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DISASTER NEWS: Tennessee Wildfires

SBA Offers Disaster Assistance to Residents of Tennessee Affected by Wildfires and Disaster Loans Fact Sheet
Release Date: 
Friday, December 16, 2016
Release Number: 
17-231 TN 15014/15015 (revised)
Contact: 
Michael Lampton (404) 331-0333 Michael.Lampton@sba.gov

 

 

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           DISASTER NEWS

       Loans for Businesses of all Sizes, Homeowners and Renters

SBA Disaster Assistance – Field Operations Center- East – 101 Marietta Street, NW, Suite 700, Atlanta, GA  30303

_________________________________________________________________________________________________________

Release Date:  Dec. 16, 2016                                                               Contact:  Michael Lampton

Release Number: 17-231 TN 15014/15015                                      Email: Michael.Lampton@sba.gov

                                                                                                                  Phone:  (404) 331-0333

 

SBA Offers Disaster Assistance to Residents of Tennessee

Affected by Wildfires
 

WASHINGTON – The U.S. Small Business Administration’s Administrator Maria
Contreras-Sweet issued the following statement after the announcement of the Presidential disaster declaration for Sevier County, Tennessee affected by wildfires on
Nov. 28 – Dec. 9, 2016:

 

“The U.S. Small Business Administration is strongly committed to providing the people of Tennessee with the most effective and customer-focused response possible to assist businesses, homeowners and renters with federal disaster loans. Getting businesses and communities up and running after a disaster is our highest priority at the SBA.”

 

The disaster declaration covers Sevier County in Tennessee which is eligible for both Physical and Economic Injury Disaster Loans from the SBA.  Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans: Blount, Cocke, Jefferson and Knox in Tennessee; Haywood and Swain counties in North Carolina.

 

Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.  Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes.  Eligible mitigation improvements may now include a safe room or storm shelter to help protect property and occupants from future damage caused by a similar disaster.

 

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster.  Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

 

Disaster loans up to $200,000 are available to homeowners to repair or replace disaster damaged or destroyed real estate.  Homeowners and renters are eligible up to $40,000 to repair or replace disaster damaged or destroyed personal property.

Interest rates are as low as 3.125 percent for businesses  and 2.5 percent for nonprofit organizations 1.5 percent for homeowners and renters with terms up to 30 years.  Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

 

Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website at https://disasterloan.sba.gov/ela.

 

To be considered for all forms of disaster assistance, applicants should register online at www.DisasterAssistance.gov or download the FEMA mobile app.  If online or mobile access is unavailable, applicants should call the FEMA toll-free helpline at 800-621-3362. Those who use 711-Relay or Video Relay Services should call 800-621-3362.

 

Additional details on the locations of Disaster Recovery Centers and the loan application process can be obtained by calling the SBA Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an e-mail to disastercustomerservice@sba.gov

 

The filing deadline to return applications for physical property damage is Feb. 12, 2017.  The deadline to return economic injury applications is Sept. 15, 2017.

 

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For more information about the SBA’s Disaster Loan Program, visit our website at www.sba.gov/disaster.

 

 

 

 

Date: 12/15/2016

U. S. SMALL BUSINESS ADMINISTRATION

FACT SHEET - DISASTER LOANS

TENNESSEE Declaration 15014 & 15015
(Disaster: TN-00099)
Incident: WILDFIRES

occurring: November 28, 2016 through December 9, 2016

Application Filing Deadlines:
Physical Damage: February 13, 2017 Economic Injury: September 15, 2017

 

If you are located in a declared disaster area, you may be eligible for financial assistance from
the U. S. Small Business Administration (SBA).

What Types of Disaster Loans are Available?

• Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged
property owned by the business, including real estate, inventories, supplies, machinery and
equipment. Businesses of any size are eligible. Private, non-profit organizations such as
charities, churches, private universities, etc., are also eligible.
• Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small
agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit
organizations of all sizes meet their ordinary and necessary financial obligations that cannot be
met as a direct result of the disaster. These loans are intended to assist through the disaster
recovery period.
• Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real
estate and personal property, including automobiles.

What are the Credit Requirements?

•      Credit History – Applicants must have a credit history acceptable to SBA.
•      Repayment – Applicants must show the ability to repay all loans.
•      Collateral – Collateral is required for physical loss loans over $25,000 and all EIDL loans
       over $25,000.  SBA takes real estate as collateral when it is available.  SBA will not decline a
       loan for lack of collateral, but requires you to pledge what is available.

What are the Interest Rates?

