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can repay, indicated by his earnings, when appropriate. If it is necessary as set forth in SBA's regulations to construct a new home, new business or institutional facilities on a different site - for ex- ample, on higher ground because of being located in a flood-prone area - the loan may be used for that purpose. In the case of a loan to an in- dividual, the loan may be used to repair or replace damaged furniture and other household belongings, as well as real estate. A business disaster loan may be used to repair or replace buildings, fixtures, machinery, equipment and inventory, or to meet working capital or operating expense needs caused by the disaster. A loan to a charitable institution or other non-profit organization also may be used to repair or replace buildings, furnishings, machinery or equipment. A disaster loan may, in appropriate cases, be used to repay temporary financing obtained after the disaster, but prior to approval of the SBA loan, to start rehabilitation work. All types of damage to real estate and personal property resulting from physical disasters are covered by SBA disaster loans if an area has been declared a disaster area, unless the disaster victim is eligible for emergency assistance from the Farmers Home Administration or another federal agency. All disaster loans require, as a con- dition of disbursement, that the property being restored be covered by Federal Flood Insurance whenever: . The property is located within a "special flood hazard area" shown on a Federal Insurance Administration map, and . Federal Flood Insurance is available. All other disaster loan recipients must agree to purchase flood in- surance whenever the conditions above are met at any time during the life of the loan. WHAT DISASTER VICTIMS SHOULD DO - Watch for local an- nouncements of SBA disaster loan ac- tivities in newspapers or on radio and 52 television. Application forms for dis- aster loans may be obtained from any SBA office in or near a disaster area or from banks in the area which are cooperating with SBA. The SBA office will assist in completing the application. After filling out an application, the applicant should file it with SBA, along with a listing of the property that was destroyed (including the legal description of real estate), damaged, or lost and an estimate of the cost of repairing or restoring the property to pre-disaster conditions. A contractor's estimate will be helpful, but is not required. SBA will consider each complete application without delay. Persons seeking business disaster loans should prepare a detailed balance sheet as well as a profit and loss statement for the period just prior to the disaster. They also should prepare similar documents for the two preceding calendar or fiscal years. If records have been lost, the necessary information may be obtain- ed from the income tax returns at the office of the Internal Revnue Service. Copies of the last two filed income tax returns must be submitted. The borrower should make every effort to supply needed papers and in- formation promptly to enable SBA to close the loan as quickly as possible. If he does not need the entire loan im- mediately, and does not wish to pay in- terest on funds until they are actually required, he can request that the funds be disbursed as needed. If repairs and/or replacements are made prior to the loan approval, he must keep all receipts and invoices pertaining to such repairs and/or replacements. The SBA does not contract with repairmen or construction outfits. Any contract entered into is the responsibility of the disaster victim. Licensing standards, if any, are im- posed by local authorities and not by the Small Business Administration.