Disaster Assistance Program

1 SBA SOP 50 30 9. _____. Disaster Assistance Program Office of Disaster Assistance Small Business Administration SMALL BUSINESS ADMINISTRATION. STANDARD OPERATING PROCEDURE. SUBJECT: REV. Disaster Assistance Program SECTION NO. 50 30 9. INTRODUCTION. 1. Purpose: To establish policy for the Disaster Assistance Program . 2. Personnel Concerned: All SBA personnel involved in administering the SBA Disaster Assistance Program . 3. Directives Cancelled: SOP 50 30 8 and all Numbered Memos issued reflecting changes to 50 30 8. 4. Originator: Office of Disaster Assistance AUTHORIZED BY: EFFECTIVE DATE. 05/31/18. James E. Rivera Associate Administrator PAGE. for Disaster Assistance 1. SBA Form 989 (5-90) Ref: SOP 00 23. This form was electronically produced by Elite Federal Forms, Inc. 50 30 9.

2 Contents CHAPTER 1 .. 1. Program INTRODUCTION .. 1. OVERVIEW .. 1. AUTHORITY .. 1. CHANGES AND EXCEPTIONS TO POLICY AND SOP REQUIREMENTS .. 2. TYPES OF Disaster DECLARATIONS AND OTHER 2. GENERAL RULES OF APPLICATION AND 3. ORGANIZATION .. 3. IMPROPER PAYMENTS .. 4. REFERRAL TO THE OFFICE OF INSPECTOR GENERAL (OIG) .. 4. SAFEGUARDING 5. GENERAL GUIDANCE REGARDING AUTHORIZED REPRESENTATIVES .. 5. DOCUMENTING ALL CONTACTS .. 6. CASE FILE DOCUMENTATION .. 7. CONGRESSIONAL INQUIRIES .. 7. CHAPTER 2 .. 9. ORIGINATING THE LOAN APPLICATION .. 9. FEMA REGISTRATION .. 9. AUTOMATED 9. INITIAL Disaster SURVIVOR CONTACT .. 9. INTERVIEW TOPICS .. 11. Disaster LOAN APPLICATION PACKAGES .. 14. PRE-APPLICATION INTAKE .. 14. FILING AN 14. FILING PERIOD .. 14. THE GRACE PERIOD .. 15. ISSUING APPLICATIONS AFTER THE GRACE PERIOD.

3 15. ACCEPTING APPLICATIONS AFTER THE GRACE 15. FIELD SCREENING .. 16. APPLICATION 17. i Effective Date: May 31, 2018. 50 30 9. CHAPTER 3 .. 18. LOAN ELIGIBILITY APPLICANT ELIGIBILITY FOR HOME & BUSINESS Disaster LOANS.. 18. APPLICANTS GENERALLY ELIGIBLE .. 18. PRIVATE NON-PROFIT ORGANIZATIONS .. 25. RESTRICTIONS ON APPLICANT ELIGIBILITY .. 26. APPLICANTS GENERALLY INELIGIBLE .. 28. EQUAL CREDIT OPPORTUNITY ACT (ECOA) .. 31. CHARACTER DETERMINATION .. 32. ELIGIBILITY OF PROPERTY FOR PHYSICAL Disaster LOANS .. 33. GENERAL ELIGIBILITY RULE .. 33. LOCATION OF 34. ESTABLISHING OWNERSHIP .. 34. PRIMARY RESIDENCE ELIGIBILITY .. 34. AGRICULTURAL PROPERTY .. 36. REPAIR OR REPLACEMENT COST ELIGIBILITY FOR STRUCTURES .. 36. MANUFACTURED HOUSING ELIGIBILITY .. 37. LAND ELIGIBILITY.

