Office of Disaster Assistance
2013 Florida Emergency Preparedness Association
Annual Meeting and Work Session
SBA Disaster Loan Program
&
Basics of Disaster Preparedness
January 28 – February 1, 2013
History
Since 1953, when the SBA started making disaster loans, the SBA has
approved more than $50 billion in disaster loans to over 1.9 million
homeowners, renters, businesses and non-profit entities.
The SBA’s low-interest loan program was designed by Congress to
enable those affected by unforeseen catastrophic events to recover with
as little adverse impact as possible.
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History
Since 1989, the U.S. Small Business Administration’s
(SBA) Office of Disaster Assistance has approved
disaster loans for over $4 billion in Florida.
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History
Last year, following Tropical Storm
Debby, the SBA approved almost
$22.8 million in disaster loans.
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Role in Disaster Recovery
SBA’s goal is to help people recover from disasters and rebuild their lives by
providing financial assistance to homeowners, renters, businesses and nonprofit organizations of all sizes.
After hurricanes, floods, tornadoes, earthquakes, wildfires and other
disasters, the SBA is the primary source of federal funds for long-term
recovery assistance.
SBA disaster loan program features low-interest rates, generous terms and
conditions, and makes recovery less challenging.
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When Are Disaster Loans Available?
Presidential Disaster Declarations
Individual Assistance
Public Assistance
SBA Disaster Declarations
Agency or Administrative (Physical and economic injury)
Governor’s Certification (economic injury only)
Secretary of Agriculture (economic injury only)
Military Reservist (economic injury only)
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Presidential Declaration for Individual Assistance
• If the President declares a major disaster
declaration for Individual Assistance, SBA’s
disaster loan program is automatically activated.
• Homeowners, renters and businesses of all sizes
including private, non-profit organizations are
eligible to apply for their uncompensated physical
losses.
• Small businesses, small cooperatives and most
private non-profits of any size, can apply for
working capital loans to cover their economic
injury losses.
President
Barack H. Obama
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Presidential Declaration for
Public Assistance (PA)
If the President declares a major disaster declaration for
Public Assistance, SBA’s disaster loan program is activated
only for eligible private, non-profit organizations.
Administrative (Agency) Declaration
If SBA’s Administrator declares an SBA only
declaration (called an Administrative or Agency
declaration), SBA’s disaster loan program is
activated.
• Individuals and businesses are eligible.
• Usually a less substantial disaster.
• FEMA is not involved.
• There are no federal grants available.
SBA Administrator
Karen G. Mills
SBA makes an agency disaster declaration for physical damages
based on the verification of the occurrence that at least
25 homes and/or businesses that sustained
at least 40% uninsured property damage.
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Differences in Presidential
Versus Agency Declarations
The declared disaster area and eligibility is different.
In Primary Counties: Renters, homeowners and
businesses of all sizes are eligible to apply for SBA
disaster loans for physical damages. Small business
and non-profit organizations of all sizes are eligible to
apply for economic injury disaster loans.
In Contiguous Counties: The SBA’s economic injury
disaster loan program is available. Loans for physical
damages are not available to individuals or
businesses in these counties.
Presidential
declarations
In Primary Counties: Renters, homeowners and
businesses of all sizes are eligible to apply for SBA
disaster loans for physical damages. Small business are
eligible to apply for economic injury disaster loans AND
the same assistance is available to those in the
contiguous counties.
FEMA is not involved.
There are no grants available.
SBA Administrative
(Agency) declarations
Governor’s Certification
If a Governor certifies that at least five (5) small businesses in a
disaster area have suffered substantial economic injury as a
result of the disaster, and need financial assistance not available
on reasonable terms, SBA activates its Economic Injury Disaster
Loan (EIDL) program only.
Note: Physical Disaster Loans are not
available under this type of declaration
Florida Governor
Rick Scott
This declaration is for Economic Injury Disaster Loans (EIDL) only. The filing deadline is
9 months from the date of the declaration.
Secretary of Agriculture Declarations (Sec-Ag)
If the Secretary of Agriculture designates an area an
agricultural disaster, SBA automatically activates its
Economic Injury Disaster Loan (EIDL) program.
Loans are made available to eligible small
businesses, small agricultural cooperative, or
private non-profits organizations that have
suffered substantial economic injury as a
result of the declared disaster.
This declaration is for Economic Injury Disaster Loans (EIDL) only.
The filing deadline is 8 months from the date of the declaration.
Military Reservists Economic Injury Disaster Loans
(MREIDL)
Eligible small businesses that are not able to meet their ordinary
and necessary operating expenses because an “essential
employee” is called up to active duty in their role as a military
reservist can apply for an SBA Military Reservist Economic Injury
Disaster Loan.
