Adequate recovery from disaster and access to resources go hand in hand. Homeowners and businesses impacted by the tornado leveling Rolling Fork last month might not know exactly where to turn to start the rebuilding process or to recoup lost revenue. In situations like these, the Small Business Administration has the resources and partnerships to ease the recovery process. More specifically, the SBA’s Office of Disaster Recovery has dispatched public affairs specialists to help local people navigate the application processes. Individual homeowners and renters may apply for the SBA Disaster Assistance loan.
“Homeowners, businesses, renters and nonprofits of all sizes may be eligible for long term low interest loans to cover damage to their homes, for their businesses, facilities, personal property and business content,” said public affairs specialist, Emily Michie “ Renters and homeowners are eligible for loans to cover their personal property.”
“A lot of people will get money for their vehicles. Anything that was damaged by the tornado,public affairs specialist, Laurie Dana added. “It could be clothing, furniture…”
Businesses apply through a program called the Economic Injury Disaster Loan (EIDL).
“That is to cover working capital,.. that is if disasters have impacted businesses’ ability to cover their expenses, if they’ve had a loss of revenue… those are the things that the EIDL program would cover,” Michie explained.
Businesses in contiguous counties may also be eligible particularly if they do business in the impacted areas. “Let’s say you live in a neighboring county and your power went off because of the storm and it affected your business,” Dana said. “Then, you may be eligible for EIDL funds. The cap on loan amounts are $2 million for businesses, $200,000 for homeowners, and $40,00 for renters.”
The Small Business Administration’s presence also represents a partnership with the Federal Emergency Management Agency (FEMA). The partnership is designed to create a seamless process so that applicants will be able to determine what all they are eligible for.
“For homeowners and renters, the first step is to register with FEMA,” Michie explained. “They can do that in person, at a disaster recovery center, and I think they can also register with FEMA online. FEMA will refer them to the SBA. From there, they can complete the SBA application in person or online or at a disaster recovery center. If they are approved, they are under no obligation to take it. If they are declined, they can go back to FEMA for an additional needs assessment. And they may be eligible for more grants if they are declined for an SBA loan.”
The application process requires some basic documentation for individuals and businesses. Homeowners and renters are required to have a valid ID, a social security number and a cellphone contact number. Businesses need a good contact number, social security numbers and entity identification numbers (EIN) financial information such as account balances, income, monthly expenses and the most recent federal income tax return. Processing time tends to be fairly quick.
“Well… I know that from some of the DRC’s (Disaster Recovery Centers) I’ve been hearing that people know right away or at least if they are declined they know right away,” Michie said.
“Actually the process takes about three to four weeks on average,” Dana said “It could take sooner or longer because it’s on a case by case basis. Some take a little longer because there might be more paperwork involved and sometimes more processing. And they shouldn’t wait for their insurance to settle because it may take longer.”
SBA stands ready for a pretty good amount of time to assist with disaster recovery needs. However, each passing day is a reminder that time is of the essence to apply.
“We got here a couple of days after the tornado and we will be here for the duration.
We’ve approved $10.4 as of today,” Michie said. “For homeowners and businesses owners, I’d like to stress that completing the FEMA applications is the first step to completing the loop to having access to everything else. They have to apply to be eligible for any other grants from FEMA.” The deadline to apply for either of the two programs is May 26. For more information call (800) 659-2955 or visit sba.gov/disaster.