4 38. LANDSCAPING AND RECREATIONAL IMPROVEMENTS/FACILITIES .. 39. HOME LOAN PERSONAL PROPERTY ELIGIBILITY .. 40. BUSINESS CONTENTS ELIGIBILITY .. 41. VEHICLE, PERSONAL VESSEL, AND PERSONAL AIRCRAFT ELIGIBILITY .. 42. COMMERCIAL VESSEL AND AIRCRAFT ELIGIBILITY .. 43. ALTERNATE USE OF LOAN ELIGIBILITY .. 43. UPGRADING .. 44. INELIGIBLE PROPERTY .. 45. CONDOMINIUM ELIGIBILITY (INDIVIDUAL UNITS AND CONDOMINIUM .. 47. CONDOMINIUM UNIT OWNERS .. 48. ASSOCIATION 49. OTHER ASSOCIATION ELIGIBILITY .. 50. REFINANCING .. 51. RELOCATION .. 56. PROTECTIVE DEVICES AND MITIGATION 61. ii Effective Date: May 31, 2018. 50 30 9. ECONOMIC INJURY Disaster LOANS .. 64. ECONOMIC INJURY Disaster LOAN (EIDL) ELIGIBILITY .. 64. ELIGIBLE EIDL LOAN AMOUNT .. 72. SIZE DETERMINATION .. 76. CHAPTER 4 .. 78.)

5 ELIGIBLE LOAN AMOUNT .. 78. VERIFICATION OF DAMAGE .. 78. REQUESTING REVERIFICATION .. 78. DETERMINATION OF AMOUNT OF PHYSICAL LOAN ELIGIBILITY .. 79. CHAPTER 5 .. 87. CREDIT .. 87. CREDIT INFORMATION .. 87. CREDIT BUREAU REPORTS (CBR).. 87. BUSINESS CREDIT REPORTS .. 87. DISCUSSION OF CREDIT CONTENT WITH APPLICANTS .. 87. ADVERSE CREDIT HISTORY .. 87. COLLECTIONS, CHARGE-OFFS, and FORECLOSURES:.. 88. LACK OF CREDIT HISTORY AND DIRECT CHECKS .. 88. PRIOR OR EXISTING SBA LOAN HISTORY .. 88. BANKRUPTCY OR REORGANIZATION .. 89. DELINQUENCY ON FEDERAL OBLIGATIONS WITH A JUDGMENT LIEN .. 90. DELINQUENCY ON FEDERAL OBLIGATIONS WITH NO JUDGMENT LIEN .. 90. CREDIT COUNSELLING SERVICES .. 91. MORTGAGE MODIFICATIONS .. 91. LAWSUITS AGAINST THE APPLICANT .. 91. CHILD SUPPORT .. 91. CHAPTER 6.

6 92. LOAN MAKING DECISION .. 92. LOAN MAKING PROCESS: .. 92. DOCUMENTING INCOME AND REPAYMENT ABILITY .. 93. OBTAINING TRANSCRIPTS .. 95. CONFLICTING FTR INFORMATION .. 96. THE FIXED DEBT METHOD (FDM) .. 96. iii Effective Date: May 31, 2018. 50 30 9. CHAPTER 7 .. 101. LOAN DECISION .. 101. AUTHORITY TO APPROVE, DECLINE, WITHDRAW, OR MODIFY LOAN APPLICATIONS.. 101. LOAN PROCESSING ROLES AND RESPONSIBILITIES .. 102. COMPANION AND ASSOCIATED FILES .. 102. TELEPHONE CONTACT UPON COMPLETION OF PROCESSING .. 103. LOAN APPROVAL .. 104. LOAN AMOUNTS .. 104. MAJOR SOURCE OF EMPLOYMENT WAIVER OF LENDING LIMIT .. 105. ROUNDING OF DOLLAR AMOUNTS .. 107. LIMITED LOAN AMOUNTS/LOSS IN EXCESS OF LENDING LIMITS .. 107. INTEREST RATES .. 108. LOAN TERMS, INSTALLMENT PAYMENT AMOUNTS .. 109. COLLATERAL 112.

7 GUARANTEE REQUIREMENTS .. 116. HAZARD/OTHER INSURANCE REQUIREMENTS .. 117. FLOOD INSURANCE 119. EFFECT OF FLOODPLAIN MANAGEMENT (EXECUTIVE ORDER 11988) AND. WETLANDS PROTECTION (EXECUTIVE ORDER 11990) REQUIREMENTS (SEE 13 CFR. ) .. 124. ANTI-DISCRIMINATION COMPLIANCE REQUIREMENTS .. 125. REQUIREMENTS FOR REAL ESTATE 125. GENERAL LOAN REQUIREMENTS FOR LARGE LOANS (GREATER THAN $1. MILLION) .. 126. LOAN AUTHORIZATION AND AGREEMENT (LAA) .. 127. CONDITIONAL COMMITMENT 127. OBLIGATING LOAN FUNDS .. 128. NOTIFICATION TO BORROWER OF LOAN APPROVAL .. 128. WITHDRAWAL OF APPLICATIONS .. 129. REACCEPTANCE OF WITHDRAWN APPLICATIONS .. 130. DECLINE OF APPLICATIONS .. 130. FAIR CREDIT REPORTING ACT .. 131. DECLINE OF BUSINESS/EIDL (B/E) LOANS .. 131. iv Effective Date: May 31, 2018. 50 30 9.

