SBA Simplifies Documentation Requirements for Business Disaster Loans

 In the wake of Hurricanes Katrina, Rita and Wilma and responding to the issues faced by business owners who lost important documents in the aftermath of these devastating storms, the U.S. Small Business Administration has relaxed some of its disaster loan filing requirements.

In order to expedite the processing of these loans including waiving the usual requirement of the submission of tax returns from the last three years for those businesses in Florida. These owners will also now be able to file a disaster loan application without providing a monthly sales analysis for the last three years. In addition, the title or record search previously required before all loan disbursements above $25,000 will now only be required for loans exceeding $50,000.

“Relaxing some of the loan processing criteria will ease the approval process, allowing business owners to rebuild more quickly and lay the foundation for the revival of the region’s economy,” said SBA Administrator Hector V. Barreto.

Loans to businesses of all sizes and non-profit organizations are available up to $1.5 million to repair damage to real estate, machinery, equipment and inventory.

Economic Injury Disaster Loans (EIDLs) of up to $1.5 million are also available to small businesses unable to pay bills or meet operating expenses. Interest rates can be as low as 2.68 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant’s financial condition.