SBA Disaster Assistance

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SBA Disaster Assistance

• Eastern Iowa Small Business Development Center
• A partnership program with the U.S. Small
  Business Administration

2
SBAs Role

• Homeowners, Renters and Businesses of all sizes
  are eligible for assistance with recovery efforts
• Loans, management and technical assistance
• SBA does not provide disaster grants or forgive
  disaster loans

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SBA Disaster Assistance Loans

• 2 types of loans
• Physical Damage Loans
• Real Estate
• Personal Property
• Economic Injury Disaster Loans

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Physical Damage Loans - Homes

• Individual Homeowner or Renter may be eligible
• Maximum loan amount is 200,000 for real estate
  and/or 40,000 for personal property
• Loans cover only uninsured or underinsured losses
• Loans can be used only to return property to
  pre-disaster state, not enhance property
• Rates are typically below market and may be
  amortized up to 30 years
• Loan amounts may be increased up to 20 for
  future loss prevention

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Physical Damage Loans - Business

• Any business (large or small) in declared
  disaster area may be eligible
• Maximum loan amount 1.5 million
• Loans available to repair or replace physical
  damage
• Losses only apply to those uncompensated by
  insurance or other sources
• Rates are typically below market and may be
  amortized up to 30 years

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Economic Injury Disaster Loans (EIDL)

• Available only to small businesses or
  agricultural cooperatives who have suffered
  economic injury caused by a disaster
• Not a replacement for lost sales revenue
• Only available to businesses unlikely to get
  credit elsewhere
• Maximum loan amount 1.5 million
• Rates are typically below market and may be
  amortized up to 30 years

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Program Snapshot
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Eligibility Restrictions

• Loans only cover uninsured losses
• Ineligible properties
• Second homes
• Boats, RVs, airplanes, unless proven business
  use
• Non-compliance
• Prior default
• Failure to maintain insurance
• Failure to file income tax returns

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Credit and Underwriting Requirements

• Acceptable credit history
• Ability to repay
• Collateral generally required
• PD Loans 10,000
• EIDL 5,000
• SBA will not decline a loan for lack of
  collateral, but will substitute other collateral

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How to Apply

• Register with FEMA by calling 1-800-621-3362 to
  receive a FEMA registration number.
• Contact SBA at 1-800-659-2955 and request a
  disaster loan application form.
• Complete the disaster loan application and
  required documentation.
• Submit the application. Contact your local SBDC
  office, 563-336-3401, for assistance, if needed.

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Supporting Documentation - Business

• Check the loan application (Form 5) for required
  supporting documentation
• Business Loans
• Application Form 5
• 3 Years Federal Income Tax Returns
• Personal Financial Statement, SBA Form 413
• Schedule of liabilities, SBA Form 2202
• Monthly Sales Statement for EIDL, SBA Form 1368
• IRS Form 8821

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Supporting Documentation - Individuals

• Check the loan application (Form 5C) for
  required supporting documentation
• IRS Form 8821
• Insurance Disclosure
• Current paystub, if you have changed employment
  in the past 2 years

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Filing Deadlines

• Currently the filing deadline for PD loans is
  July 28, 2008
• Currently the filing deadline for EIDLs is
  February 27, 2009
• Apply by the applicable deadline even if you have
  not fully ascertained your losses or if you
  cannot provide all supporting documentation.

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Quick Response Tips

• Make sure your application is signed and all
  boxes are complete.
• Make sure your contact information is included in
  the application.
• If you have questions, contact your local Small
  Business Development Center or an SBA
  representative.
• Complete all supporting documents
• Submit your application as soon as possible. Do
  not wait for your insurance settlement.
  Applications can be amended.
• For a business loan, make sure to include IRS
  Form 8821 on all principles of the business.

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Where to Apply

• Submit completed disaster loan applications to
• US Small Business Administration
• Processing and Disbursement Center
• 14925 Kingsport Road
• Ft. Worth, TX 76155-2243
• Applications can also be dropped off at a local
  Disaster Recovery Center in your area, if one has
  been established.

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Loan Processing Steps

• Application screened for acceptance
• Applicants credit history reviewed
• If loan is not declined for credit an SBA
  inspector completes on-site inspection
• Loan application is assigned to a loan officer

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Loan Disbursement Process

• Loan documents sent/provided to borrower
• Borrower executes and returns loan closing
  documents
• Disbursement process begins

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For More Information

• To contact the SBA Disaster Assistance Customer
  Service Center
• Call 1-800-659-2955
• Call TTY 1-800-877-8339
• E-mail disastercustomerservice_at_sba.gov
• Website http//www/sba.gov
• FEMA Website http//www.fema.gov
• To contact the SBDC office
• Call 563-336-3401
• E-mail ahutchinson_at_eicc.edu
• Website http//www.eicc.edu/sbdc/
• Website http//www.iowasbdc.org