Disaster Loan - 3 Step Process

Mar 19, 2020
Disaster Loan - 3 Step Process
Disaster Loan - 3 Step Process
Disaster Loan - 3 Step Process

The Three Step Process:

Disaster Loans

About Disaster Loans

The U. S. Small Business Administration (SBA) provides low-interest, long-term disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters to repair or replace uninsured/underinsured disaster damaged property. SBA disaster loans offer an affordable way for individuals and businesses to recover from declared disasters.

  • Apply: 1) online; 2) in-person at a disaster center; or 3) by
  • Apply online at the SBA’s secure website https://disasterloan.sba.gov/ela.
  • As a business of any size, you may borrow up to $2 million for physical
  • As a small business, small agricultural cooperative, small business engaged in aquaculture, or private non-profit organization you may borrow up to $2 million for Economic
  • As a small business, you may apply for a maximum business loan (physical and EIDL) of $2
  • As a homeowner you may borrow up to

$200,000 to repair/replace your disaster damaged primary residence.

  • As a homeowner or renter, you may borrow up to $40,000 to repair/replace damaged personal
  • SBA reviews your credit before conducting an inspection to verify your
  • An SBA verifier will estimate the total physical loss to your disaster damaged property.
  • A loan officer will determine your eligibility during processing, after reviewing any insurance or other recoveries. SBA can make a loan while your insurance recovery is pending.
  • A loan officer works with you to provide all the necessary information needed to reach a loan determination. Our goal is to arrive at a decision on your application within 4 weeks.
  • A loan officer will contact you to discuss the loan recommendation and your next steps. You will also be advised in writing of all loan decisions.
  • SBA will prepare and send your Loan Closing Documents to you for your
  • Once we receive your signed Loan Closing Documents, an initial disbursement will be made to you within 5 days:
    • Physical damage:
      • $25,000
    • Economic injury (working capital):
      • $25,000
    • A case manager will be assigned to work with you to help you meet all loan conditions. They will also schedule subsequent disbursements until you receive the full loan
    • Your loan may be adjusted after closing due to your changing circumstances, such as increasing the loan for unexpected repair costs or reducing the loan due to additional insurance

For more information or to find a local disaster center, contact SBA’s Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339). http://www.sba.gov/disaster

Required Documentation      
The following documents are required to process your application and reach a loan decision. Your Loan Officer and Case Manager will assist you to ensure that you submit the proper documentation. Approval decision and disbursement of loan funds is dependent on receipt of your documentation.

BUSINESSES

HOMEOWNERS AND RENTERS

·         Business Loan Application (SBA Form 5) completed and signed by business applicant.

·         IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).

·         Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.

·         Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.

·         Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used). ADDITIONAL INFORMATION THAT MAY BE NECESSARY TO PROCESS YOUR APPLICATION:

·         Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.

·         If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year.

·         A current year-to-date profit and loss statement.

·         Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.

·         Home Loan Application (SBA Form 5c) completed and signed by Applicant and Co-Applicant.

·         IRS Form 4506-T completed and signed by Applicant and Co-Applicant.

 

 

 

 

https://disasterloan.sba.gov/ela

 

 

 

1-800-659-2955 (TTY: 1-800-877-8339)

For more information or to find a local disaster center, contact SBA’s Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339). http://www.sba.gov/disaster

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