Disaster Assistance Loans (Disaster Relief Appropriations Act)

 

To provide loans to the victims of declared disasters for uninsured or otherwise uncompensated physical damage.

Deleted 04/02/2020 (Archived.) 59.063 Agency: Small Business Administration Direct Loans Not Applicable. Small Business Act of 1953, Public Law 091-606. Eligible applicants must have suffered physical property loss 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. Individuals, business concerns, charitable and nonprofit organizations are eligible to apply for assistance. Business concerns, charitable and nonprofit organizations, and individuals.

Agricultural enterprises are ineligible. Home loans for more than $25,000 in Presidential declarations, and loans over $14,000 in Agency declarations must be secured with collateral to the extent possible. A signed loan application, financial information, and a signed IRS Form 8821/4506T to enable SBA to obtain tax return information from IRS for the three years prior to the disaster (one year for homeowners and renters). Complete copies of Federal Tax returns for the past three years for business applicants. Financial information on principals and affiliates for business applicants. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles. Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. 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/). Applicants also have the option of submitting your 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 informationby contacting SBA's Customer Service Center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov. Applicant is notified of approval by authorization letter from SBA. Contact the headquarters or regional office, as appropriate, for application deadlines. Generally from 7 to 21 days depending on complexity of case and availability of resources. Reconsideration of a declined application can be requested within 6 months of the initial decline, and appealed within 30 days from the reconsideration decline. Additional information provided on SBA's website at sba.gov. Not Applicable. Funds provided under the Disaster Relief Appropriations Act are to support loans approved for any declared disaster and for the SBA to administer the direct loan program. Loans made to businesses of all sizes, and nonprofit organizations, to homeowners, 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. Limit of $200,000 for repair/replacement of real property; $40,000 for repair/replacement of personal property. The loan limit may be increased by 20 percent to provide protective measures from damages caused by physical disasters. The interest rate for homeowners/tenants who have credit available elsewhere is determined by a formula based on the cost of money to the U.S. Government, but not to exceed 8 percent. The interest rate for homeowners/tenants who do not have credit available elsewhere is one-half of the formula rate, but not to exceed 4 percent. Loans to business may not exceed $ 2,000,000. For businesses determined to be able to obtain credit elsewhere, the interest rate is based on a statutory formula, but not to exceed 8 percent, with maturities not to exceed 3 years. For nonprofit organizations determined to be able to obtain credit elsewhere, the interest rate is based on a statutory formula, with maturities not to exceed 30 years. For businesses and nonprofit organizations determined to be unable to obtain credit elsewhere, the interest rate may not exceed 4 percent, with maturities up to 30 years. Under certain circumstances, homeowners and businesses may be eligible for refinancing of existing liens. There are statutory restrictions on the use of funds for voluntary relocation. In the case of a Major Source of Employment, the $2,000,000 limitation on disaster business loans may be waived. Provisions of 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. Information available at www.sba.gov. See SBA's website at www.sba.gov. Information available at www.sba.gov. Additional information provided on SBA's website at sba.gov. Additional information provided on SBA's website at www.sba.gov. 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. See BA's website at www.sba.gov. This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements. 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: See the following for information on how assistance is awarded/released: Additional information provided on SBA's website at www.sba.gov. See Regional Agency Offices. For reference to the Disaster Area Office, see Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration. Alan Escobar 409 3rd. Street, SW
6th Floor, Washington, District of Columbia 20416 Email: alan.escobar@sba.gov Phone: 202-205-6098 http://www.sba.gov/disaster 73-1152-0-1-453. (Direct Loans) FY 14 $302,000,000; FY 15 est $1,100,000,000; and FY 16 est $1,100,000,000 Additional information provided on SBA's website at www.sba.gov. 13 CFR Part 123; "Disaster Loans for Homes and Personal Property" and "Physical Disaster Business Loans". Not Applicable.