GUIDE TO DISASTER ASSISTANCE PROGRAMS- FEMA & SBA - WHAT IT MEANS AND WHAT IT DOES:

Government disaster assistance covers basic needs only and will not normally compensate you for your entire loss. If you have insurance, the government's assistance may help for basic needs not covered under your insurance policy. Residents need to contact their insurance agent first, then call FEMA to apply. The process is outlined below.

Some disaster aid does not have to be paid back, while other types of help may come in the form of low-interest government loans. The FEMA representative will explain the details when you call or come in for face-to -face help at the Disaster Recovery Center, Fernley City Hall -595 Silver Lace Blvd., 9:00 am to 6:00 pm daily, Monday through Friday and 8:00 am to Noon on Saturday, closed Sunday.

Here's how you start STEP 1:
Call the toll--free registration number 1-800-621-FEMA (3362) OR Register on-line at http://www/fema.gov. OR Register in person at Fernley City Hall, 595 Silver Lace Blvd., 

These are the ONLY ways to apply for assistance.

FEMA only make grants to disaster victims.

Here's what will happen next:
You will be asked general information about your income, your insurance and the damage to your residence and housing needs.

You will be given an application control number, which will help locate you in the system. Write this number down so you will have it secure handy in the future.

A few days later:
A FEMA inspector will call you to arrange a visit to your damaged home or apartment.

The FEMA inspector will come and look at disaster-related damages for FEMA's Individuals and Households Program.

You will also be asked to sign a paper saying that you or someone in your household is a U.S. citizen, non-citizen national, or qualified alien at the time of the disaster. You will need to present identification.

Next: 
If you qualify for the FEMA's Individuals and Households Program, you will receive a check in the mail or direct deposit to your bank and a separate letter in the mail, explaining how you may use the assistance. You may receive additional funds from other programs later.

Use of Assistance Funds:
These funds may be used for rental assistance if your home or apartment is uninhabitable because of the disaster.

You may use FEMA housing repair funds for essential to make your residence safe, sanitary, and functional. These funds are for repairs necessary to make primary rooms habital.
 
You may use personal property funds for essential repairs to or to replace appliances and furniture.

STEP 2 The SBA Process and FEMA:
The U.S. Small Business Administration (SBA) may send you an application  packet after you apply for FEMA assistance. It is very important to complete the SBA process and forms and to return to SBA as soon as possible, if you do not fill out and return the SBA application, you may not be eligible for other types of assistance. 

Face to Face Help:
You can receive face-to-face help in filling out the SBA application  packet at the Fernley Disaster Recovery Center located at City Hall - 595 Silver Lace Blvd., 9:00 am to 6:00 pm MOnday through Friday, 8:00 am to Noon on Saturday, closed Sunday.

SBA's goal is to return you to your pre-disaster condition. The SBA low- interest disaster loan is for renters, homeowners, businesses and non-profit organizations that suffered losses due to the disaster.

If you are a homeowner you may be able to borrow up to $200,000 for the structure. If you are a renter or homeowner you may be able to borrow up to $40,000 for personal property. Businesses may apply for up to $1.5 million for loss not fully covered by insurance.

SBA loans are made for the repair or replacement of real estate or personal property. You may also increase your loan up to 20 percent to spend on protective improvements that may help prevent damage from happening again.

Eligibility for a loan will be determined by the SBA through the registration process.

Disaster recovery assistance is available to any individual without regard to race, color, sex, religion, national origin, age, disability or economic status.

WHAT TYPES OF FEMA ASSISTANCE ARE PROVIDED?
Rental Assistance - Money for individuals to rent a differnet place to live while making repairs to your primary residence.

Repair - Money for homoewners to repair damage from the disaster that is not covered by insurance. The goals is make the damaged home, safe, sanitary, and functional.

Replacement - Limited funds may be available under specific conditions to replace a disaster destroyed home.

Other Needs Assistance - Money for necessary and serious needs caused by the disaster, not covered by insurance or other aid. This includes medical, dental, funeral, personal property, transportation, and other expenses that FEMA approves. You may be required to apply for an SBA low-interest loan before receiving certain assistance.

