|
Date: 11/20/2018
<br />What are the Loan Amount Limits?
<br />• Business Loans — The law limits business loans to $2,000,000 for the repair or replacement of real estate, inventories,
<br />machinery, equipment and all other physical losses. Subject to this maximum, loan amounts cannot exceed the verified
<br />uninsured disaster loss.
<br />• Economic Injury Disaster Loans (EIDL) — The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the
<br />disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption
<br />insurance and other recoveries up to the administrative lending limit. EIDL assistance is available only to entities and their
<br />owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business
<br />Administration.
<br />• Business Loan Ceiling — The $2,000,000 statutory limit for business loans applies to the combination of physical, economic
<br />injury, mitigation and refinancing, and applies to all disaster loans to a business and its affiliates for each disaster. If a
<br />business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
<br />• Home Loans — SBA regulations limit home loans to $200,000 for the repair or replacement of real estate and $40,000 to repair
<br />or replace personal property. Subject to these maximums, loan amounts cannot exceed the verified uninsured disaster loss.
<br />What Restrictions are there on Loan Eligibility?
<br />• Uninsured Losses — Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which
<br />are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan
<br />eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.
<br />• Ineligible Property — Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not
<br />eligible, unless used for business purposes. Property such as antiques and collections are eligible only to the extent of their
<br />functional value. Amounts for landscaping, swimming pools, etc., are limited.
<br />• Noncompliance — Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes
<br />borrowers who did not maintain flood and/or hazard insurance on previous SBA loans.
<br />Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this
<br />declaration to determine how an approval of SBA disaster loan might affect their eligibility.
<br />Is There Help with Funding Mitigation Improvements?
<br />If your loan application is approved, you may be eligible for additional funds to cover the cost of improvements that will protect your
<br />property against future damage. Examples of improvements include retaining walls, seawalls, sump pumps, etc. Mitigation loan money
<br />would be in addition to the amount of the approved loan, but may not exceed 20 percent of total amount of physical damage to real
<br />property, including leasehold improvements, and personal property as verified by SBA to a maximum of $200,000 for home loans. It is
<br />not necessary for the description of improvements and cost estimates to be submitted with the application. SBA approval of the
<br />mitigating measures will be required before any loan increase.
<br />Is There Help Available for Refinancing?
<br />• SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant (1) does not have
<br />credit available elsewhere, (2) has suffered substantial uncompensated disaster damage (40 percent or more of the value of
<br />the property or 50% or more of the value of the structure), and (3) intends to repair the damage.
<br />• Businesses — Business owners may be eligible for the refinancing of existing mortgages or liens on real estate, machinery and
<br />equipment, up to the amount of the loan for the repair or replacement of real estate, machinery, and equipment.
<br />• Homes — Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, up to the amount of the
<br />loan for real estate repair or replacement.
<br />What if I Decide to Relocate?
<br />You may use your SBA disaster loan to relocate. The amount of the relocation loan depends on whether you relocate voluntarily or
<br />involuntarily. If you are interested in relocation, an SBA representative can provide you with more details on your specific situation.
<br />Are There Insurance Requirements for Loans?
<br />To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers
<br />whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA
<br />requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the
<br />maximum insurance available.
<br />Applicants may apply online, receive additional disaster assistance information and download applications at
<br />https://disasterloan.sba.gov/ela. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email
<br />disastercustomerservice(a�sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard -of -hearing may
<br />call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement
<br />Center, 14925 Kingsport Road, Fort Worth, TX 76155.
<br />
|