Disaster Assistance Loans/Housing for Those Affected By Hurricane Sandy
November 9, 2012
The U.S. Small Business Administration (SBA) is responsible for providing low-interest, long-term loans to homeowners, renters, nonprofits and businesses of all sizes located in a declared disaster area. SBA loans are for losses that are not fully covered by insurance or other recoveries
The U.S. Small Business Administration (SBA) is responsible for providing low-interest, long-term loans to homeowners, renters, nonprofits and businesses of all sizes located in a declared disaster area. SBA loans are for losses that are not fully covered by insurance or other recoveries.
To be eligible for SBA assistance, businesses or private non-profit organizations must have sustained physical or economic damage and be located in a disaster declared county. For homeowners or renters to be eligible, they must have sustained physical damage and be located in a disaster declared county. Nassau and Suffolk Counties are both disaster declared counties.
· Business Physical Disaster Loans can provide up to $2 million (actual loan amounts are based on amount of uncompensated damage) to repair or replace real property, machinery, equipment, fixtures, inventory, and leasehold improvements. In addition, disaster loans to repair or replace real property or leasehold improvements may be increased by as much as 20 percent of the verified loss to protect the damaged property against possible future disasters of the same type.
· The Economic Injury Disaster Loan Program (EIDL) can provide up to $2 million of financial assistance (actual loan amounts are based on amount of economic injury) to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of the declared disaster, regardless of whether the applicant sustained physical damage. An EIDL can help you meet necessary financial obligations that your business could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits you to maintain a reasonable working capital position during the period affected by the disaster. EIDLs do not replace lost sales or revenue.
By law, the total amount of a physical loan, economic injury disaster loan and mitigation funds cannot exceed $2 million.
To Apply: For application information, please call 1-800-659-2955, visit http://www.sba.gov/content/business-physical-disaster-loans or email DisasterCustomerService@sba.gov.
For more information on the types of loans available, see SBA’s NY Sandy fact sheet: http://www.sba.gov/sites/default/files/Factsheet%20NY%2013365.pdf
· Homeowners can apply for a real property loan for up to $200,000 to repair or replace their primary residence to its pre-disaster condition. The loan may not be used to upgrade the home or make additions to it. If, however, building codes require structural improvements to repair the disaster damage, the loan may be used to meet these requirements. Loans may be increased by as much as 20 percent of the verified losses (not to exceed $200,000) to protect the damaged real property from possible future disasters of the same kind.
· Homeowners or renters can apply for a personal property loan for up to $40,000 to help repair or replace personal property, such as clothing, furniture, automobiles, etc., lost in the disaster. As a rule of thumb, personal property is anything that is not considered real estate or a part of the actual structure. This loan may not be used to replace extraordinarily expensive or irreplaceable items, such as antiques, collections, pleasure boats, recreational vehicles, fur coats, etc.
To Apply: For application information, please call 1-800-659-2955, visit http://www.sba.gov/content/home-and-personal-property-loans or email DisasterCustomerService@sba.gov.
For more information on the types of loans available, see SBA’s NY Sandy fact sheet: http://www.sba.gov/sites/default/files/Factsheet%20NY%2013365.pdf
The Federal Emergency Management Agency (FEMA) offers the Individuals and Households Program (IHP), which provides assistance to individuals and households affected by a disaster to enable them to address necessary expenses and needs not met through other forms of disaster assistance or insurance. Forms of housing assistance under IHP include temporary housing, repair, replacement, and semi-permanent/permanent housing construction.
To receive money or help for housing needs through IHP, all of the following must be true:
· You have losses in an area that has been declared a disaster by the President (both Nassau and Suffolk Counties have been declared disaster areas);
· You have no insurance, or have filed for insurance benefits and the damage to your property is not covered by your insurance, or your insurance settlement is insufficient to meet your losses;
· You or someone who lives with you is a U.S. citizen, a non-citizen national, or a qualified alien;
· The home in the disaster area is where you usually live and where you were living at the time of the disaster;
· You are not able to live in your home now, you cannot get to your home due to the disaster, or your home requires repairs because of damage from the disaster.
To Apply: To begin the assistance registration process, visit Start Registration. For the online application, be ready with the following information: Social Security number, insurance information (type of coverage you have), family's gross total household income at the time of the disaster, and bank routing and account number if interested in direct deposit for any approved assistance funds.
You can also visit a local Disaster Recovery Center (DRC) for assistance, or call the FEMA Helpline to register or ask questions about your application: 1-800-621-3362. For people with speech or hearing disabilities, call: TTY: 1-800-462-7585.
FEMA Transitional Sheltering Assistance (TSA) Program: FEMA has activated its Transitional Sheltering Assistance (TSA) program for certain areas impacted by the hurricane, which allows eligible evacuees who cannot return to their homes to stay in hotels or motels until more suitable housing accommodations are available. This program allows eligible individuals or families to stay in a hotel or motel for a limited time and have the cost of the room and taxes paid directly to the hotel by FEMA. A complete and updated list of participating hotels can be found at http://www.femaevachotels.com/. The maximum amount that may be paid for hotels under TSA is based on the General Services Administration (GSA) lodging daily (per diem) rate for specific locations. This federal program will not reimburse applicants for previously incurred hotel expenses. Applicants are responsible for their own meals and for any lodging costs above the authorized allowance. Eligible evacuees must fit the following criteria:
o FEMA must be able to verify the identity of the evacuee;
o The primary residence of the evacuee must be in one of the counties that has been designated a disaster area; and
o The primary residence is inaccessible or unlivable due to damage or lack of power.
o You can register for this and other FEMA assistance online at www.disasterassistance.gov or via smart phone or tablet at m.fema.gov. Applicants can also call 1-800-621-FEMA.
The FEMA Housing Portal can help individuals and families who have been displaced by a disaster find a place to live. The portal consolidates rental resources to help individuals and families find available rental units in their area. Visit http://asd.fema.gov/inter/hportal/home.htm.
Mortgage Insurance for Disaster Victims – Insurance for those looking to purchase a new home, rebuild or repair their storm-damaged home:
· Section 203(h) Mortgage Insurance for Disaster Victims helps survivors in presidentially-designated disaster areas to obtain mortgages to purchase a new home or rebuild their home that was damaged by a disaster. In order to be eligible, you must be a homeowner of a one-family home that was destroyed during a presidentially-declared disaster. The home in question must also be your primary residence. For more information, visit: http://www.hud.gov/offices/hsg/sfh/ins/203h-dft.cfm
· Section 203(k) Rehabilitation Mortgage Insurance enables homebuyers and homeowners to either finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage, or finance the rehabilitation of their existing home. Money may be used for rehabilitation efforts ranging from relatively minor to virtual reconstruction. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses. In order to be eligible, you must be able to make monthly mortgage payments and be rehabilitating a home that is at least one year old. For more information, visit: http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm