INSIGHTi

SBA Disaster Assistance for Civil Unrest
March 3, 2021
The Administrator of the Small Business Administration (SBA) has the authority—after gubernatorial
requests for disaster assistance, including for riots and civil disorders—to issue disaster declarations
authorized under the Small Business Act that activate the Small Business Administration’s (SBA)
Disaster Loan Program. This Insight provides information about SBA disaster declarations and SBA
disaster loan types. Table 1 provides historical information on SBA disaster declarations for civil unrest
incidents since 1967.
The Small Business Act defines a disaster as

In the case of civil unrest, the SBA Administrator may issue: (1) a physical disaster declaration, or (2) an
Economic Injury Disaster Loan declaration.
SBA Physical Disaster Declaration
The SBA Administrator determines whether to issue a SBA physical disaster declaration based on a
minimum amount of uninsured physical damage to buildings, machinery, inventory, homes, and other
property. Generally, this minimum is 25 homes or businesses (or some combination of the two) that have
sustained uninsured losses of 40% or more in any county or political subdivision of a state or U.S.
possession. SBA physical disaster declarations make disaster loans available to eligible individuals,
households, businesses, and private nonprofit organizations.
Congressional Research Service
https://crsreports.congress.gov
IN11623
CRS INSIGHT
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Home Disaster Loans
SBA physical disaster declarations trigger two categories of SBA home disaster loans: (1) Real Property
Disaster Loans, and (2) Personal Property Disaster Loans. Real Property Disaster Loans provide
creditworthy homeowners located in a declared disaster area with up to $200,000 to repair or restore the
homeowner’s primary residence to its pre-disaster condition. Personal Property Disaster Loans provide
creditworthy homeowners or renters located in a declared disaster area with up to $40,000 to repair or
replace personal property owned by the disaster survivor—including clothing, furniture, cars, or
appliances damaged or destroyed in the disaster.
Business Disaster Loans
SBA physical disaster declarations also trigger two categories of SBA business disaster loans: (1)
Business Physical Disaster Loans; and (2) Economic Injury Disaster Loans (EIDLs). Business Physical
Disaster Loans provide up to $2 million to repair or replace damaged physical property, including
machinery, equipment, fixtures, inventory, and leasehold improvements not covered by insurance. EIDLs
provide up to $2 million in working capital to help meet financial obligations and operating expenses that
could have otherwise been met had the disaster not occurred. Loan amounts for EIDLs are based on actual
economic injury and financial needs, regardless of whether the business suffered any property damage.
Eligible nonprofit organizations may also apply for Business Physical Disaster loans and EIDLs. The loan
terms are the same as those offered to businesses.
Interest Rates and Loan Terms
Interest rates for SBA home disaster loans and business physical disaster loans cannot exceed 8% per
annum, or exceed 4% per annum if the applicant is unable to obtain credit elsewhere, and have loan
maturities up to 30 years.
EIDLs have interest rates statutorily set at 4% per annum and have maturities up to 30 years.
SBA EIDL Declaration
SBA EIDL declarations make EIDL assistance available to eligible businesses and private nonprofit
organizations. The SBA Administrator may issue an EIDL declaration upon receipt of a certification from
a state governor that at least five small businesses have suffered substantial economic injury resulting
from a disaster. SBA EIDL declarations are issued only when other viable forms of financial assistance
are unavailable. Small agricultural cooperatives and most private nonprofit organizations located within
the disaster area or contiguous counties and other political subdivisions are eligible for SBA disaster loans
when the SBA Administrator issues an EIDL declaration.
Table 1. Small Business Act Declarations Related to Civil Unrest (1967-2020)
Loan Amounts in Nominal Dollars
Total
Approved
Incident Description and Disaster
Loan
Number
Declaration Type
Declaration Date
Amounta
Civil Unrest in Charleston, South Carolina
Economic Injury Disaster
08/17/2020
$332,300
(Death of George Floyd)
Loan (EIDL) Declaration
SC-00074

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Total
Approved
Incident Description and Disaster
Loan
Number
Declaration Type
Declaration Date
Amounta
Civil Unrest in Philadelphia, Pennsylvania
SBA Administrative Physical
08/07/2020
$373,300
(Death of George Floyd)
Disaster Declaration
PA-00106

EIDL Declaration
Civil Unrest in Minneapolis, Minnesota
SBA Administrative Physical
08/03/2020
$3,465,600
(Death of George Floyd)
Disaster Declaration
MN–00081

EIDL Declaration
Civil Unrest in Chicago, Il inois
SBA Administrative Physical
06/23/2020
$1,134,000b
(Death of George Floyd)
Disaster Declaration
IL–00060

EIDL Declaration
Civil Unrest in San Francisco, California
SBA Administrative Physical
06/17/2020
$4,350,000
(Death of George Floyd)
Disaster Declaration
CA–00319
Civil Unrest in Baltimore, Maryland
SBA Administrative Physical
05/11/2015
$165,400b
(Death of Freddie Gray)
Disaster Declaration
MD-00028

EIDL Declaration
Civil Unrest in Ferguson, Missouri
EIDL Declaration
09/03/2014
$7,800
(Death of Michael Brown)

MO–00072
Civil Unrest in Cincinnati, Ohio
EIDL Declaration
05/01/2001
$176,700
(Death of Timothy Thomas)

#9L55
Civil Unrest in Seattle, Washington
EIDL Declaration
04/07/2000
$19,000
(World Trade Organization Conference)
#9H05
Civil Unrest in St. Petersburg, Florida
SBA Administrative Physical
12/03/1996
$1,639,100
(Death of Tyron Lewis)
Disaster Declaration
#2916

Civil Unrest in Washington DC.
EIDL Declaration
07/25/1991
$809,200
(Death of Daniel Enrique Gomez)

#7356, #7357, #73581
Civil Disorder in Miami, Florida
SBA Administrative Physical
06/02/1980
$22,641,858
(Death of Arthur McDuffie)
Disaster Declaration
#1843

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Civil Disorder in Newark, NJ
SBA Administrative Physical
07/31/1967
$365,650
(Beating of John Wil iam Smith)
Disaster Declaration
#632

Civil Disorder in Detroit, MI
SBA Administrative Physical
07/31/1967
$3,979,500
(Police raid of a blind pigc)
Disaster Declaration
#631

Sources: Compiled by CRS using SBA Disaster Loan Data Sets, Federal Register, and press accounts.
Notes: SBA Administrative Physical Disaster Declarations make all SBA loan types available to eligible individuals and
households, businesses, and private, nonprofit organizations. Not all applicants accept approved loans. Links are provided
to Federal Register announcements when available.
a. Loan amounts provided by SBA for select disasters are current as of November 18, 2020.
b. SBA agency total amount. Granular data on SBA business disaster loans (including EIDL) and home disaster loans
were not available.
c. “Blind pig” refers to an il icit drinking establishment.


Author Information

Bruce R. Lindsay
Jared C. Nagel
Specialist in American National Government
Senior Research Librarian





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IN11623 · VERSION 1 · NEW

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