FEMA Information - After you have applied for assistance, the toll-free FEMA helpline is a very useful resource. You may ask about insurance programs, the status of your application, or how money from various assistance programs may be used. FEMA assistance does not make you whole again, but it can give you a helping hand to recover. 

Federal Aid Programs For Fernley Disaster Recovery

Release Date: January 8, 2008
Release Number: HQ-08-005Factsheet

» En Español


Following is a summary of key federal disaster aid programs that can be made available as needed and warranted under President Bush's major disaster declaration.

Assistance for Affected Individuals and Families Can Include as Required:

• Rental payments for temporary housing for those whose homes are unlivable.  Initial assistance may be provided for up to three months for homeowners and at least one month for renters.  Assistance may be extended if requested after the initial period based on a review of individual applicant requirements.  (Source: FEMA funded and administered.)
  
  
• Grants for home repairs and replacement of essential household items not covered by insurance to make damaged dwellings safe, sanitary and functional.  (Source: FEMA funded and administered.)
  
  
• Grants to replace personal property and help meet medical, dental, funeral, transportation and other serious disaster-related needs not covered by insurance or other federal, state and charitable aid programs.   (Source: FEMA funded at 75 percent of total eligible costs; 25 percent funded by the state.)
  
  
• Unemployment payments up to 26 weeks for workers who temporarily lost jobs because of the disaster and who do not qualify for state benefits, such as self-employed individuals.  (Source: FEMA funded; state administered.)
  
  
• Low-interest loans to cover residential losses not fully compensated by insurance.  Loans available up to $200,000 for primary residence; $40,000 for personal property, including renter losses.  Loans available up to $1.5 million for business property losses not fully compensated by insurance.  (Source: U.S. Small Business Administration.)
  
  
• Loans up to $1.5 million for small businesses that have suffered disaster-related cash flow problems and need funds for working capital to recover from the disaster's adverse economic impact.  This loan in combination with a property loss loan cannot exceed a total of $1.5 million. (Source: U.S. Small Business Administration.)
  
  
• Loans up to $500,000 for farmers, ranchers and aquaculture operators to cover production and property losses, excluding primary residence.  (Source: Farm Service Agency, U.S. Dept. of Agriculture.)
  
  
• Other relief programs: Crisis counseling for those traumatized by the disaster; income tax assistance for filing casualty losses; advisory assistance for legal, veterans benefits and social security matters.

Assistance for the State and Affected Local Governments Can Include as Required:

• Payment of not less than 75 percent of the eligible costs for emergency measures taken to save lives and protect property and public health.  (Source: FEMA funded, state administered.)
  
  
• Payment of more than 75 percent of the approved costs for hazard mitigation projects undertaken by state, tribal and local governments to prevent or reduce long-term risk to life and property from natural or technological disasters.  (Source: FEMA funded, state administered.)

How to Apply for Assistance:

• Those in the counties designated for assistance to affected residents and business owners can begin the disaster application process by registering online at www.fema.gov or by calling 1-800-621-FEMA (3362) or 1-800-462-7585 (TTY) for the hearing and speech impaired. The toll-free telephone numbers are available from 8 a.m. to 6 p.m. (local time) Monday through Sunday.  Applicants registering for aid should be prepared to provide basic information about themselves (name, permanent address, phone number), insurance coverage and any other information to help substantiate losses.
  
  
• Application procedures for local governments will be explained at a series of federal/state applicant briefings with locations to be announced in the affected area by recovery officials. Approved public repair projects are paid through the state from funding provided by FEMA and other participating federal agencies.

FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

What is FEMA Disaster Assistance?

Disaster assistance is money or direct assistance to individuals, families and businesses in an area whose property has been damaged or destroyed and whose losses are not covered by insurance. It is meant to help you with critical expenses that cannot be covered in other ways. This assistance is not intended to restore your damaged property to its condition before the disaster.

While some housing assistance funds are available through FEMA Individuals and Households Program, most disaster assistance from the Federal government is in the form of loans administered by the Small Business Administration.

