Date: 09/14/2012
U. S. SMALL BUSINESS ADMINISTRATION
FACT SHEET – ECONOMIC INJURY DISASTER LOANS
CALIFORNIA Declaration # 13291
(Disaster: CA-00193)
Incident: CHIPS FIRE
occurring: July 29, 2012 through August 31, 2012
in Plumas County, California;
and the contiguous California counties of: Butte, Lassen, Shasta, Sierra, Tehama & Yuba
Application Filing Deadline: June 14, 2013
Type of Disaster Loan:
? Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural
cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes
meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.
These loans are intended to assist through the disaster recovery period.
? EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from
non-government sources, as determined by the U.S. Small Business Administration (SBA).
Credit Requirements:
? Credit History – Applicants must have a credit history acceptable to SBA.
? Repayment – Applicants must show the ability to repay the loan.
? Collateral – Collateral is required for all EIDLs over $5,000. SBA takes real estate as collateral when it is
available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral
that is available.
Interest Rates:
? The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest
rate for this program is 4 percent.
Loan Terms:
? The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment
payment based on the financial condition of each borrower, which in turn will determine the loan term.
Loan Amount Limit:
? Economic Injury Disaster Loans (EIDL) – The law limits EIDL(s) to $2,000,000 for alleviating economic injury
caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, 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. If a business is a
major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
Loan Eligibility Restrictions:
? Noncompliance – Applicants who have not complied with the terms of previous SBA loans are not eligible. This
includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA or
Federally insured loans.
Refinancing:
? Economic injury disaster loans cannot be used to refinance long term debts.
Insurance Requirements:
? To protect each borrower and the Agency, SBA requires borrowers to obtain and maintain appropriate insurance.
Borrowers of all secured loans (over $5,000) must purchase and maintain hazard insurance for the life of the loan
on the collateral property. By law, borrowers whose collateral property is located in a special flood hazard area
must also purchase and maintain flood insurance for the full insurable value of the property for the life of the loan.
For more information, contact SBA’s Disaster Assistance Customer Service Center by calling (800) 659-2955, emailing
disastercustomerservice@sba.gov, or visiting SBA’s Web site at www.sba.gov.
Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Applicants may also apply online using the
Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.