SBA will Offer Disaster Assistance to Residents & Businesses Affected by 49 Fire

D isaster N ews

Loans for Homeowners, Renters and Businesses of All Sizes

Release Date: September 9, 2009

Release Number: CA 11874-01

SBA Offers Disaster Assistance to California Residents and Businesses Affected by the 49 Fire

Sacramento, CA – U. S. Small Business Administration (SBA) Administrator Karen G. Mills today announced that low-interest federal disaster loans are now available for residents and business owners affected by the 49 Fire that began August 30 in Placer County. SBA acted under its own authority to declare a disaster in response to a request we received from Governor Arnold Schwarzenegger on September 4.

The disaster declaration makes SBA assistance available in Placer County and the neighboring counties of El Dorado, Nevada, Sacramento, Sutter and Yuba in California and Carson City, Douglas and Washoe in Nevada.

“The U.S. Small Business Administration is strongly committed to providing the most effective and customer-focused response possible to assist California residents and businesses with federal disaster loans,” said Mills. “Getting our businesses and communities up and running after a disaster is our highest priority at SBA.”

“Historically in fire disasters SBA has found that most property owners have insurance coverage. However, SBA has found that for many property owners their insurance does not cover the full loss. SBA’s disaster loans are available to cover the gap between the cost of rebuilding and the amount of insurance settlements. It is not necessary to wait for insurance settlements before applying to SBA,” said Jim O’Neal, SBA’s Sacramento District Director.

“Low-interest federal disaster loans are available to homeowners, renters, businesses of all sizes and private, non-profit organizations whose property was damaged or destroyed by the disaster,” said O’Neal. “Beginning Thursday, September 10 at 9 am, SBA customer service representatives will be on hand at the following SBA Disaster Loan Outreach Center to issue loan applications, answer questions about SBA’s disaster loan program, explain the application process and help each individual complete their application,” O’Neal continued. The center will be open on the days and times indicated. No appointment is necessary.

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Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.

Businesses of any size and private, non-profit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. SBA can also lend additional funds to homeowners and businesses to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.

For small businesses and most private, non-profit organizations of any size, SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any property damage.

Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling SBA toll-free at (800) 659‑2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s Web site at www.sba.gov/services/disasterassistance. Hearing impaired individuals may call (800) 877‑8339. Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.

The filing deadline to return applications for property damage is November 9, 2009. The deadline to return economic injury applications is June 9, 2010.

For more information visit SBA’s Web site at www.sba.gov.

SBA Field Operations Center - West, P.O. Box 419004, Sacramento, CA 95841