DISASTER RECOVERY – Community Disaster Loan Program

DISASTER RECOVERY – Community Disaster Loan Program

  Provides funding for local governments to operate their essential community services after substantial revenue loss caused by a disaster. Essential services include police and fire protection, revenue collection, hazard insurance, trash collection, and public facilities maintenance. The funding can be used to carry on existing essential municipal services or to expand such services to meet disaster-related needs.

Details

• Funding Entity:   Federal Emergency Management Agency
• Funding Type:   Loan
• Funding Range:   The cumulative estimated revenue loss for the fiscal year of the disaster and the subsequent three fiscal years, or up to 25 percent of a municipality’s annual operating budget for the fiscal year, or $5 million, whichever is less.
• Match Required:   None

Notes

  Revenue loss must be greater than or equal to five percent. Audited financial statements for the fiscal year of the disaster and the three previous fiscal years, and an original operating budget for the fiscal year of the disaster, a projected operating budgets for the subsequent fiscal year, and three-year post disaster revenue projections are required to apply. The loan term is five years. It can be extended to 10 years. The applicant selects the payment schedule. The interest rate is determined by the Secretary of the Treasury. From the second year through the life of the loan (5-10 years maximum), a municipality must provide audited financial statements to FEMA. The loan may be cancelled if the municipality can show it has a cumulative operating deficit.