Available Disaster Assistance

• Disaster assistance available from FEMA
• Disaster loans available from the Small Business Administration
• Disaster assistance available from other organizations and agencies  

What Information do I Need to Apply?

Whether applying online OR over the phone, you should have a pen and paper and the following information ready:

• Your Social Security number.
• Current and pre-disaster address.
• A telephone number where you can be contacted.
• Insurance information.
• Total household annual income
• A routing and account number from your bank (only necessary if you want to have disaster assistance funds transferred directly into your bank account)  
• A description of your losses that were caused by the disaster.

Note: FEMA verifies the name and social security number of those registering for disaster assistance. If the name and social security number on file with the social security administration does not match the information you provide you will be asked to submit a copy of an original document, e.g. marriage license, military ID, tax documents, etc., for proof of identity. A need to review and update identity documentation may cause delays in delivery of assistance.

After you've completed your application for assistance, you will receive a FEMA application number. Write down this number and keep it for future reference.

Applying for Assistance

How do I apply for Disaster Assistance?
FEMA offers two ways to apply for disaster assistance. The newest is to apply on-line through the Online Individual Assistance Center - Register for Assistance. The traditional way is to call FEMA, 1-800-621-FEMA (3362) and register over the phone or TTY 1-800-462-7585 for the speech and hearing impaired.

Disaster Assistance Frequently Asked Questions

 FACT SHEET

 

Incident:  FERNLEY FLOODING – JANUARY 2008

 

Disaster:  NV-00008  Declaration:  11148/11149

Occurring:  January 5, 2008 and continuing

 

Application Filing Deadlines:

Physical Damage:  March 10, 2008  Economic Injury:  October 8, 2008

 

Whether you rent or own your own home, own your own business, or own a small agricultural cooperative located in a declared disaster area, and are the victim of a disaster, you may be eligible for financial assistance from the U. S. Small Business Administration (SBA). 

 

What Types of Disaster Loans are Available?

 

·          Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster damaged real estate or personal property owned by the victim.  Renters are eligible for their personal property losses, including automobiles.

 

·          Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment.  Businesses of any size are eligible.  Non-profit organizations such as charities, churches, private universities, etc., are also eligible.

 

·          Economic Injury Disaster Loans (EIDL) – Loans for working capital to small businesses and small agricultural cooperatives to assist them through the disaster recovery period.  EIDL assistance is only available to applicants and their owners who cannot provide for their own recovery from non-government sources.  Farmers, ranchers, nurseries, religious and non‑profit organizations are not eligible for an EIDL.

 

What are Mitigation Loans?

 

If your loan application is approved, you may be eligible for additional funds to cover the cost of improvements that will protect your property against future damage.  Examples of improvements include retaining walls, seawalls, sump pumps, etc.  Mitigation loan money would be in addition to the amount of the approved loan, but may not exceed 20 percent of the approved loan amount.  It is not necessary for the description of improvements and cost estimates to be submitted with the application.  SBA approval of the mitigating measures will be required before any loan increase.

 

What are the Credit Requirements?

 

·          Credit History – Applicants must have a credit history acceptable to SBA.

 

·          Repayment – Applicants must show the ability to repay all loans.

 

·          Collateral – Collateral is required for physical loss loans over $10,000 and all EIDL loans over $5,000.  SBA takes real estate as collateral when it is available.  SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.

 

What are the Interest Rates?

 

By law, the interest rates depend on whether each applicant has Credit Available Elsewhere.  An applicant does not have Credit Available Elsewhere when SBA determines the applicant does not have sufficient funds or other resources, or the ability to borrow from non-government sources, to provide for its own disaster recovery.  An applicant, which SBA determines to have the ability to provide for his or her own recovery is deemed to have Credit Available Elsewhere.  Interest rates are fixed for the term of the loan, are determined from disaster to disaster with market conditions.  Currently (for disasters which occurred on or after October 15, 2007) the applicable interest rates are:

 

                                                                                                       No Credit Available                                 Credit Available

                                                                                                              Elsewhere                                            Elsewhere

 

                                Home Loans                                                         2.937%                                                  5.875%

                                Business Loans                                                   4.000%                                                  8.000%

                                Non-Profit Organizations                                    4.000%                                                  5.250%

                                Economic Injury Loans                                       4.000%                                                      N/A

 

What are Loan Terms?

