If you are located in a declared disaster area, you may be eligible for financial assistance from the U. S. Small Business Administration (SBA).
What are the Credit Requirements?
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay all loans.
• Collateral – Collateral is required for physical loss loans over $25,000 and all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.
There are 3 main types on loans the SBA is offering:
1) Home Disaster Loans
Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.
2) Business Physical Disaster Loans
Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.
3) Economic Injury Disaster Loans (EIDL)
Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
If you have suffered substantial economic injury and are one of the following types of businesses located in a declared disaster area ,you may be eligible for an SBA Economic Injury Disaster Loan (EIDL):
Loan Amounts and Use:
Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.
The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.
Eligibility and Terms:
The interest rate on EIDLs will not exceed 4 percent per year. The term of these loans will not exceed 30 years. The repayment term will be determined by your ability to repay the loan.
EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
A business may qualify for both an EIDL and a physical disaster loan. The maximum combined loan amount is $2 million.
Loan Amounts and Use:
SBA makes physical disaster loans of up to $2 million to qualified businesses or most private nonprofit organizations. These loan proceeds may be used for the repair or replacement of the following:* Real property* Machinery* Equipment* Fixtures* Inventory* Leasehold improvementsThe SBA Business Physical Disaster Loan covers disaster losses not fully covered by insurance. If you are required to apply insurance proceeds to an outstanding mortgage on the damaged property, you can include that amount in your disaster loan application.
If you make improvements that help reduce the risk of future property damage caused by a similar disaster, you may be eligible for up to a 20 percent loan amount increase above the real estate damage, as verified by the SBA.
You may not use the disaster loan to upgrade or expand a business, except as required by building codes.
Eligibility and Terms:
A business of any size or most private nonprofit organizations that are located in a declared disaster area and have incurred damage during the disaster, may apply for a loan to help replace damaged property or restore its pre-disaster condition.
The interest rate will not exceed 4 percent if you cannot obtain credit elsewhere. For businesses and nonprofit organizations with credit available elsewhere, the interest rate will not exceed 8 percent. SBA determines whether the applicant has credit available elsewhere. Repayment terms can be up to 30 years, depending on your ability to repay the loan.
Loan Amounts and Use
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Homeowners may apply for up to $200,000 to replace or repair their primary residence. The loans may not be used to upgrade homes or make additions, unless required by local building code. If you make improvements that help prevent the risk of future property damage caused by a similar disaster, you may be eligible for up to a 20 percent loan amount increase above the real estate damage, as verified by the SBA.
Eligibility and Terms
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Secondary homes or vacation properties are not eligible for these loans. However, qualified rental properties may be eligible for assistance under the SBA business disaster loan program. Proceeds from insurance coverage on your home or property will be deducted from the total damage estimate to determine the eligible loan amount. The SBA is not permitted to duplicate any benefits.
For applicants unable to obtain credit elsewhere, the interest rate will not exceed 4 percent. For those who can obtain credit elsewhere, the interest rate will not exceed 8 percent. The SBA will determine whether an applicant can obtain credit elsewhere.
SBA disaster loans are offered with up to 30-year terms.
Home loans for more than $25,000 in Presidential and Agency declarations must be secured with collateral to the extent possible. The SBA will ask the applicant for available collateral, but will not decline a loan for lack of collateral. A first or second mortgage on the damaged real estate is commonly used as collateral for an SBA disaster loan.
Tax Records
Visit the Get Transcript page on IRS.gov.
You can choose to get your transcript online or by mail.
FOR PROPERTY DAMAGE LOANS (BUSINESS AND PERSONAL)
Personal Residence and Real Property
Real property, also called real estate, is land as well as generally anything built on, growing on, or attached to land.
Take photographs or videos as soon after the disaster as possible. This helps establish the extent of the damage.
Contact the title company, escrow company or bank that handled the purchase of the home to get copies of appropriate documents. Real estate brokers may also be able to help.
Use the current property tax statement for land-versus-building ratios if available. If they are not available, owners can usually get copies from the county assessor’s office.
Establish a basis or fair market value of the home by reviewing comparable sales within the same neighborhood. This information can be found by contacting an appraisal company or visiting a website that provides home valuations.
Check with the mortgage company for copies of appraisals or other information they may have about cost or fair market value in the area.
It’s important for homeowners and businesses to review their insurance policies regularly, especially after a disaster, as policies often list the value of the building, providing a key figure for determining replacement cost coverage. This figure helps establish the amount of insurance needed to rebuild or repair the property after damage.
To verify coverage, including replacement costs and other specific policy details, it’s recommended to contact your insurance company directly. If you’re unsure how to reach your provider or need help resolving claims issues, you can check with the Florida Department of Financial Services or the state’s Office of Insurance Regulation (OIR). These agencies can provide contact information for your insurance company, help with filing complaints, and offer guidance on understanding your policy and rights as a policyholder.
You can visit the Florida Office of Insurance Regulation website at www.floir.com or call their consumer helpline at 1-877-693-5236 for assistance.
If improvements were made to the home, contact the contractors who did the work to see if records are available. If possible, get statements from the contractors verifying their work and cost.
Get written accounts from friends and relatives who saw the house before and after any improvements. See if any of them have photos taken at get-togethers.If there is a home improvement loan, get paperwork from the institution that issued the loan. The amount of the loan may help establish the cost of the improvements.
