FEMA Community Disaster Loan Program

OVERVIEW: The Federal Emergency Management Agency (FEMA) provides direct loans to local governments to offset the loss of tax or other revenues as a result of a major disaster. The local government must demonstrate a need to maintain local governmental functions such as police and fire protection, or water and sewer services. Loans are not to exceed 25% of the local government’s annual operating budget for the fiscal year in which the major disaster occurs, up to a maximum of $5 million.

TIMETABLE: Communities may apply for assistance following a declaration of a major disaster.

APPLICATION PROCESS: The State’s Governor requests a Presidential declaration of an emergency or disaster. An applicant should consult the office or official designated as the single point of contact in the state for more information on the process. Upon declaration, one may apply for assistance through the Governor’s authorized representative. The jurisdiction must demonstrate a need for financial assistance to perform its governmental functions.

FOR MORE INFORMATION: see the FEMA Community Disaster Loan Program page.

TAGS: designated disaster area, funding