Biomedical Engineering Reference
In-Depth Information
3
.
Pre-Disaster Mitigation Loans
. These low-
interest, fixed-rate loans are made to small
businesses for mitigation measures to protect
business property from damage that may
be caused by future disasters.
93
“A miti-
gation measure is something done for the
purpose of protecting real and personal prop-
erty against disaster-related damage. Exam-
ples of mitigation measures include retaining
walls, sea walls, grading and contouring land,
elevating flood-prone structures, relocating
utilities, and retrofitting structures against
high winds, earthquakes, floods, wild-fires, or
other disasters.”
94
The Pre-Disaster Mitigation
Loan program is a pilot program designed
to support FEMA's Pre-Disaster Mitigation
Program. Loans are made available to busi-
nesses which propose mitigation measures that
conform to the priorities and goals of the
community in which the business is located (as
defined by FEMA).
SBA Declaration.
87
A Presidential Declaration is
made when damages are significant. In the case of
a Presidential Declaration, “SBA offers physical
and economic injury loans in the declared counties
and economic injury (EI) loans only in contiguous
counties. …If the damages are less extensive the
Governor can ask for a SBA declaration.”
88
Two
types of SBA declarations may be made: Physical
Disaster Declaration and Economic Injury Decla-
ration. The SBA makes three types of disaster-
assistance loans to business,
89
and individual assis-
tance is coordinated through FEMA.
1
.
Physical Disaster Business Loans
. These loans
cover uninsured physical damages.
90
Any busi-
ness located in a declared disaster area that
incurred damage during the disaster may apply
for a loan to help repair or replace damaged
property (e.g., real property, machinery, equip-
ment, fixtures, inventory, and leaseholds) to its
pre-disaster condition.
2
.
Economic Injury Disaster Loans
. These loans
are provided to small businesses located in
a declared disaster area that suffer substan-
tial economic injury, regardless of
phys-
ical
damage.
91
“Small businesses and small
agricultural cooperatives that have suffered
substantial economic injury resulting from a
physical disaster or an agricultural produc-
tion disaster designated by the Secretary of
Agriculture may be eligible for the SBA's
Economic Injury Disaster Loan Program.
Substantial economic injury is the inability of a
business to meet its obligations as they mature
and to pay its ordinary and necessary operating
expenses.”
92
4
.
Individual Disaster Assistance
.
95
Disaster
assistance for individuals is coordinated
through FEMA. Individuals apply for most
assistance directly through FEMA. To apply
for SBA loans, individuals who are home-
owners or renters must first register with
FEMA to obtain a FEMA Registration ID
number. FEMA generally establishes local
Disaster Recovery Centers to coordinate assis-
tance. After an application for assistance is
received, the damaged property is inspected
to verify the loss.
96
The deadline for most
individual-assistance programs is sixty days
following the president's declaration of a
87
See
13 C.F.R. § 1233; Understanding How Disaster Declarations Are Made,
supra
note 52.
88
Understanding How Disaster Declarations Are Made,
supra
note 52.
89
13 C.F.R. § 1235 (2004).
90
See id
.§§123 200-123204; Physical Disaster Business Loans,
supra
note 55.
91
See
www.sba.gov/disaster_recov/loaninfo/ecoinjury.html; 13 C.F.R. 123.300-123.303.
92
Economic Injury Disaster Loans For Small Businesses,
supra
note 57.
93
See
13 C.F.R. § 123400; Pre-Disaster Mitigation Loan Program,
supra
note 57.
94
Pre-Disaster Mitigation Loan Program,
supra
note 57.
95
See
Fed. Emergency Mgmt. Agency, Individual Assistance Programs,
at
www.fema.gov/rrr/inassist.shtm (last visited Sept. 21, 2004).
96
See
Fed. Emergency Mgmt. Agency, Help After a Disaster
4 (May 2004),
at
www.fema.gov/pdf/about/process/help_
after_disaster_english.pdf (last visited Sept. 27, 2004).
