Economic Injury Disaster Loans

 

To assist business concerns suffering economic injury as a result of Presidential, Small Business Administration (SBA), and/or Secretary of Agriculture declared disasters.

Deleted 02/14/2008 (Duplicated under 59.008) 59.002 SMALL BUSINESS ADMINISTRATION Direct Loans; Guaranteed/Insured Loans (including Immediate Participation Loans). During fiscal year 2001, an estimated 3,908 loans were made for $147,089,200. Small Business Act of 1953, as amended, Section 7(b)(2), Public Law 85-536, 15 U.S.C. 636(b); Disaster Relief Act of 1970, Sections 231, 234, 235, and 237; Public Law 91-606; Public Laws 92-385, 93-24, 94-68, 94-305, 95-89, 96-38, 96-302, 97-35, 98-166, 98- 270, 98-473, 99-272, 99-349, 100-220, 100-590, 102-27, and 103-75. Eligible applicant must be: A small business concern, small agricultural cooperative or a nursery victim of drought as defined in SBA rules and regulations; furnish evidence of the cause and extent of economic injury claimed and unable to obtain credit elsewhere; and must be located within declared disaster area. Small businesses and small agricultural cooperatives benefit. Financial Statements to prove cause and extent of economic injury, establish eligibility and demonstrate repayment ability. A signed IRS Form 8821 to enable SBA to obtain information from IRS and complete copies of Federal tax returns for the past 3 prior years. This program is excluded from coverage under E.O. 12372. Generally pre-application interviews are held to acquaint applicant with general approach to establishing eligibility and what assistance may be available. Applications are filed with the nearest available SBA disaster area office or special disaster field office. One copy of SBA Form 5 and Form 1368 are provided for this purpose. Applicant is notified of approval by authorization letter from SBA disaster office. Deadlines are established for each declaration. From 7 to 21 days depending on complexity of case and availability of resources. Requests for reconsideration of a declined application may be made within 6 months of the initial decline action; 30 days from the reconsideration decline action. Not applicable. Not applicable. Up to 30 years for repayment. A $1,500,000 limit on amount: actual economic injury governs. Funds not provided merely because of lost income or lost profits. Funds can be provided to pay liabilities which the small concern could have paid if the disaster had not occurred. Working capital for limited period can be provided to continue the business in operation until conditions return to normal. No funds available for realty, equipment repair or acquisition: the interest rate is not to exceed 4 percent. Documentation of use of proceeds and financial statements must be maintained by borrower. Audits are required only in questionable cases where funds are used contrary to conditions under which they were authorized. Complete financial records must be maintained. Not applicable. Funds must be used within 6 months of authorization of the loan, unless extended. For reference to the Disaster Area Office, see Appendix IV of the Catalog under the Small Business Administration. Office of Disaster Assistance, Small Business Administration, 409 3rd Street, SW., Washington, DC 20416. Program Contact: Herbert Mitchell. Telephone: (202) 205-6734. Use the same number for FTS. E-Mail address: disaster.assistance@sba.gov. http://www.sba.gov/DISASTER 73-1152-0-1-453. (Loans) Not separately identifiable. (Note: Obligations for 59.002 are combined with obligations reported under 59.008.) Direct loans: Up to $1,500,000. Average: $76,200. 13 CFR Part 123; "Economic Injury Disaster Loans for Small Business," DA-3. Not applicable.