application data from the U.S. Federal Disaster Loan program, which provides loans to households that have uninsured damages from … a federally-declared natural disaster, to a panel of credit records before and after the shock. We exploit a … following the disaster. We explore mechanisms using additional quasi-experimental variation in interest rates, finding support …

We test if and how banks adjust their lending in response to disaster risk in the form of a natural catastrophe … disaster shocks faced especially by small and medium firms. …