Recovering from Flood Damage
If you do decide to apply for federal disaster business assistance, it will be important for you to gather as much documentation as possible to support your damage claims:
1. An asset value list, both pre-flood and post-flood pictures. Possible sources of pre-flood pictures accepted by the SBA are satellite images from websites like Google Maps or Google Earth.
2. Business tax returns and business financial statements for the past two or three years can be very beneficial in proving claims.
3. You should also gather insurance information and show what was covered and what was not. The SBA programs usually take effect after insurance claims are settled. While the more documentation you have the better, if you do not have everything listed above, simply gather what you do have for the SBA application. When applying for assistance, keep in mind:
- If your business was directly affected by the flood (water reached your business and caused damage or the effects of the water forced your business to close) you can apply directly to the SBA for assistance. You do not have to be turned down by another lender first.
- If your business was indirectly affected by the flood (you are outside the flood zone but your sales decreased because your customers are recovering from flood damage) you do need to show you do not have access to capital from another source before you can apply to the SBA for assistance.
- Unsecured business loans (loans of $13,999 or less) can expect a 21 day turnaround time. Secured loans (loans of $14,000 or more) will take longer as collateral needs to be verified. As in most business loans, costs and fees of verifying the collateral will apply.
4. You will be expected to offer what collateral you can to secure loans of $14,000 or more, but you will not be denied funding for lack of collateral.
5. SBA Disaster loans currently have a fixed rate of 4% and can be termed out up to 30 years to minimize payments.
The Pennsylvania SBDC does understand that you are probably overwhelmed and shocked by the damage caused by the recent flooding. We will continue to provide information as it becomes available. If you would like us to have additional contact information, if you have any questions on the disaster assistance program, or if you know of anyone else who will need assistance in recovering their small business from this natural disaster, please e-mail us .