8 RECONSIDERATION OF DECLINED LOAN APPLICATIONS .. 131. RECONSIDERATION WHEN MAJOR SOURCE OF EMPLOYMENT (MSE). DETERMINATION WAS DENIED .. 132. RECONSIDERATION OF DECLINE FOR EXCEEDING APPLICABLE SIZE STANDARDS.. 133. APPEAL OF RECONSIDERATION .. 134. CHAPTER 8 .. 135. MODIFICATIONS TO THE LOAN .. 135. ADMINISTRATIVE CHANGES AND LOAN MODIFICATION .. 135. LOAN DECREASE AND CANCELLATION .. 138. REINSTATEMENT OF CANCELLED LOANS .. 139. INCREASES IN PHYSICAL AND ECONOMIC INJURY LOANS .. 140. Disaster LOAN SERVICING RESPONSIBILITY .. 142. CHAPTER 9 .. 143. LOAN CLOSING AND DISBURSEMENT .. 143. ROLES AND RESPONSIBILITIES .. 143. CLOSING .. 143. LOAN CLOSING DOCUMENTS (LCD) .. 143. LOAN DISBURSEMENT 143. CLOSING DEADLINES & EXTENSIONS .. 144. GENERAL GUIDELINES .. 145. LOAN CONDITIONS.

9 147. AGREEMENT OF COMPLIANCE .. 147. REQUIREMENTS FOR REAL ESTATE 147. INSURANCE REQUIREMENTS .. 148. COLLATERAL 150. TITLE SEARCH AND TITLE 152. EVIDENCE REQUIRED FOR PREVIOUSLY DISBURSED LOAN FUNDS .. 152. REFINANCING .. 153. EIDL/MREIDL DISBURSEMENTS .. 154. ESCROW ACCOUNTS AND/OR CONTROLLED ACCOUNTS .. 154. LOAN MODIFICATION AND ADMINISTRATIVE CHANGES .. 154. APPENDIX 1 .. 156. v Effective Date: May 31, 2018. 50 30 9. INDEX TO FORMS AND REPORTS .. 156. APPENDIX 2 .. 158. ACRONYMS AND DEFINITIONS .. 158. APPENDIX 3 .. 164. TYPES OF FIELD Assistance CENTERS .. 164. APPENDIX 4 .. 165. SBA MINIMUM INCOME LEVELS .. 165. APPENDIX 5 .. 166. APPLICATION FORMS .. 166. APPENDIX 6 .. 168. FILING 168. Disaster HOME LOAN APPLICATION (INCLUDING SOLE PROPRIETORSHIPS).. 168. Filing Requirements.

10 168. REQUIRED FOR ALL LOAN APPLICATIONS: .. 168. APPENDIX 7 .. 171. CITIZENS, NONCITIZEN NATIONALS, AND QUALIFIED ALIENS .. 171. APPENDIX 8 .. 175. MILITARY RESERVIST ECONOMIC INJURY (MREIDL) .. 175. POLICIES AND ELIGIBILITY .. 175. APPENDIX 9 .. 178. HOW TO MAKE A SIZE DETERMINATION .. 178. APPENDIX 10 .. 180. ECONOMIC INJURY Disaster LOAN (EIDL) .. 180. APPENDIX 11 .. 188. RIGHT TO FINANCIAL PRIVACY .. 188. APPENDIX 12 .. 190. IRS FORM 8821/4506-T TRANSCRIPTS VERIFICATION PROCESS .. 190. APPENDIX 13 .. 195. CREDIT ELSEWHERE GUIDELINES FOR Disaster HOMES AND BUSINESS LOANS .. 195. HOMES .. 195. BUSINESSES .. 196. APPENDIX 14 .. 198. REASONS FOR WITHDRAWAL OF APPLICATION .. 198. vi Effective Date: May 31, 2018. 50 30 9. APPENDIX 15 .. 204. REASONS FOR DECLINE OF APPLICATION.