Qualifying for Disaster Recovery Assistance from the US Government

kp3028 | Nov 27, 2009 |

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Every year businesses incur losses to do natural occurrences that are declared disasters. Whether it's a hurricane, tornado, earthquake or catastrophic event the SBA (Small Business Administration) can provide financial assistance to businesses. Qualifying business can be of all sizes and be either private or non-profit organizations. Below are several types of disaster recovery loans that a company may qualify for. Specific qualifications can be obtained by visiting www.sba.gov/services/disasterassistance/index.html.

Understand that Physical Disaster Loans can be a source of funding for replacement or permanent rebuilding of uninsured or underinsured damages due to declared disasters to privately owned property. The loan limit varies.

Understand that Economic Injury Disaster Loans provide working capital until normal operations can be resumed after a declared disaster. This loan is limited to use by small businesses, small agricultural cooperatives. It is available to qualifying non profit organizations regardless of size. The intention of these loans is to provide assistance to organizations without credit from any other source, as determined by the SBA. It is to pay necessary operating expenses that the organizations would have been capable of paying had the disaster not happened.

Learn whether the Military Reservist Economic Injury Disaster Loans can help you if a necessary employee was 'called up' to active duty as a military reservist. These loans are for small businesses to provide working capital until the employee is released from their activity military duty.

For all disaster loans, the SBA has specific requirements which may not be the have the same criteria as standard SBA loans. The terms of each loan are established separately for each loan.