Response:lmh/pjm

The U.S. Small Business Administration offers three types of low-interest disaster loans to assist victims of federally declared disasters as follows:

1. Home Disaster Loans: Loans to homeowners and renters to repair or replace disaster damaged real estate and personal property. Loan amounts are based on actual uncompensated disaster losses and may be approved for up to $200,000 for real estate and $40,000 for personal property, with terms extending to 30 years.

2. Business Physical Disaster Loans: Loans to businesses to repair or replace disaster damaged real estate, and business contents. Businesses of any size are eligible. Non-profit organizations such as charities, churches, private universities, etc are also eligible. Loan amounts are based on uncompensated disaster losses and may be approved up to $1.5 million for terms extending to 30 years.*

3. Economic Injury Disaster Loans (EIDL): Loans for working capital to small businesses and small agricultural cooperatives to assist in paying continuing operating expenses during the disaster recovery period. EIDL assistance is available only to businesses unable to overcome the effects of the disaster through available resources or private sector borrowing. Loan amounts are limited to the actual disaster-related economic injury and range up to $1.5 million with terms extending to 30 years.*

* The maximum amount the business and any affiliates may borrow for any one disaster is limited to $1.5 million for both physical damage and economic injury combined.

The first step in obtaining disaster assistance is to register with FEMA at 1-800-621-3362. As part of the registration process, you may be referred to the SBA for additional financial assistance.

The SBA disaster loan program is the federal governments' primary resource for long-range disaster recovery, providing low-interest long-term loans for homeowners, renters and businesses to repair or replace disaster damaged real estate and personal property. If you are referred to the SBA, a disaster loan application will automatically be mailed to the address provided to FEMA during your registration.

For your reference SBA Disaster recovery information can be obtained at the following website: http://www.sba.gov/disaster_recov/index.html

We suggest you contact FEMA directly regarding the scope of their assistance programs.

Sincerely,

Paul McCabe

Customer Service Representative