Disaster Assistance Recovery
Has your business been impacted by a recent natural disaster? To better assist your business in getting the necessary assistance, please first register your small business with FEMA and/or SBA.
FEMA Online Application
SBA Online Application
SBDC advisors are available to assist you with development of a Small Business Disaster Recovery Action Plan, including the reconstruction of your financial position if you do not have access to the financial documentation of your business. If you would like assistance on this matter, please click on the link below and someone from our SBDC office will be in contact.
Online Disaster Assistance Application (SBDC)
DISASTER LOAN FREQUENTLY ASKED QUESTIONS
What information must I submit for a disaster loan?
Submit a completed loan application and a signed and dated IRS form 8821 giving permission for the IRS to provide the SBA your tax return information. To process your application we (SBA) need current financial information such as a personal financial statement, a current profit-and-loss statement, balance sheet and a list of debts.
Can I use the disaster loan to expand my business?
The disaster loan helps restore property to pre-disaster condition, and, under certain circumstances, protects the structure from future disasters. It cannot upgrade or expand a business unless required by local building codes.
I already have a mortgage on my business.
Can the SBA refinance my mortgage?
The SBA can refinance all or part of a previous mortgage in some cases when the applicant does not have credit available elsewhere, has suffered uninsured damage (40 percent or more of the property value), and intends to repair the damage. SBA disaster loan officers can provide additional details.
How soon before I know I’ve been approved for a loan?
The sooner you return the completed loan application, the sooner the SBA can process it. The SBA tries to make a decision within two to three weeks. Make sure the application is complete. Missing information is a major cause of delays.
Is collateral required for these loans?
In a Presidential declaration, physical business loans over $25,000 must be secured to the extent possible. For Agency declarations, physical business loans over $14,000 must be secured to the extent possible. All EIDL loans over $25,000 must be secured to the extent possible.
Should I wait for my insurance settlement before I file my loan application?
No. Don’t miss the filing deadline by waiting for an insurance settlement. Final insurance information can be added when a settlement is made. The SBA can approve a loan for the total replacement cost, but any insurance proceeds that duplicate SBA’s loan must be applied to your SBA loan.
How may I use an Economic Injury Disaster Loan?
The loan provides working capital for disaster-related needs until your business or private, non-profit organization recovers. You may request an EIDL for the amount of economic injury but not in excess of what your business or private, non-profit organization could have paid if the disaster had not occurred. EIDL loans cannot
refinance longterm debts or provide working capital needed before the disaster. EIDL loans do not replace sales or lost profits.
Must I submit a personal financial statement with my loan application?
Yes. The SBA must review a financial statement for each owner and one for each partner, officer, director and stockholder with 20 percent or more ownership. The SBA requires the principals of the business to personally guarantee repayment of the loan, and in some instances to secure the loan by pledging additional collateral.
While coastal communities are typically the most vulnerable to tropical weather activity it’s important to remember that tropical storm systems can move hundreds of miles inland and have an impact on the entire state. The outer bands of 2010’s Hurricane Alex hit the furthest south points of Texas at a relatively mild 51mph accompanied by 6-9 inches of rain. Yet over the following days the remainder of the storm caused record flooding along its western boundaries, including over 200 miles of the Rio Grande River, as well as record rainfall in Houston – 350 miles to the east. Hurricanes can produce dangerous winds, storm surge, torrential rain, serious inland flooding and tornadoes posing a serious hazard to people, property and business activities.
What can you do before the storm?
- Learn about the hurricane risk for your general community, your industry, your specific location
- Contact local authorities
- Develop an evacuation plan
- Review flood safety & preparedness
- Assemble a Disaster Supplies Kit
- Assess your insurance needs
Examine all of your internal and external resources as you plan.
Ask about your community's emergency preparedness plan. The local emergency management office or local chapter of the American Red Cross should be able to provide you with details of this plan, including information on the safest evacuation routes, nearby shelters, and what conditions are necessary for recommended evacuation of certain areas.
Talk to your insurance agent. Remember – insurance is a service not a tax. Your insurance agent is an excellent resource for risk management information. Ask for information on the National Flood Insurance Program (NFIP) as well as Windstorm Insurance. You can find additional resources from the Texas Department of Insurance here.
Find up to date local weather information for your community through the National Weather Service’s Southern Region Headquarters map: http://www.srh.noaa.gov/ .
Hurricanes may not be an imminent hazard for your business or employees. But chances are that every community and every business will experience some sort of emergency within any given year. Emergency Preparedness is about examining your processes and taking steps to protect your employees and business assets. Visit our Small Business Emergency Preparedness information page at http://ptac.txsbdc.org/?s=emergency+preparedness&x=0&y=0 for additional resources and download the SBEP Brochure to build your Ready Kit. Taking some simple steps can help you protect your business and be Ready for Anything!
If you have more specific questions about Emergency Preparedness Planning or any other Human Resource related issues please contact Deirdre Pattillo, SPHR – Project Manager for Employer Services at the UTSA SBDC PTAC at Deirdre.Pattillo@utsa.edu .