SBA’s Disaster Loan Program Learning the Basics of the Application Process for Presidentially Declared Disasters

Office of Disaster Assistance - Mission To provide low interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners and renters to repair or replace real estate, personal property, machinery & equipment, inventory and business assets that have been damaged or destroyed in a declared disaster. 2

SBA’s disaster loans are only available when there is a disaster declaration. Loans are for uninsured or uncompensated losses. However Survivors may apply before insurance is settled or proceeds are received. The disaster loans are direct from the federal government (SBA); not banks. 3 SBA’s Disaster Loan Program

Presidential Declaration for Individual Assistance When the President declares a major disaster declaration for Individual Assistance (IA), SBA’s Administrator also makes a declaration which activates SBA’s disaster loan program. Businesses of all sizes, private non-profit organizations, homeowners, and renters are eligible to apply for low- interest, long term SBA disaster loans for their uncompensated physical losses. Small businesses, small cooperatives and most private non-profits of any size, can apply for working capital loans to cover their economic injury losses. President Barack Obama SBA Administrator Maria Contreras-Sweet

Types of LoansBorrowersPurposeMax Amount Business Loans “Physical” Businesses and non-profits of all sizes Repair or replace real estate, equipment, furniture, etc. $2 million * Economic Injury Loans Small businesses & most private non-profits of all sizes Economic injury disaster loans or working capital loans $2 million * Mitigation Businesses and non-profits of all sizes Mitigate / prevent future loss to real property 20% of verified physical damage. * SBA Disaster Loan Limits -Business *The maximum business loan is $2 million, unless the business qualifies as a Major Source of Employment (MSE). 5

Types of LoansBorrowersPurposeMax Amount Home LoansHomeowners Repair or replace real property $200,000 Home Loans Homeowners & Renters Repair or replace personal property $40,000 Mitigation Homeowners Mitigate / prevent future loss to real property 20% of verified physical damage; limited to $200,000. SBA Disaster Loan Limits - Home 6

Features of SBA Disaster Loans Loan terms – Up to 30 years based on ability to repay; low-fixed interest rate. Relocation – Funds may be used at a relocation site, specific criteria applies. Refinancing – Funds may be available to homeowners and businesses; substantial damage and other criteria must be met for this approval. 7

Requirements for Loan Approvals Eligibility Damaged property/business must be in a declared county. Credit History Applicants must have a credit history acceptable to SBA. Repayment Applicants must show the ability to repay the SBA loan. 8

In presidential disaster declarations, physical loans over $25,000 require collateral. Economic injury loans over $25,000 require collateral. Note: SBA will not decline a loan for lack of collateral, but requires collateral that is available. Collateral Requirements 9

How to Begin To get federal aid, first register with FEMA. Individuals can register: By phone FEMA (3362) or TTY for the speech-and hearing- impaired. Online at or Via web-enabled phone or tablet at m.fema.gov.

Generally, FEMA’s grant funds are designated to make the applicant’s household safe, sanitary and functional. When a home is unlivable, FEMA’s grant funds are allocated for rental assistance. SBA’s disaster loan funds are designed to provide for full recovery (repairs and replacement needs) up to the SBA loan limits, and are geared toward long term recovery. For homeowners and renters only. FEMA versus SBA – What’s the Big Difference?

If referred to SBA, homeowners and renters should submit an SBA disaster home loan application, even if they think they will not qualify. If SBA cannot approve the loan request, survivors may be referred back to FEMA and considered for grants and programs that could include assistance for disaster-related car repairs, clothing and household items. SBA loans cover disaster losses that are not covered by insurance or recoveries from other sources. It is not necessary to wait for your insurance settlement before applying with SBA. FEMA Referrals to SBA Apply as soon as possible!

