1. article – 22-11-2012 - biz2credit.com
Characteristics Of Disaster Loans
After the occurrence of a disaster, immediate action is taken from the government’s end. There are
several processes involved following which disaster loans are made available to victims. The ravage may
be a storm fire calamity , floods or any other form of disaster. The process of making loans available are
mentioned below :
Funding – The funding of small businesses after the occurrence of a natural calamity requires
verification of damages caused. For this, the owners can capture pictures of the damaged property and
record videos of ruined equipments. These proofs need to be given to loan officers who would then
sanction grants for the organization. Other eligibility conditions may also be required. This includes good
revenue earnings and ability to repay debts on time. However, the government does provide loans to
enterprises on loss compensation grounds.
Legislative Requirement – Disaster recovery and assistance acts are implemented and updated from
time to time. With the passing of suitable legislation, fund availability becomes simple and requisite
loans can be extended to the needy. Businesses most often find it tough to recover as their equipments
get damaged and their office space destroyed during the course of a natural calamity. So, large amounts
of advances are made available to them.
Characteristics – The fund will be awarded in the form of loans. So, enterprise owners need to fill in
application forms that are available online to ease the process. In the application form, they have to
mention the location of their business, time of being in business and nature of damage caused due to a
natural calamity. Then they have to provide photographs and videos and also state the amount that
they would need for leveraging a complete recovery of the damaged assets. Loan-officers may then tour
the property to assess if an enterprise owner’s claim is true. After that, grants are made available.
Activities – The grant money can be used to finance capital improvement of the organization, restore
damaged facilities and repair building destruction. Other typical use of the money can be like paying
salaries of employees, using it as working capital, and making other recovery efforts. This loan money
can also be used to pay off fire tenders and workers who removed rubble to help in the restoration
process.
Objectives – The objective of the fund is to speed up the recovery process and to make extended grants
available to eligible applicants. Governments understand the difficulties businesses face in the event of a
disaster. So, small business loan are given to enterprise owners to help them gain strength to carry on
their entrepreneurship and make their organization a thriving one. Thus, the pause that hinders their
functioning gets removed and organizations can restart again to achieve their set goals.
Delivery Schedule – The delivery of a disaster loans is done at the earliest. Just on receiving
applications, the delivery process gets initiated and funds are made available in a speedy way. In case of

2. extended loan support, sometimes time required is more compared to the normal grants. However,
business enterprises are assessed before making full grants available. If they are found eligible then
funds are transferred to their bank account immediately.