Disaster Assistance Loans

To provide loans to the survivors of declared disasters for uninsured or otherwise uncompensated physical damage and economic injury.



Agency - Small Business Administration

The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

Office - See Regional Agency Offices.

For reference to the Disaster Center Office, see Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.



Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Loans made to businesses of all sizes, nonprofit organizations, homeowners and renters to repair or replace damaged or destroyed real property and/or personal property to its pre-disaster condition.

Credit elsewhere test required for all applicants to determine interest rate.

Loans to homeowners/tenants are made for up to 30 years.

For homeowners, limit of $200,000 for repair/replacement of real property; for homeowners and renters, limit of $40,000 for repair/replacement of personal property.

The loan limit may be increased to provide post-disaster mitigation.

Loans to business generally may not exceed $2,000,000.

For businesses determined to be able to obtain credit elsewhere, maturities may not exceed 7 years.

For businesses determined to be unable to obtain credit elsewhere and for nonprofit organizations, maturities may not exceed 30 years.

Under certain circumstances, homeowners and businesses may be eligible for refinancing of existing liens.

Economic Injury Disaster Loans are available and provide working capital to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.

These loans are intended to assist through the disaster recovery period.

Provisions of the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 apply.

Additional information provided on SBA's website at www.sba.gov/Disaster.

See information at www.sba.gov/Disaster.

Information available at www.sba.gov/Disaster.

Eligibility Requirements

Applicant Eligibility

Eligible applicants must have suffered physical property loss or economic injury as a result of a disaster which occurred in an area declared by the President or SBA.

They must also demonstrate an ability and willingness to repay the loan.

Business concerns, charitable and nonprofit organizations and individuals are eligible to apply for assistance.

Beneficiary Eligibility

Business concerns, charitable and nonprofit organizations, and individuals. Agricultural enterprises are ineligible.

Credentials/Documentation

For homeowners and renters: A Home Loan Application (SBA Form 5c) completed and signed by Applicant and Co-Applicant and an IRS Form 4506T completed and signed by Applicant and Co-Applicant to enable SBA to obtain tax return information from IRS. For Businesses: A Business Loan Application (SBA Form 5) completed and signed by business applicant and an IRS Form 4506T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management.). Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available. Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member. Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used). This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is required.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.

12372.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. SBA now offers you the option of filing home and business disaster loan applications through the Electronic Loan Application (https://disasterloan.sba.gov/ela). Over 90% of our applications are submitted through the Electronic Loan Application. Applicants have the option of submitting an application via mail. Applicants may also apply in person at any Disaster Recovery Center and receive personal, one-on-one help from an SBA representative. Applicants can find information by contacting SBA's Customer Service Center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.

Award Procedures

Applicant is notified of approval by authorization letter from SBA.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

Small Business Act, Section 7(b) (15 U.S.C. 636(b)), Public Law 91-606.

Range of Approval/Disapproval Time

Generally, from 2 to 3 weeks depending on complexity of case and availability of resources.

Appeals

Reconsideration of a declined application can be requested within 6 months of the initial decline, and appealed within 30 days from the reconsideration decline.

Renewals

Additional information provided on SBA's website at www.sba.gov/Disaster.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. This program has no matching requirements. This program does not have MOE requirements.

Length and Time Phasing of Assistance

Funds must be disbursed within six months of authorization of the loan, unless extended. See the following for information on how assistance is awarded/released: Additional information provided on SBA's website at www.sba.gov/Disaster.

Post Assistance Requirements

Reports

Additional information provided on SBA's website at www.sba.gov/Disaster.

Information available at www.sba.gov/Disaster.

Additional information provided on SBA's website at www.sba.gov/Disaster.

See information at www.sba.gov/Disaster.

Additional information provided on SBA's website at www.sba.gov/Disaster.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Information available at www.sba.gov/Disaster.

Records

Complete financial records must be maintained by business borrower.

Financial Information

Account Identification

73-1152-0-1-453.

Obigations

(Direct Loans) FY 16 $1,181,000,000; FY 17 est $1,600,000,000; and FY 18 est $1,100,000,000

Range and Average of Financial Assistance

Additional information provided on SBA's website at www.sba.gov/Disaster.

Regulations, Guidelines, and Literature

13 CFR Part 123; 'Disaster Loans for Homes and Personal Property, 'Physical Disaster Business Loans' and 'Economic Injury Disaster Loans'.

Information Contacts

Regional or Local Office

See Regional Agency Offices. For reference to the Disaster Center Office, see Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.

Headquarters Office

Alan Escobar 409 3rd St., 6th Floor Office of Disaster Assistance, Washington, District of Columbia 20416 Email: alan.escobar@sba.gov Phone: 202-205-6734

Criteria for Selecting Proposals

Not Applicable.



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