Disaster Recovery Loans

The wildfires of 2014 remind us of the potential for calamity to strike our communities. Hopefully, you will not have suffered personal or business losses and can pass this information on to someone else.   Federal disaster recovery loans should be considers as a backup to hazard insurance. To cover the gap between the insurance coverage and actual costs. After all even with low interest it is still a loan.

Small Business Administration (SBA) Disaster Recovery Loans are direct from SBA and not issued through a bank. Loans are available for repair or reconstruction of your home or business assets or to help cover lost sales.  For information on agricultural disaster recovery programs contact the local USDA Farm Services Agency.

Preparing to apply for a disaster recovery loan will help the process move quickly by avoiding delays for missing information.  Adequate financial documentation is a priority. Thus, start by assembling as many o the following documents as possible:

• For Home and Personal Property or Business Physical Damage Loan 
• Legal property descriptions and pre-disaster values  
• List and descriptions of personal or business property lost 
• Insurance policies, whats covered and how much
• Location and directions for a property inspection
• Pictures, before the disaster to document what existed, particularly helpful for replacement of personal or business assets
• For Economic Injury Loans  
• Business tax forms for all federal and state taxes paid to prove past sales 
• Sales reports for prior years to demonstrate the difference ins same period sales before-during-after the disaster
• A monthly cash flow budget from the period of the disaster until business has recovered lost sales 
• Operation Expenses that must be paid during and after the disaster
• Authorisation for SBA to verify your federal taxes with a signed IRS Form 8821

Usually after a federal disaster SBA will set up a local assistance office to answer questions and help prepare the loan application.  The fastest way to receive a decision is to apply online online for SBA's disaster assistance loans.