By law, the interest rates depend on whether each applicant has Credit Available Elsewhere. An
applicant does not have Credit Available Elsewhere when SBA determines the applicant does not have
sufficient funds or other resources, or the ability to borrow from non-government sources, to
provide for its own disaster recovery. An applicant, which SBA determines to have the ability to
provide for his or her own recovery is deemed to have Credit Available Elsewhere. Interest rates
are fixed for the term of the loan. The interest rates applicable for this disaster are:

 

No Credit Available         Credit Available

Elsewhere                     Elsewhere

Business Loans                                                             3.125%                      6.250%
Non-Profit Organization Loans                                  2.500%                      2.500%

Economic Injury Loans
     Businesses and Small Agricultural Cooperatives  3.125%                    N/A

     Non-Profit Organizations                                          2.500%                    N/A

Home Loans                                                                   1.500%                    3.000%

 

What are Loan Terms?

The law authorizes loan terms up to a maximum of 30 years. However, the law restricts businesses
with credit available elsewhere to a maximum 7-year term. SBA sets the installment payment amount
and corresponding maturity based upon each borrower’s ability to repay.

What are the Loan Amount Limits?

Business Loans – The law limits business loans to $2,000,000 for the repair or replacement of
  real estate, inventories, machinery, equipment and all other physical losses. Subject to this
  maximum, loan amounts cannot exceed the verified uninsured disaster loss.

Economic Injury Disaster Loans (EIDL) – The law limits EIDLs to $2,000,000 for alleviating
  economic injury caused by the disaster. The actual amount of each loan is limited to the economic
  injury determined by SBA, less business interruption insurance and other recoveries up to the
  administrative lending limit. EIDL assistance is available only to entities and their owners who
  cannot provide for their own recovery from non-government sources, as determined by the U.S. Small
  Business Administration.

Business Loan Ceiling – The $2,000,000 statutory limit for business loans applies to the
  combination of physical, economic injury, mitigation and refinancing, and applies to all disaster
  loans to a business and its affiliates for each disaster. If a business is a major source of
  employment, SBA has the authority to waive the $2,000,000 statutory limit.

• Home Loans – SBA regulations limit home loans to $200,000 for the repair or replacement of
  real estate and $40,000 to repair or replace personal property. Subject to these maximums, loan
  amounts cannot exceed the verified uninsured disaster loss.

What Restrictions are there on Loan Eligibility?

• Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible.  Any
  insurance proceeds which are required to be applied against outstanding mortgages are not available
  to fund disaster repairs and do not reduce loan eligibility.  However, any insurance proceeds
  voluntarily applied to any outstanding mortgages do reduce loan eligibility.

Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles
  and similar property are not eligible, unless used for business purposes. Property such as antiques
  and collections are eligible only to the extent of their functional value.  Amounts for
  landscaping, swimming pools, etc., are limited.

Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be
  eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous
  SBA loans.

Note: Loan applicants should check with agencies / organizations administering any grant or other
assistance program under this declaration to determine how an approval of SBA disaster loan might
affect their eligibility.

Is There Help with Funding Mitigation Improvements?

If your loan application is approved, you may be eligible for additional funds to cover the cost of
improvements that will protect your property against future damage. Examples of improvements
include retaining walls, seawalls, sump  pumps,  safe  rooms,  etc. Mitigation loan money 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 property, including leasehold improvements, and personal property as
verified by SBA to a maximum of
$200,000 for home loans. It is not necessary for the description of improvements and cost estimates
to be submitted with the application.  SBA approval of the mitigating measures will be required
before any loan increase.

Is There Help Available for Refinancing?

• SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the
  applicant (1) does not have credit available elsewhere, (2) has suffered substantial uncompensated
  disaster damage (40 percent or more of the value of the property or 50% or more of the value of the
  structure), and (3) intends to repair the damage.

Businesses – Business owners may be eligible for the refinancing of existing mortgages or liens
  on real estate, machinery and equipment, up to the amount of the loan for the repair or replacement
  of real estate, machinery, and equipment.

Homes – Homeowners may be eligible for the refinancing of existing liens or mortgages on homes,
  up to the amount of the loan for real estate repair or replacement.

What if I Decide to Relocate?
You may use your SBA disaster loan to relocate.  The amount of the relocation loan depends on
whether you relocate voluntarily or involuntarily. If you are interested in relocation, an SBA
representative can provide you with more details on your specific situation.

Are There Insurance Requirements for Loans?
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate
insurance. By law, borrowers whose damaged or collateral property is located in a special flood
hazard area must purchase and maintain flood insurance. SBA 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 maximum insurance available.

 

For more information, contact SBA’s Disaster Assistance Customer Service Center by calling (800) 659-2955, emailing   disastercustomerservice@sba.gov, or visiting SBA’s Web site at http://www.sba.gov/disaster. Deaf and hard-of-hearing individuals may call (800) 877-8339. Applicants may also apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.

 

Related State: 
North Carolina