Disaster Assistance Loans (Disaster Relief Appropriations Act)

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



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 Area Office, see Appendix IV of the Catalog under the Small Business Administration.


Program Accomplishments

Not Applicable.

Uses and Use Restrictions

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 homeowners, renters, businesses of all sizes, and nonprofit organizations 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 $1,500,000.

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 $1,500,000 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.

Collateral is required on loans greater than $10,000.

Additional information provided on SBA"s website at sba.gov.

Additional information provided on SBA"s website at sba.gov.

Additional information provided on SBA"s website at sba.gov.

Eligibility Requirements

Applicant Eligibility

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.

Beneficiary Eligibility

Individuals, business concerns, charitable and nonprofit organizations.

Agricultural enterprises are ineligible.

Credentials/Documentation

A signed loan application, financial information, and a signed IRS Form 8821 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 OMB Circular No. A-87.

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 OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. 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.

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 of 1953, Public Law 091-606, as amended by Disaster Relief Appropriations Act, 2013, Public Law 113-2.

Range of Approval/Disapproval Time

Generally from 7 to 21 days 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 sba.gov.

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: See the following for information on how assistance is awarded/released: Additional information provided on SBA"s website at sba.gov.

Post Assistance Requirements

Reports

Additional information provided on SBA"s website at sba.gov.

Additional information provided on SBA"s website at sba.gov.

Additional information provided on SBA"s website at sba.gov.

Additional information provided on SBA"s website at sba.gov.

Additional information provided on SBA"s website at sba.gov.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Additional information provided on SBA"s website at sba.gov.

Records

Additional information provided on SBA"s website at sba.gov.

Financial Information

Account Identification

73-1152-0-1-453.

Obigations

(Salaries) FY 12 $0; FY 13 Estimate Not Available; and FY 14 Estimate Not Available

Range and Average of Financial Assistance

Additional information provided on SBA"s website at sba.gov.

Regulations, Guidelines, and Literature

13 CFR Part 123; "Disaster Loans for Homes and Personal Property," DA-1: "Physical Disaster Business Loans," DA-2.

Information Contacts

Regional or Local Office

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

Headquarters Office

SBA Executive Secretariat 409 3rd. Street, SW, Washington, District of Columbia 20416 Email: SBAExecSec@sba.gov Phone: 1-800-827-5722

Criteria for Selecting Proposals

Not Applicable.



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