After registering with FEMA for assistance, survivors may be referred to the U.S. Small Business Administration (SBA) for possible disaster loan assistance. Survivors may receive a call from an SBA Customer Service Representative asking if they are interested in applying for an SBA disaster loan. There are three ways to apply to SBA. FEMA Referrals to SBA

Apply on-line by completing the loan application found at: disasterloan.sba.gov/ela The Electronic Loan Application (ELA) saves time, is more accurate and reduces the time it takes for loan decisions. Applicants can access the application on-line from anywhere. The SBA station at the Disaster Recovery Center usually has computers for this purpose, and SBA Customer Service Representatives can guide applicants through the process. Convenient Ways to Apply to SBA – Option # A - Submit an SBA Application Electronically

SBA Customer Service Representatives are available at the Disaster Recovery Centers to provide face-to-face assistance, answer program questions and help anyone who wants to submit an SBA disaster loan application. Contact SBA’s Customer Service Center at or visit for information about Center locations and hours of operation. Convenient Ways to Apply to SBA – Option # B - Submit an SBA Application – in Person

Request an application to be mailed by calling , or downloaded the forms from SBA’s website at: Completed paper applications should be returned to a Center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, Kingsport Road, Fort Worth, TX Make sure the application is submitted by the filing deadline. Convenient Ways to Apply to SBA – Option # C - Submit an SBA Application – By Mail

Submit your application. Missing information is the primary reason for a delay in processing an application. Check to insure that it is substantially complete and is accompanied by the additional forms or documents required. The Three Step Process: Disaster Loans The Application Process

Generally after basic eligibility criteria is met, the losses are verified and the file is processed to a decision. If the loan is approved, the application file moves forward. The Three Step Process: Disaster Loans If the loan is unable to be approved, the applicant is advised and given the opportunity to seek reconsideration. The Application Process

Disbursements are generally made in installments after required loan closing documents are submitted and reviewed. The first disbursement in presidential declarations is usually $25,000; the maximum unsecured loan amount. The Three Step Process: Disaster Loans The Application Process

Help From SBA’s Partner - Small Business Development Centers (SBDC) 20

Affected Counties: #SCFlood Disaster Declaration Primary Counties: Bamberg, Berkeley, Calhoun, Charleston, Clarendon, Colleton, Darlington, Dorchester, Florence, Georgetown, Greenwood, Horry, Kershaw, Lee, Lexington, Orangeburg, Richland, Sumter and Williamsburg Contiguous Counties (eligible for Economic Injury loans only): Abbeville, Aiken, Allendale, Barnwell, Beaufort, Chesterfield, Dillon, Edgefield, Fairfield, Hampton, Lancaster, Laurens, Marion, Marlboro, McCormick, Newberry and Saluda

#SCFlood FEMA/SBA Mobile Disaster Recovery Centers Hours: 8 a.m. to 7 p.m., 7 days/week Clarendon CountyFlorence CountyHorry County Weldon Auditorium SC Conference of the International North Strand Recreation Park 7 Maple Street Pentecostal Holiness Church, Inc. 120 Hwy 57 South Manning, SC S Ron McNair BlvdLittle River, SC Lake City, SC Opens: Tuesday, Oct. 13 at 1 p.m. Horry CountyKershaw CountyLexington County South Strand Recreation ParkBlaney Fire DepartmentCayce-West Columbia Branch Library 9650 Scipio Lane2344 Hwy 1 South1500 Augusta Road Myrtle Beach, SC 29588Elgin, SC 29045West Columbia, SC Lexington CountyOrangeburg County Richland County Irmo Branch LibraryHolly Hill Police Department Richland Library Southeast 6251 St. Andrews Road8423 Old State Road, Suite Garners Ferry Road Columbia, SC 29212Holly Hill, SC Columbia, SC Richland CountySumter County Richland Library EastoverCivic Center 608 Main Street700 W Liberty Street Eastover, SC 29044Sumter, SC

South Carolina District Office For more information on SBA’s programs and services Please contact: South Carolina District Office 1835 Assembly Street Columbia, SC Telephone: Or visit our office web site at

For more information on disaster assistance, survivors can call our Customer Service Center at: or TTY (800) , or send an to: or visit: *** SBA Disaster Assistance Program