Small Business Act of 1953, as amended, Section 7(b)(2),
Public Law 85-536, 15 U.S.C. 636(b); Disaster Relief Act of 1970, Sections
231, 234, 235, and 237; Public Law 91-606; Public Laws 92-385, 93-24, 94-68,
94-305, 95-89, 96-38, 96-302, 97-35, 98-166, 98- 270, 98-473, 99-272, 99-349,
100-220, 100-590, 102-27, and 103-75.
To assist business concerns suffering economic injury as
a result of Presidential, Small Business Administration (SBA), and/or
Secretary of Agriculture declared disasters.
TYPES OF ASSISTANCE:
Direct Loans. Place Cursor Here for Definition
Guaranteed/Insured Loans. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Up to 30 years for repayment. A $1,500,000 limit on
amount: actual economic injury governs. Funds not provided merely because of
lost income or lost profits. Funds can be provided to pay liabilities which
the small concern could have paid if the disaster had not occurred. Working
capital for limited period can be provided to continue the business in
operation until conditions return to normal. No funds available for realty,
equipment repair or acquisition: the interest rate is not to exceed 4 percent.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility:
Eligible applicant must be: A small business concern, small agricultural
cooperative or a nursery victim of drought as defined in SBA rules and
regulations; furnish evidence of the cause and extent of economic injury
claimed and unable to obtain credit elsewhere; and must be located within
declared disaster area.
Beneficiary Eligibility:
Small businesses and small agricultural cooperatives benefit.
Credentials/Documentation:
Financial Statements to prove cause and extent of economic injury, establish
eligibility and demonstrate repayment ability. A signed IRS Form 8821 to
enable SBA to obtain information from IRS and complete copies of Federal tax
returns for the past 3 prior years.
Pre-application Coordination:
This program is excluded from coverage under E.O. 12372. Generally
pre-application interviews are held to acquaint applicant with general
approach to establishing eligibility and what assistance may be available.
Application Procedure:
Applications are filed with the nearest available SBA disaster area office or
special disaster field office. One copy of SBA Form 5 and Form 1368 are
provided for this purpose.
Award Procedure: Applicant
is notified of approval by authorization letter from SBA disaster office.
Deadlines: Deadlines are
established for each declaration.
Range of Approval/Disapproval Time:
From 7 to 21 days depending on complexity of case and availability of
resources.
Appeals: Requests for
reconsideration of a declined application may be made within 6 months of the
initial decline action; 30 days from the reconsideration decline action.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements:
Not applicable.
Length and Time Phasing of Assistance:
Funds must be used within 6 months of authorization of the loan, unless
extended.
POST ASSISTANCE REQUIREMENTS:
Reports: Documentation of use
of proceeds and financial statements must be maintained by borrower.
Audits: Audits are required
only in questionable cases where funds are used contrary to conditions under
which they were authorized.
Records: Complete financial
records must be maintained.
FINANCIAL INFORMATION:
Account Identification:
73-1152-0-1-453.
Obligations: (Loans) Not
separately identifiable. (Note: Obligations for 59.002 are combined with
obligations reported under 59.008.)
Range and Average of Financial Assistance:
Direct loans: Up to $1,500,000. Average: $76,200.
During fiscal year 2001, an estimated 3,908 loans were
made for $147,089,200.
REGULATIONS, GUIDELINES, AND LITERATURE:
13 CFR Part 123; "Economic Injury Disaster Loans
for Small Business," DA-3.
INFORMATION CONTACTS:
Regional or Local Office: For
reference to the Disaster Area Office, see Appendix IV of the Catalog under
the Small Business Administration.
Headquarters Office: Office
of Disaster Assistance, Small Business Administration, 409 3rd Street, SW.,
Washington, DC 20416. Program Contact: Herbert Mitchell. Telephone: (202)
205-6734. Use the same number for FTS. E-Mail address: disaster.assistance@sba.gov.
