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LESSONS of RECOVERY' A REViEW of TIlE 1 997 COlORAdo Flood DisASTER Individual and Family Grant Program I Individuals and families who are unable to meet necessary disaster-related expenses and serious needs can qualify for assistance under the Individual and Family Grant (IFG) Program, which is offered when assistance from other sources is either unavailable or inadequate. Individuals or families who cannot qualify for an SBA loan may be eligible for cash grants of up to $13, 100 to help recover uninsured property losses. Home inspections are normally conducted prior to the issuance of a check. The IFG Program is administered by the State of Colorado and supported by 75 percent federal funding of the total grants awarded. Cora Brown Fund I When Cora C. Brown of Kansas City, Missouri died in 1977, she left a portion of her estate -- $802,000- - to the federal government for the purpose of establishing a special fund to assist victims whose disaster-related needs have not or will not be met by governmental or other relief agencies. Potentially eligible applicants must reside in a county that has been declared .a disaster area by the President for individual assistance. The fund, administered by FEMA as part of the assistance "safety net," is infrequently used. On average, there are only three Cora Brown Fund recipients each year and the average award amount is $2,500, There is currently more than one million dollars in the fund. Potential recipients are identified by FEMA, in cooperation with local volunteer agencies. SBA Disaster Loans I The Small Business Administration (SBA) has several loan programs to help homeowners, renters and business owners recover from a disaster when a declaration is made by the President or by SBA. The programs are designed to assist disaster victims with the process of long-term rebuilding and repair, rather than immediate emergency needs. The three principal SBA disaster programs are: 1. Home Disaster Loans - personal property loans of up to $40,000 are available to homeowners and renters to assist with repair or replacement of lost or destroyed items such as automobiles, clothing and furniture. Real property loans for up to $200,000 may be made to restore an applicant's home to its pre- disaster condition. Upgrades, additions or other structural improvements are ineligible unless required to comply with local building codes. Loans may be increased up to 20 percent, however, in order to protect damaged real property from possible future effects of the same hazard. 2. Business Physical Disaster Loans - direct loans of up to $1.5 million to repair disaster damages can be made to businesses of all sizes and to nonprofit organizations. These loans may also be used to replace business supplies and inventories. 3. Economic Injury Disaster Loans -working capital loans to small businesses and small agricultural cooperatives are also available to provide financial relief during the disaster recovery period. Economic injury loans are available only to owners that cannot obtain this type of assistance from other, non- governmental sources. Loan amounts and the terms of the loans vary according to the borrower's needs and repayment ability. SBA disaster loans are approved based on an applicant's ability to repay, with most loans set at four percent interest and for terms of up to 30 years. Collateral is required on loans in excess of $10,000 and properties located in flood hazard zones are required to have flood insurance. Loan decisions are normally made within one to three weeks after completion of a disaster loan application. ColoRAdo OffiCE of EMERGENCY MANAGEMENT 29