Substantial Damage

means uninsured or otherwise uncompensated disaster damages:

a) For homes is either: 40 percent or more of the home's pre-disaster fair market value (FMV) or replacement cost including the value of any land, whichever is less; or 50 percent or more of the structure’s pre-disaster fair market value or replacement cost, (excluding the value of any land) whichever is less.

b) For businesses is either: 40 percent or more of the aggregate value (lesser of market value or replacement cost at the time of the disaster) of the damaged real property (including the value of any land) and damaged machinery and equipment; or50 percent or more of the aggregate value (lesser of market value or replacement cost at the time of the disaster) of the damaged real property (excluding the value of any land) and damaged machinery and equipment.

Updated on
September 8, 2022
Published on
June 20, 2018
The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Joint Venture
In the SBA Mentor-Protégé Program...
Principal
the owner(s) of the Applicant Entity that...
Phase 1
Process used to determine the...
Projection
An estimate of future economic or...
SCORE
Counselors to America's Small Bus...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Normal Annual Sales
Those sales that would have...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Injury Analysis
Measures the effects of...
Break-even Analysis
A calculation of the approximate sales...
Companion File
When an applicant has another application filed...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Affiliate
Business concerns are affiliates if one concern...
Small Disadvantaged Business Concern
A small business concern that...

Get the quick rundown on SBA Loans

Join over 4,000+ small business owners already growing with us.