Content about U.S. Small Business Administration

WASHINGTON — A month after Hurricane Sandy devastated the East Coast, the U.S. Small Business Administration has approved more than $150 million in low-interest disaster loans to about 2,500 homeowners, renters and businesses in New York, New Jersey, Connecticut and Rhode Island.

If your coin laundry was damaged by the storm, there are several ways to apply for SBA disaster relief assistance:

• Apply online at https://disasterloan.sba.gov/ela
• For information about the disaster loan process, or to have an application mailed to you, e-mail disastercustomerservice@sba.gov or call 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing)
• Call the Federal Emergency Management Agency (FEMA) to register for federal assistance at 800-621-3362
• To be considered for all forms of disaster assistance, register online at www.disasterassistance.gov, or use your mobile device at http://m.fema.gov
• Visit an SBA Small Business Development Center for help in completing loan applications and to gain advice on how to rebuild and grow in the aftermath of the disaster. Locate the nearest center by visit www.sba.gov/local-assistance

The filing deadline for physical property damage is Dec. 31 for businesses in New York, New Jersey and Connecticut, and Jan. 15 for those in Rhode Island. The economic injury disaster loan application deadline is July 31 for businesses in New York, New Jersey and Connecticut, and Aug. 14 for those in Rhode Island.

“During the past month, I’ve visited disaster centers and spoken with people who are struggling to reclaim communities and businesses that were devastated by Hurricane Sandy, and I was impressed by their determination to rebuild stronger,” says SBA Administrator Karen G. Mills. “The SBA is there to support the long-term recovery of the disaster areas, and we will make sure that as many people as possible get the help they need to become whole again.”

For more information about SBA disaster loans, visit www.sba.gov/sandy.

WASHINGTON – The U.S. Small Business Administration and AARP are launching a strategic alliance to provide counseling and training to entrepreneurs over the age of 50 who want to start or grow a small business.

Through SBA’s online training courses and its nationwide network of business mentors and counselors, the two organizations expect to train 100,000 “encore entrepreneurs,” men and women over 50 who are starting or running a small business, such as a coin laundry.

“No matter what your age, if you have an idea or a business that’s ready to move to the next level, the SBA wants to make sure you have access to the tools you need to start and grow,” says SBA Administrator Karen Mills. “We know that working side-by-side with AARP, we will be able to reach baby boomers and Americans over the age of 50 who have years of professional experience working for others and are ideally positioned to step out and become their own boss. And, in doing so, they will become job creators and drivers of economic growth in their communities.”

SBA has set up a dedicated web page for Americans over the age of 50 featuring: an online self-assessment tool that will help potential small-business owners understand their readiness for starting a business as well as information to help with business planning, shaping a winning business idea, professional counseling, financial services and information to find local resources.

SBA and AARP also will jointly develop and host a customized online course, self-assessment, and webinar series for older entrepreneurs.

“Many baby boomers are working beyond retirement age and choosing to stay active and engaged in the workforce,” Mills says. “For many older entrepreneurs, starting a small business can be an opportunity to transform a lifetime hobby or interest or years of professional experience into a lucrative line of work.”

WASHINGTON — Businesses everywhere are now operating on limited resources. Yet the survival of your laundry rests—particularly when faced with a disaster such as last weekend’s East Coast snowstorm—on protection of your key assets.

Developing a business continuity plan will not only reduce liabilities, but will ensure employee and customer retention, and may even reduce operational expenses, says the U.S. Small Business Administration (SBA).

On Nov. 15, Agility Recovery Solutions and the SBA will host an online webinar focusing on how preparedness affects a company’s bottom line. Agility President/CEO Bob Boyd will review the far-reaching financial impact of having a plan in place to recover after a disaster.

Space for the 2-3 p.m. Eastern Standard Time webinar is limited; register here.

SBA has partnered with Agility to offer business continuity strategies via its “Prepare My Business” website. Visit www.preparemybusiness.org to access past webinars and get additional preparedness tips.

CHICAGO — If your self-service laundry has suffered physical damage or has sustained economic injury after a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration (SBA). If your store—regardless of size—is located in the declared disaster area, you may apply for a long-term, low-interest loan to repair or replace damaged property.

Even if your property was not damaged and you are a small-business owner, you may apply for a working capital loan from the SBA to relieve the economic injury caused by the disaster.

Physical Disaster Loans

Businesses of all sizes may apply for a physical disaster loan of up to $2 million to repair or replace damaged real estate, equipment, inventory and fixtures. The loan may be increased by as much as 20% of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to protect the property against future disasters of the same type. These loans will cover uninsured or underinsured losses.

Economic Injury Disaster Loans

Small businesses of all sizes suffering substantial economic injury may also be eligible for an economic injury disaster loan of up to $2 million to meet necessary financial obligations—expenses the business would have paid if the disaster had not occurred.

Interest Rates

The interest rate on both of these loans will not exceed 4% if you do not have credit available elsewhere. Repayment can be up to 30 years, depending on the business’ ability to repay the loan. For businesses with credit available elsewhere, the interest rate will not exceed 8%. SBA determines whether the applicant has credit available elsewhere.

Application Information

Businesses may apply directly to the SBA for possible assistance. The SBA will send an inspector to estimate the cost of your damage once you have completed and returned your loan application.

The most frequently asked questions about disaster loans, according to the SBA, are:

• What information must I submit for a disaster loan?
  
  Submit a completed loan application and a signed and dated IRS form 8821 giving permission for the IRS to provide the SBA your tax-return information. The SBA needs current financial information such as a personal financial statement, a current profit-and-loss statement, balance sheet, and a list of debts.
• Can I use the disaster loan to expand my business?
  
  The disaster loan helps restore property to pre-disaster condition, and, under certain circumstances, protects the structure from future disasters. It cannot upgrade or expand a business unless required by local building codes.
• I already have a mortgage on my business. Can the SBA refinance my mortgage?
  
  The SBA can refinance all or part of a previous mortgage in some cases when the applicant does not have credit available elsewhere, has suffered uninsured damage (40% or more of the property value), and intends to repair the damage. SBA disaster loan officers can provide additional details.