Small Business: SBA on site to provide disaster relief for storm victims

|tab|

Sam Jones is the Region VII SBA Administrator.|ret||ret||tab|

|ret||ret||tab|

At first light May 5, the U.S. Small Business Administration was in action, paving the way for disaster assistance to flow into southwest Missouri.|ret||ret||tab|

As regional administrator, my first call was to the Area 3 SBA Disaster Office in Fort Worth, Texas, urging that an expedited disaster declaration be sought. By noon, I had done an aerial survey of Battlefield, Stockton and Pierce City and e-mailed pictures to the Disaster Office.|ret||ret||tab|

The normal procedure is to dispatch Preliminary Damage Assessment Teams into the stricken area and, based on their report, apply for a disaster declaration. My message to Fort Worth was, "I have at least two communities with the entire commercial district wiped out. We don't need an assessment to declare a disaster." |ret||ret||tab|

Others who gave first-hand reports, particularly from Stockton and Pierce City, echoed that message. As a result, an expedited disaster declaration was obtained in less than 48 hours. Federal Emergency Management Agency and U.S. Small Business Administration Disaster Recovery centers began full operation, with disaster recovery loan applications being processed and the first approvals were obtained within the week. |ret||ret||tab|

Businesses needing assistance without regard to size of the business, real estate, machinery, equipment, inventory or other physical property losses are urged to apply for a Business Physical Disaster Loan. Nonprofit organizations such as charities, churches and private schools are also eligible. For businesses and small agricultural cooperatives needing working capital, but having no other access to capital, Economic Injury Disaster Loans are available. |ret||ret||tab|

Both business and EIDL loans from SBA are just that loans. Repayment is expected, albeit on very favorable terms. A business or EIDL loan to cover uninsured loses can be for up to $1.5 million amortized over up to 30 years for borrowers without access to other credit or three years for those having other credit available. |ret||ret||tab|

Interest rates depend, in some measure, on the ability of the disaster victim to obtain credit elsewhere. For those with credit available elsewhere, the rate is 5.906 percent. If the borrower has no other credit available, the rate is 2.953 percent. Collateral, to the extent available, is required for EIDL loans over $5,000 or business loans over $10,000, but full collateral is not required.|ret||ret||tab|

Homeowners and renters can apply for Home Disaster Loans to repair or replace damaged real estate or personal property. A homeowner may borrow up to $200,000 to replace or repair uninsured damage to a residence and an additional $200,000 if refinancing is necessary. The repayment period is up to 30 years and interest rates are either 5.625 percent or 2.812 percent, depending on whether the borrower has credit available elsewhere.|ret||ret||tab|

SBA can refinance an existing mortgage where the applicant does not have credit elsewhere, has suffered substantial uninsured disaster damage (40 percent or more of the value of the property) and intends to repair the damage.|ret||ret||tab|

If an applicant is unable to demonstrate an ability to repay an SBA disaster loan, SBA Disaster Recovery Center loan officers will refer the applicant to FEMA and its grant programs.|ret||ret||tab|

The first Disaster Recovery Centers, operated jointly by FEMA and SBA, were opened May 12 in Battlefield, Pierce City, Stockton and Carl Junction. The four centers will serve these cities and then move east following the path of destruction until the last damaged community is served. An area office is open in Springfield.|ret||ret||tab|

More information on SBA disaster assistance can be obtained by calling the Fort Worth Area 3 Disaster Office at 800-366-6303 or on the SBA Web site at www.sba.gov/disaster.|ret||ret||tab|

[[In-content Ad]]