- FEMA tells you that your household needs to apply for IA and IHP grants.
- FEMA sends damage determination letter called FEMA Verified Loss (FVL).
- FEMA tells you to to apply to the SBA Disaster Loan program if you would like to continue with your disaster recovery.
- FEMA may tell you that you must apply with the SBA and if declined by the SBA agency you will be referred back to FEMA for additional federal resources.
- It is very rare this will ever happen and if it does you can expect maybe $7,000 or less in ONA (Other Needs Assistance) grants.
- SBA will approve a loan for your household based on total income of $18,090 net per year.
- SBA will approve your household if you have a credit score of 350 or more.
- SBA will count all persons 15 years of age and older making a taxable income as part of the household income.
- SBA will approve your loan based on the amount of insurance you have related to the disaster. Example: $150,000 in Flood insurance the SBA will lend that homeowner regardless of income or credit scores up to the maximum payout of the insurance policy.
- SBA will approve your loan based on the collateral that was damaged and at pre-flood.
- You're not told about HUD CDGB-DR grants that you may have been qualified for if you didn't apply to the SBA disaster Loan Program.
- You're not told that Grants are awarded based on household income levels.
- You're not told that if your household income is less than 80% AMI you will receive HUD CDBG-DR grants when they become available in about 12 months from the disaster month.
- You're not told that if you take an SBA Disaster Loan that amount of the loan you are approved for will be counted as Duplication of Benefits against any future federal assistance even if you do not draw the full loan mount.
When FEMA directs you to apply for an SBA Disaster Loan and does not tell you that you are NOT required to apply for an SBA Disaster Loan that is mistake #1.
When the SBA Disaster Loan Program takes your credit and asset information for your application they will tell you when to expect your approval and your loan amount.
This is your Withdrawal period if you do not what to continue with the SBA Disaster Loan Program. You must ask them to withdraw you and to list your account status as "Withdrawn" or you my be classified as Approved which will be reported to your state Grantee handling your HUD CDBG-DR long term recovery.
If you signed your loan documents and mailed them the time in the mail is the only time you have to also withdraw from the program. The SBA calls this the time before they start processing the loan which is the minute your loan application arrives in their processing department.
Once your loan is in processing your loan status can never be "Withdrawn" or "Declined" or "Canceled" it will remain "Approved".
This is your introduction to the SBA Duplication of Benefits issue we are about to explode open for you right now.