1. 2013 Florida Emergency Preparedness Association Annual Meeting and Work Session SBA Disaster Loan Program & Basics of Disaster Preparedness January 28 – February 1, 2013 Office of Disaster Assistance

2. Since 1953, when the SBA started making disaster loans, the SBA has approved more than $50 billion in disaster loans to over 1.9 million homeowners, renters, businesses and non-profit entities. The SBA’s low-interest loan program was designed by Congress to enable those affected by unforeseen catastrophic events to recover with as little adverse impact as possible. History 2

3. 3 Since 1989, the U.S. Small Business Administration’s (SBA) Office of Disaster Assistance has approved disaster loans for over $4 billion in Florida.

4. 4 History Last year, following Tropical Storm Debby, the SBA approved almost $22.8 million in disaster loans.

5. SBA’s goal is to help people recover from disasters and rebuild their lives by providing financial assistance to homeowners, renters, businesses and non- profit organizations of all sizes. After hurricanes, floods, tornadoes, earthquakes, wildfires and other disasters, the SBA is the primary source of federal funds for long-term recovery assistance. SBA disaster loan program features low-interest rates, generous terms and conditions, and makes recovery less challenging. Role in Disaster Recovery 5

6. When Are Disaster Loans Available? 6 Presidential Disaster Declarations  Individual Assistance  Public Assistance SBA Disaster Declarations  Agency or Administrative (Physical and economic injury)  Governor’s Certification (economic injury only)  Secretary of Agriculture (economic injury only)  Military Reservist (economic injury only)

7. Presidential Declaration for Individual Assistance President Barack H. Obama If the President declares a major disaster declaration for Individual Assistance, SBA’s disaster loan program is automatically activated. Homeowners, renters and businesses of all sizes including private, non-profit organizations are eligible to apply for their uncompensated physical losses. Small businesses, small cooperatives and most private non-profits of any size, can apply for working capital loans to cover their economic injury losses. 7

8. Presidential Declaration for Public Assistance (PA) If the President declares a major disaster declaration for Public Assistance, SBA’s disaster loan program is activated only for eligible private, non-profit organizations.

9. Administrative (Agency) Declaration SBA Administrator Karen G. Mills If SBA’s Administrator declares an SBA only declaration (called an Administrative or Agency declaration), SBA’s disaster loan program is activated. Individuals and businesses are eligible. Usually a less substantial disaster. FEMA is not involved. There are no federal grants available. SBA makes an agency disaster declaration for physical damages based on the verification of the occurrence that at least 25 homes and/or businesses that sustained at least 40% uninsured property damage. 9

10. Differences in Presidential Versus Agency Declarations Presidential declarations SBA Administrative (Agency) declarations The declared disaster area and eligibility is different. In Primary Counties: Renters, homeowners and businesses of all sizes are eligible to apply for SBA disaster loans for physical damages. Small business and non-profit organizations of all sizes are eligible to apply for economic injury disaster loans. In Contiguous Counties: The SBA’s economic injury disaster loan program is available. Loans for physical damages are not available to individuals or businesses in these counties. In Primary Counties: Renters, homeowners and businesses of all sizes are eligible to apply for SBA disaster loans for physical damages. Small business are eligible to apply for economic injury disaster loans AND the same assistance is available to those in the contiguous counties. FEMA is not involved. There are no grants available.

11. Governor’s Certification If a Governor certifies that at least five (5) small businesses in a disaster area have suffered substantial economic injury as a result of the disaster, and need financial assistance not available on reasonable terms, SBA activates its Economic Injury Disaster Loan (EIDL) program only. Note: Physical Disaster Loans are not available under this type of declaration This declaration is for Economic Injury Disaster Loans (EIDL) only. The filing deadline is 9 months from the date of the declaration. Florida Governor Rick Scott

12. Secretary of Agriculture Declarations (Sec-Ag) If the Secretary of Agriculture designates an area an agricultural disaster, SBA automatically activates its Economic Injury Disaster Loan (EIDL) program. This declaration is for Economic Injury Disaster Loans (EIDL) only. The filing deadline is 8 months from the date of the declaration. Loans are made available to eligible small businesses, small agricultural cooperative, or private non-profits organizations that have suffered substantial economic injury as a result of the declared disaster.

13. Military Reservists Economic Injury Disaster Loans (MREIDL) Eligible small businesses that are not able to meet their ordinary and necessary operating expenses because an “essential employee” is called up to active duty in their role as a military reservist can apply for an SBA Military Reservist Economic Injury Disaster Loan. The filing period begins the date the essential employee receives a notice of expected call-up and ends 1 year after the date the essential employee is discharged or released from active duty.

