EMW stands ready to help you file for SBA and FEMA Disaster Recovery Loans
If you own business there is financial help available for you. Finding the financial help you need and applying for those loans and grants can be a daunting task. Darlene K. Gregory, MA, MBA, President of EMW Productions has the experience and contacts to get you the help you need.
How to Get an SBA Disaster Loan After Hurricane Harvey
Business owners learn early that there will always be setbacks. Hurricane Harvey is an example of how these setbacks can rarely be avoided. Every Disaster Recovery Plan should consider the programs administered by the Small Business Administration (SBA). The top 6 questions need to be answered and EMW is prepared to walk you through the process from start to finish. FEMA has already declared the affected areas thanks to Governor Abbott's disaster declaration prior to the hurricane coming ashore. FEMA reports:
Incident: Texas Hurricane Harvey (DR-4332)
Incident Period: August 23, 2017
Major Disaster Declaration declared on August 25, 2017
Individual Assistance Applications Approved: 45,693
Total Individual & Households Program Dollars Approved: $23,513,955.04
Designated Counties (Individual Assistance): Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria, Wharton
Since there is a limited amount of applications being accepted and a limited amount of funds available you need to get your application in immediately.
Am I Eligible?
The short answer is YES you are eligible. If you live or have a business in any of the following counties you are most likely eligible. Designated Counties (Individual Assistance): Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria, Wharton, Colorado, Jefferson, Montgomery, Waller, and additionally counties are still being assigned!
What Expenses Are Covered?
The loans issued by the SBA are to be used for business-related expenses with one exception — there is a disaster loan option for homeowners and renters (no business holdings required) that caps at $200,000. There is also a program available to help with times of economic loss for businesses. Businesses who were unable to pay bills or meet financial obligations may qualify for working capital (Economic Injury Disaster Loans) to help get you through until your business is up and running again.
The funds from an SBA loan can only be used to pay for uninsured damages to your business and company property. However, if you need to improve your repaired or replaced property to avoid future damages, you can usually get 20% more than original value cost with a loan. You can also use loan proceeds to cover outstanding mortgage payments for damaged, insured property. EMW knows exacly how to structure your loan package to account for and get approvals to use such funds from the loan.
How Do I Apply?
You should immediately apply for assistance once you know that you are eligible for funds. Business owners can start the application at the SBA website, which is the fastest way to receive a determination. A business of any size (including agricultural co-ops and private nonprofits) can apply for up to $2 million in loans for economic loss; businesses may also apply for up to $2 million in physical damages. Both loans cannot exceed the maximum of $2 million in total funding
You’ll need the following items to fill out your application:
There may be additional items requested that are specific to your business or situation. The SBA may ask for more in-depth records for any of the above, at any point in the loan application. EMW can assist you in creating or recovering the required documentation. EMW recommends that you keep digital copies of pertinent records on hand to assist with application needs.
When Will I Get Approval?
The process of getting a SBA loan can take some time to go through the proper channels. EMW can quickly determine whether or not your loan is likely to be approved or not. During your loan review, EMW and the SBA will check your business credit history, and potentially your personal credit history, to see if you are a good risk for the loan. The SBA will require any principals of the business to personally guarantee the loan — that means if you default, your personal credit scores could be at risk. They will also inspect the business property to estimate the value of damages. After insurance coverage and applicant’s eligibility are reviewed, a loan offer will be made to qualified business owners within 2-3 weeks from the application date. (Insurance review and payments do not have to be finalized for the loan to proceed.)
When Will I Get Funds?
Once the loan has been approved and the required document signed, your initial disbursement can be made within five days. This first payment can range from $14,000 to $25,000 and will depend on the total loan amount. EMW will work closely with your SBA assigned loan officer to help the business owner get access to the remaining loan amount, including adjustments made for unexpected additional damages that may need to be covered.
Don’t Delay in Asking for Help