For emergency response and recovery information, visit SoCoEmergency.org

FAQ Topic: Disaster & Financial Assistance

What is the difference between FEMA and the SBA?

FEMA coordinates the Federal Government’s role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters. SBA, on the other hand, is the Federal Government’s primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps homeowners, renters, businesses, and non-profit organizations repair or replace real estate, … Continued

Do I have to register with FEMA to get help?

Yes, with very few exceptions, if you want federal assistance you must register with FEMA, either by telephone (1-800-621-FEMA (3362)), or online (www.DisasterAssistance.gov). You will need your FEMA registration number for future reference.

Why should survivors apply for disaster loans?

Why should survivors apply? Survivors referred to the SBA must apply with SBA even if they feel they cannot afford or do not want a loan in order to receive some FEMA assistance. Whether a loan is wanted or not, the SBA loan application may trigger additional grant assistance through FEMA’s Other Needs Assistance (ONA) … Continued

Are there Insurance Requirements for Loans?

To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of The total of the disaster loan The … Continued

Is there Help with Funding Mitigation Improvements?

If your loan application is approved, you may be eligible for additional funds to cover the cost of improvements that will protect your property against future damage. Examples of improvements include retaining walls, seawalls, sump pumps, etc. Mitigation loan money would be in addition to the amount of the approved loan, but may not exceed … Continued

What Restrictions are there on Loan Eligibility?

Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility. Ineligible Property – Secondary … Continued

What are the Loan Amount Limits?

Business Loans – The law limits business loans to $2,000,000 for the repair or replacement of real estate, inventories, machinery, equipment and all other physical losses. Subject to this maximum, loan amounts cannot exceed the verified uninsured disaster loss. Economic Injury Disaster Loans (EIDL) – The law limits EIDLs to $2,000,000 for alleviating economic injury caused … Continued

What are Loan Terms?

The law authorizes loan terms up to a maximum of 30 years. However, the law restricts businesses with credit available elsewhere to a maximum 7-year term. SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay. Source: U.S. Small Business Administration

What are the Interest Rates for Disaster Loans?

By law, the interest rates depend on whether each applicant has Credit Available Elsewhere. An applicant does not have Credit Available Elsewhere when SBA determines the applicant does not have sufficient funds or other resources, or the ability to borrow from non-government sources, to provide for its own disaster recovery. An applicant, which SBA determines … Continued

What are the Credit Requirements for Disaster Loans?

Credit History – Applicants must have a credit history acceptable to Small Business Association (SBA) Repayment – Applicants must show the ability to repay all loans. Collateral – Collateral is required for physical loss loans over $25,000 and all Economic Injury Disaster Loans loans over $25,000. SBA takes real estate as collateral when it is … Continued

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