14. 14 How Much Survivors Can Borrow? Disaster loans are only for uninsured losses Homeowners  Up to $200,000 to repair/or replace primary homes Homeowners/Renters  Up to $40,000 for contents, including automobiles Businesses/Non-Profits  Up to $2M to repair/replace damaged business assets and working capital loans to meet operating expenses Note: Funds are also available for mitigation to prevent loss to real property. Working capital loans are only available to small businesses, and non-profit organizations of all sizes.

15. Ways to Apply for an SBA Disaster Loan Under a Presidential Disaster Declaration, disaster victims should first register with FEMA by calling 1-800-621-3362 or visiting www.disasterassistance.gov.www.disasterassistance.gov In all other disaster declarations: Apply online at: https://disasterloan.sba.gov/ela/.https://disasterloan.sba.gov/ela/ Call 1-800-659-2955, or Visit one of the Centers in the disaster area. Application forms are available at www.sba.gov.www.sba.gov 15

16. Why Prepare for Disasters Disaster Response Plan Basics of Disaster Preparedness 16

17. Protect Yourself and Your Assets  Generally, it takes several years to build a successful business and hours or minutes for a disaster to destroy it.  Businesses that are unable to access their critical data for an extended period may have more difficulty recovering.  Disasters ruin businesses and create financial hardship on families.  Proper preparation allows businesses to recover quickly. Why Prepare for Disasters 17

18. 25 percent of businesses that close after a disaster never reopen. -Institute for Business and Home Safety Why Prepare for Disasters 18

19. While 75 percent of surveyed business owners had a plan to get employees back to work after a disaster, only 28 percent had access to an alternative office space. ― Agility Recovery 19 Why Prepare for Disasters

20. The SBA offers the following tips to help businesses prepare for disasters: Identify Your Needs  Determine what your operation needs to protect itself when disaster occurs. Take steps to protect your assets even if you don not own the business building. Safety  Include an evacuation plan with routes and establish meeting places and designate staff members to do a head count to account for all employees. Disaster Response Plan 20

21. Insurance Coverage  Consult with a business insurance expert to advise you on the right coverage for your situation.  When buying insurance, ask “How much can I afford to lose?” It’s a good idea to know the value of your property.  Review your insurance coverage annually to make sure the policy still meets your needs. Disaster Response Plan 21

22. Insurance Cont.  Most policies do not cover flood damage. The National Flood Insurance Program provides this coverage. Visit www.floodsmart.govwww.floodsmart.gov for more information.  Consider business interruption insurance, which compensates for lost income if your company has to shut down after a disaster. Alternative Work Space  Consider an alternate facility for Continuity of Operations. Ensure you have the necessary equipments and vital records to perform your core functions for a period of time. Disaster Response Plan 22

23. Documentation  Inventory your personal and business assets before the disaster occurs.  Document the purchase date, price and estimated replacement cost of furniture, computers, security equipment, machinery and other property.  Regularly photograph or videotape your facility and its contents to accurately document your business assets. Disaster Response Plan 23

24.  Once you’ve done your inventory, arrange for off-site backup and storage of the written record of your property and other vital records. Computer data should be backed up routinely.  Consider professional information protection and storage companies to provide data protection solutions. Disaster Response Plan 24

25. Telecommute When Possible  The nature of your business should determine if some or all your staff could telecommute in the event your facility remains inaccessible for an extended period. Contact Information  Keep emergency telephone numbers handy and designate a staff contact persons to reach other employees, family members, essential customers, vendors and insurance agents. Maintain Contacts Through Website  Post information about your business recovery plans on a website so that vendors, suppliers and customers can stay informed. Remain positive. Disaster Response Plan 25

26. Employees Awareness of Plan  Seek employees’ input.  Discuss the plan and provide copies to your staff.  Ensure everyone understands their role and knows the line of succession. Conduct Simulation Exercises  Periodically, test the effectiveness of the response plan with your employees using simulation exercises.  Revise plan where necessary. Disaster Response Plan 26

27. Preparedness tips for businesses, homeowners and renters are available: www.sba.gov/services/disasterassistance.www.sba.gov/services/disasterassistance Business-focused preparedness tools & information can be found at: www.PrepareMyBusiness.org.www.PrepareMyBusiness.org The federal government’s preparedness website www.ready.gov is another helpful resource.www.ready.gov Preparedness Tips 27

28. For more information on SBA disaster assistance, contact our Customer Service Center at: 1-800-659-2955, Send an email to: disastercustomerservice@sba.gov or visit: www.sba.govwww.sba.gov. Contact Information 28