SBA Loans Disaster

Prepare for emergencies

When a disaster strikes, smart planning will help you keep your business running. And, if disaster strikes, you will want to take the right steps to prevent and plan for the disaster, and know where to get help.

Get financial assistance after a disaster

First contact FEMA to seek financial assistance when a disaster hits your small business. Along with other personal expenses including food, clothing and medication, they can also provide housing income.

The SBA loans disaster and the United States Agriculture Department are offering low-interest loans in a declared disaster for damaged and lost properties. These include costs of repairing and replacing buildings, personal property, machinery, equipment, inventory, and assets of the company.

Certain sources of disaster aid

Emergency unemployment assistance, supports individual employees while they are unemployed due to a disaster, and provides aid for flood recovery and will benefit flood-displaced workers.

Businesses in federally designated disaster areas might be eligible for special financial recovery tax provisions. The Farm Service Agency also acts as a guide, to farmers and ranchers after natural disasters, for disaster assistance.

Disaster recovery

Take precautions to avoid injury or illness , during the cleanup process, that takes place after a disaster. The wide variety of threats range from disconnected power lines and polluted waters, to mold and toxins.

Disasters are magnified by their effect on health and health care, and through its health studies division, the Center for Disease Control (CDC) which is an important government resource. Cleanup tips are provided by the Occupational Safety and Health Administration (OSHA) specifically for hazards during the recovery of natural disasters.

If you are experiencing hazardous material spills or discharges, call the National Response Center, and if necessary, contact the National Pesticide Centre. Registration for pollution and environmental breaches is provided by the Environmental Protection Agency (EPA).

Loan Application Process

DETERMINE ELIGIBILITY

In order to apply, applicants must:

• Have sustained “substantial economic damage” directly attributed to the case, and be able to demonstrate it.
• Be unable to meet its responsibilities and pay the daily and required operating expenses. EIDL’s provide the working capital needed to help small businesses thrive before regular operations resume after a disaster.
• Not have credit anywhere.
• Have a healthy, SBA-acceptable credit history.
• Prove ability to repay all loans.
• Pledge collateral where available.

Continue to Step 2, if you are eligible..

GATHER REQUIRED DOCUMENTS

Tax Information Authorization (with an IRS Form 4506 T, IRS Form 4506 T), must be completed and signed by each claimant, and by each principal owning 20% or more of the applicant’s company,  also, by each general partner or managing member; and by any proprietor holding more than 50% ownership of the affiliated business. Affiliates include, but are not limited to, company members, branches and/or other undertakings with common ownership or management. The full versions, including all the schedules, of the latest Federal income tax returns for the applicant’s undertaking; a summary, if not available, of the Schedule for Liabilities detailing all fixed debts (SBA Form number 2202).Also, monthly sales estimates (SBA Form 1368) of the sales staff. These loans are not intended to replace, or increase, lost sales or earnings. The funds should not be used to pay down any long-term debt that the company has incurred..

Copy certain documents that may be required, including all schedules, of the most recent Federal Revenue Tax Return of Principals, and General Partners or Managing Directors, and their Affiliates (see the filing requirements for extra information). As the most recent Federal Revenue Tax Return has still not been released, a year-end requirement is a profit-and-loss statement as well as a balance sheet for the current tax year will be required.

It has been started that: “Such loans may be used to fund fixed expenses, salaries, accounts payable and other bills which can not be paid due to the impact of the disaster. Disaster loans can provide essential economic assistance to small businesses to help them resolve the temporary loss of income they are facing”. The American Congress, through the Small Business Administration, earlier this month, approved up to $7 billion for small business disaster loans. Unlike the flagship loans made by banks in the sector, disaster loans are issued directly by the government.

Previously, red tape made the process of applying for disaster loans, sluggish. Therefore, to qualify companies eligible for the loans in their state, the governor of each state has to submit a formal request for a disaster declaration to the American government. All 50 states must have their applications submitted and accepted, before this Sunday before an SBA Loans Disaster.