How SBA Disaster Loans Work
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Small businesses in a Presidential disaster declaration zone have the option of applying for SBA disaster loans. Understand that it’s not immediate assistance like Red Cross or temporary housing, but a loan to help you rebuild and repair your business. Find out more about this program so that if you ever are hit by a tornado, hurricane, or massive winter storm, you are prepared to get your organization back to normal to assist the local economy.
What Information You Will Need
When applying for a SBA disaster loan, you will need to register with FEMA. Once you have that number, the SBA will require the same type of documentation that a bank or other lender would need.
- Financial information
- Employer ID number (EIN)
- Deed or lease
- Contact information for
- SSNs for all applicants
- Tax information
Fortunately, after a disaster, the SBA offers personal assistance at the Disaster Recovery Centers. You can also apply online for fastest service. Having your data stored in a cloud makes it easily accessible if you’ve lost computers and access to paperwork in your office.
What Does It Cover?
SBA disaster loans are designed to cover your uninsured physical damages. You may have to apply your insurance to an outstanding mortgage instead of being able to use it to rebuild. Let the loan program know this in your application. You can use the money received from the SBA loan to replace or repair property, machinery, fixtures, and inventory. Making improvements to damaged property against possible future disasters could increase your loan by up to 20%.
After Your Application Is ReceivedSource: allpurposelenders.com