The filing period begins the date the essential employee receives a notice of expected
call-up and ends 1 year after the date the essential employee is discharged or released
from active duty.
How Much Survivors Can Borrow?
Disaster loans are only for uninsured losses
Homeowners
 Up to $200,000 to repair/or replace primary homes
Homeowners/Renters
 Up to $40,000 for contents, including automobiles
Businesses/Non-Profits
 Up to $2M to repair/replace damaged business assets
and working capital loans to meet operating expenses
Note: Funds are also available for mitigation to prevent loss to real property.
Working capital loans are only available to small businesses, and
non-profit organizations of all sizes.
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Ways to Apply for an SBA Disaster Loan
Under a Presidential Disaster Declaration, disaster victims should first register
with FEMA by calling 1-800-621-3362 or visiting www.disasterassistance.gov.
In all other disaster declarations:
•Apply online at: https://disasterloan.sba.gov/ela/.
•Call 1-800-659-2955, or
•Visit one of the Centers in the disaster area.
Application forms are available at www.sba.gov.
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Basics of Disaster Preparedness
Why Prepare for Disasters
Disaster Response Plan
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Why Prepare for Disasters
Protect Yourself and Your Assets
Generally, it takes several years to build a successful
business and hours or minutes for a disaster to destroy it.
Businesses that are unable to access their critical data for an
extended period may have more difficulty recovering.
Disasters ruin businesses and create financial hardship on
families.
Proper preparation allows businesses to recover quickly.
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Why Prepare for Disasters
25 percent of businesses
that close after a disaster
never reopen.
-Institute for Business and Home Safety
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Why Prepare for Disasters
While 75 percent of surveyed business owners had a plan to get
employees back to work after a disaster, only 28 percent had access
to an alternative office space.
― Agility Recovery
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Disaster Response Plan
The SBA offers the following tips to help businesses prepare for
disasters:
Identify Your Needs
Determine what your operation needs to protect itself when
disaster occurs. Take steps to protect your assets even if you
don not own the business building.
Safety
Include an evacuation plan with routes and establish meeting
places and designate staff members to do a head count to
account for all employees.
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Disaster Response Plan
Insurance Coverage
Consult with a business insurance expert to advise you on the
right coverage for your situation.
When buying insurance, ask “How much can I afford to lose?”
It’s a good idea to know the value of your property.
Review your insurance coverage annually to make sure the
policy still meets your needs.
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Disaster Response Plan
Insurance Cont.
Most policies do not cover flood damage. The National Flood
Insurance Program provides this coverage. Visit www.floodsmart.gov
for more information.
Consider business interruption insurance, which compensates for lost
income if your company has to shut down after a disaster.
Alternative Work Space
Consider an alternate facility for Continuity of Operations. Ensure
you have the necessary equipments and vital records to perform
your core functions for a period of time.
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Disaster Response Plan
Documentation
Inventory your personal and business assets before the disaster
occurs.
Document the purchase date, price and estimated replacement
cost of furniture, computers, security equipment, machinery and
other property.
Regularly photograph or videotape your facility and its contents
to accurately document your business assets.
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Disaster Response Plan
Once you’ve done your inventory, arrange for off-site backup and
storage of the written record of your property and other vital records.
Computer data should be backed up routinely.
Consider professional information protection and storage companies
to provide data protection solutions.
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Disaster Response Plan
Telecommute When Possible
The nature of your business should determine if some or all your
staff could telecommute in the event your facility remains
inaccessible for an extended period.
Contact Information
 Keep emergency telephone numbers handy and designate a staff
contact persons to reach other employees, family members,
essential customers, vendors and insurance agents.
Maintain Contacts Through Website
 Post information about your business recovery plans on a website
so that vendors, suppliers and customers can stay informed.
Remain positive.
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Disaster Response Plan
Employees Awareness of Plan
Seek employees’ input.
Discuss the plan and provide copies to your staff.
Ensure everyone understands their role and knows the line of
succession.
Conduct Simulation Exercises
Periodically, test the effectiveness of the response plan with
your employees using simulation exercises.
Revise plan where necessary.
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Preparedness Tips
Preparedness tips for businesses, homeowners and renters are
available: www.sba.gov/services/disasterassistance.
Business-focused preparedness tools & information can be
found at: www.PrepareMyBusiness.org.
The federal government’s preparedness website www.ready.gov
is another helpful resource.
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Contact Information
For more information on SBA disaster assistance, contact our
Customer Service Center at:
1-800-659-2955,
Send an email to:
disastercustomerservice@sba.gov
or visit:
www.sba.gov.
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