 

The maximum term is 30 years.  However, the law restricts businesses with credit available elsewhere to a maximum 3-years term.  SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay.

 

What are the Loan Amount Limits?

 

·          Home Loans – SBA regulations limit home loans to $200,000 for the repair or replacement of real estate and $40,000 to repair or replace personal property.   Subject to these maximums, loan amounts cannot exceed the verified uninsured disaster loss.

 

·          Business Loans – The law limits business loans to $1,500,000 for the repair or replacement of real estate, inventories, machinery, equipment and all other physical losses.  Subject to this maximum, loan amounts cannot exceed the verified uninsured disaster loss.

 

·          Economic Injury Disaster Loans (EIDL) – The law limits EIDL(s) to $1,500,000 for alleviating economic injury caused by the disaster.  The actual amount of each loan is limited to the economic injury determined by program standards, less business interruption insurance and other recoveries up to the administrative lending limit.  SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates.

 

·          Business Loan Ceiling – The $1,500,000 statutory limit for business loans applies to the combination of physical and economic injury, and applies to all disaster loans to a business and its affiliates for each disaster.  If a business is a major source of employment, SBA has the authority to waive the $1,500,000 statutory limit.

 

What Restrictions are there on Loan Eligibility?

 

·          Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible.  Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility.  However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.

 

·          Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes.  Property such as antiques and collections are eligible only to the extent of their functional value.  Amounts for landscaping, swimming pools, etc., are limited.

 

·          Noncompliance – Applicants who have not complied with the terms of previous SBA loans are not eligible.  This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA or Federally Insured loans.

 

Is There Help Available for Refinancing?

 

·          SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant (1) does not have credit available elsewhere, (2) has suffered substantial uncompensated disaster damage (40 percent or more of the value of the property), and (3) intends to repair the damage. 

 

·          Homes – Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, in some cases up to the amount of the loan for real estate repair or replacement.

 

·          Businesses – Business owners may be eligible for the refinancing of existing mortgages or liens on real estate, machinery and equipment, in some cases up to the amount of the loan for the repair or replacement of real estate, machinery, and equipment.

 

What if I Decide to Relocate?

 

You may use your SBA disaster loan to relocate.  The amount of the relocation loan depends on whether you relocate voluntarily or involuntarily.  If you are interested in relocation, an SBA representative can provide you with more details on your specific situation.

 

Are There Insurance Requirements for Loans?

 

To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance.  By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance for the full insurable value of the property for the life of the loan.

 

For More Information Contact:

SBA Disaster Assistance Customer Service Center

(800) 659-2955

http://www.sba.gov/services/disasterassistance

MORE INFORMATION:

SBA STANDS READY TO ASSIST VICTIMS OF FERNLEY SEVERE WINTER STORMS AND FLOODING:

SACRAMENTO – Steve Preston, Administrator of the U.S. Small Business Administration (SBA), today announced that low-interest disaster loans are now available to Nevada residents and businesses.  These disaster loans are available because of President Bush’s Federal disaster declaration.   

 

The declaration covers Lyon County as a result of the severe winter storms and flooding beginning January 5, 2008.

 

“We look forward to working with the State of Nevada to make our loans available to homeowners, renters and businesses of all sizes affected by the severe winter storms and flooding,” said Administrator Preston.  “We will be swift in our efforts to help Nevada disaster victims rebuild their homes and businesses.  Once local recovery facilities are identified in the declared areas, SBA officials will provide one-on-one assistance to disaster loan applicants.”

 

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 $1.5 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 only, 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. 

 

Interest rates can be as low as 2.937 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.

 

To be considered for all forms of disaster assistance, victims must first call the Federal Emergency Management Agency (FEMA) at 1-800-621-3362.  Additional details on the location of assistance centers can be obtained by calling the SBA Customer Service Center at (800) 659-2955.  The filing deadline to return applications for property damage is March 10, 2008.  The EIDL deadline is October 8, 2008. -End-