Businesses impacted by devastating storms may qualify for federal assistance

Following a string of devastating spring storms and rising flood waters threatening several parts of the state, U.S. Senator Claire McCaskill is encouraging local small businesses to contact the U.S. Small Business Administration (SBA) for assistance in preparing for and recovering from natural disasters. The SBA offers several types of financial assistance for businesses and nonprofit organizations that have suffered physical damage or economic injury. Businesses that have not yet been affected can contact SBA to learn how to best prepare in the event of flooding or other natural disasters.

“Small businesses are the engine of our economy and ensuring they have the resources they need to begin the rebuilding process after disaster strikes is a critical step in helping our communities get back on their feet,” McCaskill said. “The SBA has begun working with businesses hit hardest this past spring and they’re prepared to continue to help across the state with other Missouri businesses that have experienced the devastating effects of natural disasters.”

The SBA has provided a detailed fact sheet on its website to help business owners find the type of assistance that best suits their needs. Once an area has formally been declared a disaster area, businesses of any size and private, non-profit organizations may apply to the SBA for low-interest loans of up to $2 million to repair or replace damages resulting from a disaster. So far this year, the SBA has provided over $20.1 million in disaster loans for areas of Missouri hit by severe storms, including $15.4 million in disaster loans for property and business loses as a result of the devastating tornado that hit Joplin last month.

Even if a small business does not experience property damage in a disaster, a small business owner or nonprofit organization may apply for a working capital loan from the SBA if it experiences economic injury from a disaster.

On Sunday, McCaskill will tour flood damaged areas and meet with local officials and business owners who are planning for how to recover.

Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling SBA toll-free at (800) 659-2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s Website. Hearing impaired individuals may call (800) 877-8339.

Beware Of Scam Artists

The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) cautions Missouri survivors of the recent severe storms, flooding and tornadoes to be on the lookout for scam artists pretending to be employed by FEMA or another government agency, such as the U.S. Small Business Administration (SBA).

Historically, disasters bring out the very best in people and there are countless stories of neighbors helping neighbors. Unfortunately, our experience shows us that disasters also bring out the worst in some people and storm survivors should be vigilant in protecting their personal assets, particularly when living in such a stressful environment.

“Consumers should keep in mind that a FEMA or SBA shirt or jacket is not absolute proof of someone’s affiliation with these agencies,” said FEMA’s Federal Coordinating Officer Libby Turner. “The best way to verify authorized FEMA or SBA personnel is by checking their laminated photo identification card, which they are required to wear at all times.”

One common fraudulent scheme involves con artists going door-to-door of damaged homes, or phoning victims, and soliciting personal information such as social security and bank account numbers. Consumers should know that FEMA inspectors never require this information. A social security or bank account number is requested during the first phone call to the FEMA registration line. On any follow-up calls, a FEMA representative may ask for the last four digits of your social security number but never the whole number.

There have been reports, during earlier disasters, of scammers telling homeowners they need to pay $1,500 to be put on a list to get their home repaired. Other reports have surfaced of persons pretending to be from the SBA and offering to fill out disaster loan applications for a $50 fee. Survivors should remember that under no circumstances are FEMA or SBA representatives allowed to accept money. FEMA staff registers all applicants without charge and experts are located at Disaster Recovery Centers to assist storm survivors with their application for disaster aid. Also, there is never a charge to be placed on a “FEMA List” or to have SBA representatives assist applicants with their disaster loan application.

Other points to keep in mind to avoid becoming a fraud victim:

•Check on a contractor’s licensing status with local or State licensing agencies. Check with the local Better Business Bureau, homebuilders association or trade council to see if the contracting firm has any unanswered complaints against it;
•Be suspicious of anyone who offers to increase the amount of your disaster damage assessment;
•Ask for proof of insurance. If a contractor is uninsured, you may be liable for accidents on your property. Make sure the contractor has both disability and worker’s compensation insurance;
•Ask for a written estimate and check to make sure it includes all work you expect to have done, as well as taxes and other fees. Keep in mind that some contractors charge for an estimate;
•Once you decide to use a particular contractor, ask for a written contract that includes all tasks to be performed as well as associated costs, a timeline and payment schedule, and who is responsible for necessary permits and licenses. Never sign a blank contract;
•Do not give anyone an advance cash payment. Pay by check in order to keep a record and avoid double charges;
•Legitimate contractors normally do not require more than one-third of the total charges as a down payment;
•Ask for a written guarantee that states what is covered, who is responsible and how long the guarantee is valid;
• If you feel uncomfortable about a contract and have already signed it, cancel it quickly. You may cancel some contracts within three business days after signing. Be sure to follow the contract cancellation clause procedures.
If you think you have been victimized by fraud or suspect fraudulent activity, please report it to the Missouri State Attorney General’s office at 1-573-751-3321.

SBTDC offering course to help businesses broaden their markets

Northwest Missouri State University’s Center for Innovation and Entrepreneurship, in conjunction with Missouri Procurement Technical Assistance Centers and the University of Missouri Extension, is offering a three-hour course aimed at helping businesses broaden their markets.

“Winning Government Contracts: The First Steps” covers basic information every business owner should know before attempting to bid on government contracts at any level.

Topics of discussion will include background on government contracting, U.S. Small Business Administration size standards, marketing to the government, vendor registrations, government certifications, purchasing methods and Procurement Technical Assistance Center services.

The course will be offered from 1 to 4 p.m. Wednesday, April 20, at the Northwest Center for Innovation and Entrepreneurship, Room 1323, located at 1402 North College Drive in Maryville.

The fee for the course is $50 per person, payable in cash or check to MO PTAC.

For more information, contact Dr. Frank Veeman, senior regional director of the Small Business & Technology Development Center, at 660.562.1701 or fveeman@nwmissouri.edu.

The 46,679-square-foot Center for Innovation and Entrepreneurship is a mixed-use business incubator and academic research facility, featuring state-of-the-art research labs and office space. Along with programming specializing in nanotechnology, the CIE provides entrepreneurial support to students, faculty and area industries.

The Northwest SBTDC assists clients in 17 counties spanning from Atchison County, southward to Platte County and eastward to Livingston County. In addition to the regional office located on the Northwest Missouri State University campus, a Chillicothe office serves the eastern portion of the region, and a St. Joseph office serves the southern section.