Can a loan from FEMA (SBA) be deducted. I mean the interest, can the interest be deducted?

Yes.

As long as the home is used as collateral for the loan.

If you mean a business loan from SBA, then it is also deductible as a business expense.

It is a business loan from through FEMA offered due to a 2014 disaster declaration in Mi. It was not meant to cover business expenses but to help with the restoration of my home due to flood damage

That's what I thought but mentioned the business in case I was incorrect.  In order to deduct the interest as mortgage or home interest, the home has to be collateral.

Thanks!