For inherited property, check court records for probate values. If a trust or estate existed, contact the attorney who handled the estate or trust.If no other records are available, check the county assessor’s office for old records that might address the value of the property.
Vehicles
There are several resources that can help determine the current fair market value of most cars on the road. These resources are all available online and at most libraries:
Kelley’s Blue Book National Automobile Dealers Association EdmundsAdditionally, call the dealer where the car was purchased and ask for a copy of the contract. If this is not available, give the dealer all the facts and details, and ask for a comparable price figure. If making payments on the car, check with the lien holder.
Personal Property
It can be difficult to reconstruct records showing the fair market value of some types of personal property. Here are some things to consider when cataloguing lost items and their values:
Look on mobile phones for pictures that were taken in the home that might show the damaged property in the background before the disaster.
Check websites that can help establish the cost and fair market value of lost items.
Support the valuation with photographs, videos, canceled checks, receipts or other evidence.
If items were purchased using a credit card or debit card, contact the credit card company or bank for past statements. Credit card companies and banks often provide user’s access to these statements online.
If there are no photos or videos of the property, a simple method to help remember what items were lost is to sketch pictures of each room that was impacted:
Draw a floor plan showing where each piece of furniture was placed – include drawers, dressers and shelves.
Sketch pictures of the room looking toward any shelves or tables showing their contents…..These do not have to be professionally drawn, just functional….Take time to draw shelves with memorabilia on them… Be sure to include garages, attics, closets, basements and items on walls.
Business Records For Physical Damage
To create a list of lost inventories, get copies of invoices from suppliers. Whenever possible, the invoices should date back at least one calendar year.Check mobile phones or other cameras for pictures and videos taken of buildings, equipment and inventory.
For information about income, get copies of bank statements. The deposits should closely reflect what the sales were for any given time period.
Get copies of last year’s federal, state and local tax returns. This includes sales tax reports, payroll tax returns and business licenses from the city or county. These will reflect gross sales for a given time period.
If there are no photographs or videos available, sketch an outline of the inside and outside of the business location. Then start to fill in the details of the sketches. For example, for the inside of the building, record where equipment and inventory was located. For the outside of the building, map out the locations of items such as shrubs, parking, signs and awnings.
If the business was pre-existing, go back to the broker for a copy of the purchase agreement. This should detail what was acquired.
If the building was newly constructed, contact the contractor or a planning commission for building plans.
Figuring Loss
Taxpayers may need to reconstruct their records to prove a loss and the amount of the loss.
To compute loss, determine the following figures:
The decrease in fair market value of the property that resulted from the casualty or disaster.
The adjusted basis of the property – this is generally what was paid for the property, increased or decreased, because of certain events.
Taxpayers can deduct the lesser of the two amounts, after subtracting any insurance or other reimbursements received. Additionally, certain limits apply to these deductions. For more information on these limits, refer to Publication 547: Casualties, Disasters, and Thefts. For details on determining the basis of assets, consult Publication 551: Basis of Assets.
If a casualty loss deduction results in a taxpayer’s total deductions exceeding their income for the year, it may create a net operating loss (NOL). For further details, refer to Publication 536: Net Operating Losses (NOLs) for Individuals, Estates, and Trusts.
Determining the Decrease in Fair Market Value
Fair market value (FMV) is generally the price for which the property could be sold to a willing buyer. The decrease in FMV used to figure the amount of a casualty loss is the difference between the property’s fair market value immediately before and after the casualty. FMV is generally determined through a competent appraisal. Without a competent appraisal, the cost of cleaning up or making certain repairs is acceptable under certain conditions as evidence of the decrease in fair market value.
Generally, the cost of cleaning up or making repairs if the repairs are:
Actually made.
Not excessive.
Necessary to bring the property back to its condition before the casualty.
Only made to repair damage.
Not adding value to the property or making it worth more than before the disaster happened.
Crisis Cleanup
For help cleaning up the damage from Hurricane Ian, call the Crisis Cleanup Hotline at 800-451-1954. You will be connected to volunteers from local relief organizations, community groups and faith communities.
Clean and Sanitize Assistance
The State of Florida and FEMA have authorized Clean and Sanitize Assistance. Eligible applicants may qualify for a one-time $300 payment to help with cleanup of their damaged dwelling.
Critical Needs Assistance
FEMA may provide financial assistance to applicants who have immediate or critical needs because they are displaced from their primary dwelling. Immediate or critical needs are lifesaving and life-sustaining items, including water, food, first aid, prescriptions, infant formula, diapers, consumable medical supplies, durable medical equipment, personal hygiene items and fuel for transportation.
-saving and life-sustaining items, including water, food, first aid, prescriptions, infant formula, diapers, consumable medical supplies, durable medical equipment, personal hygiene items,
Operation Blue Roof
The U.S. Army Corps of Engineers, in coordination with FEMA, may be able to assist eligible homeowners with temporary roof repairs. Operation Blue Roof is a free service to homeowners impacted by Hurricanes. Homeowners can sign up online at blueroof.us or call 1-888-ROOF-BLU (1-888-766-3258) for more information.
Copyright © 2024 Global Hope Collective / (dba) Hurricane Help Florida | EIN 33-1391231 | Tampa, FL | All Rights Reserved.
Copyright © 2024 Global Hope Collective / (dba) Hurricane Help Florida | EIN 33-1391231 | Tampa, FL | All Rights Reserved.