Community Disaster Loans

To provide loans subject to Congressional loan authority, to any local government that has suffered substantial loss of revenues in an area in which the President designates a major disaster in order to assist communities affected by an incident to recover effectively in accordance with PPD-8.

The
funds can only be used to maintain existing functions of a municipal operating character and the local government must demonstrate a need for financial assistance.

Agency - Department of Homeland Security

The Department of Homeland Security has three primary missions: Prevent terrorist attacks within the United States, reduce America's vulnerability to terrorism and minimize the damage from potential attacks and natural disasters.

Office - See Regional Agency Offices.

See Appendix IV of the Catalog for a listing of addresses for FEMA's Regional Offices.
Website Address

http://www.dhs.gov




Program Accomplishments

Fiscal Year 2016: Completed pre-population of cancellation qualification analysis for 51 active loans in the State of New Jersey (DR-4086). Performed intakes with 51 DR-4086-NJ loan applicants where we obtained financial data for loan cancellation qualification analysis and clarified accounting lines in applicant?s financial files. Activated CDL Program for major disaster declarations, per State requests received. Issued CDL cancellation determinations for: 1 DR-4030-PA (determination date 12/2015) Maintenance of 70 active CDLs. Issued 2 new loans. Activated Program for DR-4241-SC. Fiscal Year 2017: Work on loan applications for active disasters: DR-4273-WV, DR-4263-LA, DR-4277-LA, and DR-4286-SC. Performed 28 loan presentations and application interviews. Calling outreach to over 330 communities within declared disaster zones in 3 states. Complete cancellation analysis and determinations for: 2 DR-1972-MS loans (2017.01.09 Tunica County; 2017.01.24 Wilkinson County) 1 DR-1980-MO loan 34 DR-4086-NJ loans (out of 51 active loans) ? applicants following FY16 17 DR-4086-NJ loans (out of 51 active loans) ? applicants following FY17 Closing of 9 inactive loans. 1 Delinquent Loan Collection for American Samoa Issued 9 new loans. Fiscal Year 2018: Review the following loans for cancellation qualification: 4174AR01 4145CO01 4184IA01, 4184IA02 4175MS01, 4175MS02, 4175MS03, & 4183NE01.

Uses and Use Restrictions

Loans are made only to local governments or other political subdivisions of the State, and are based on need.

The funds cannot be used to meet the non-federal share of any Federal program, finance capital improvements, or repair or restore public facilities.

Applicants must be in a designated major disaster area and must demonstrate that they meet the specific conditions of FEMA Disaster Assistance Regulations 44 CFR Part 206, Subpart K, Community Disaster Loans.

To be eligible, the applicant must demonstrate: 1) a substantial loss of revenues as a result of a major disaster; 2) a need for financial assistance to perform its governmental functions.

The amount of the loan is based on the demonstrated need and equal to 25% of applicant?s Operating Budget or $5 million, whichever is lower.

The interest rate is the U. S. Treasury rate for 5-year maturities on the date the Promissory Note is executed, adjusted to the nearest 1/8th.

When applicable, if an applicant can demonstrate unusual circumstances involving financial hardship, the Assistance Administrator of the Disaster Assistance Directorate may approve a rate equal to the 5-year maturity rate plus 1 per centum, adjusted to the nearest 1/8th, and further reduced by one-half.

The term of the loan is usually 5 years, but may be extended.

Interest accrues on the funds as they are disbursed.

When applicable, the Assistance Administrator of the Disaster Assistance Directorate may cancel repayment of all or part of the loan if the revenues of the applicant in the 3 fiscal years following the financial year of the disaster are insufficient to meet the operating budget because of disaster-related revenue losses and un-reimbursed disaster related operating expenses.

Eligibility Requirements

Applicant Eligibility

Applicants must be in a designated major disaster area and must demonstrate that they meet the specific conditions of FEMA Disaster Assistance Regulations 44 CFR Part 206, Subpart K, Community Disaster Loans.

To be eligible the applicant must demonstrate: 1) a substantial loss of revenues as a result of a major disaster; 2) a need for financial assistance to perform its governmental functions.

Beneficiary Eligibility

Local governments in a designated disaster area.

Credentials/Documentation

The loan application is developed from financial information contained in the local government's published financial reports and current annual operating budget. Loan awards will be determined in accordance with OMB Circulars No. A-102 and No. A-87 for State and local governments. Awards made to Institutions of Higher Education, Hospitals and Other Non-Profit Organizations will be required to follow the requirements of OMB Circulars No. A-110 and No. A-21. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Aplication and Award Process

Preapplication Coordination

The State Governor makes a request for a Presidential declaration of a major disaster through the FEMA Regional Director.

Environmental impact information is not required for this program.

This program is eligible for coverage under E.O.

12372, 'Intergovernmental Review of Federal Programs.' An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Upon declaration of a major disaster, application for a Community Disaster Loan is made through the Governor's Authorized Representative to the Regional Director of FEMA in accordance with FEMA Disaster Assistance Regulations, 44 CFR §206.364. The Assistant Administrator of the Disaster Assistance Directorate approves or disapproves the loan. The Designated Loan Officer will execute a Promissory Note with the applicant. The promissory note must be co-signed by the State, or if the State cannot legally co-sign the note, the local government must pledge collateral security.

Award Procedures

Funds are disbursed to the local government when requested in accordance with the Schedule of Loan Increments in the Promissory Note, or submittal of Disbursement Request Form. Funds awarded to Institutions of Education, Hospitals and Other Non-Profit Organizations will follow requirements of OMB Circulars No. A-110, No. A-21 and No. A-133.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

Robert T. Stafford Disaster Relief and Emergency Assistance Act, Section 417, 42 U.S.C 5184.

Range of Approval/Disapproval Time

From 1 to 6 months. The loan must be approved in the fiscal year of the disaster or the financial year immediately following.

Appeals

If a loan application is disapproved, in whole or in part, a revised application may be resubmitted by the local government within 60 days of the date of the disapproval.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. Matching requirements are not applicable to this program. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Funds are transferred by FEMA Finance into the account established by Health and Human Services for each applicant in HHS? Payment Management System (PMS). Disbursements are requested by the applicant from the PMS to the established local government?s bank account for the loan. See the following for information on how assistance is awarded/released: Payment based on Project need.

Post Assistance Requirements

Reports

The applicant must demonstrate a financial need prior to any incremental disbursement by submitting a copy of its most recent financial report as well as data on anticipated and actual revenues.

The applicant annually must submit copies of its annual financial reports.

Refer to program guidance.

Refer to program guidance.

Refer to program guidance.

Refer to program guidance.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. These audits are due to the cognizant Federal agency, submitted through the Federal Audit Clearinghouse, not later than 9 months after the end of the grantees fiscal year.

Records

Annual Operating Budgets including revenue and expense and balance sheets must be retained for the duration of the loan. Additional record requirements are detailed in the Federal Disaster Assistance Regulations, 44 CFR 206, Subpart K.

Financial Information

Account Identification

70-0703-0-1-453.

Obigations

(Direct Loans) FY 16 $707,002; FY 17 est $44,644,874; and FY 18 est $82,728,480 - Obligations for FY17 and FY18 will be based on major disaster declarations and applications submitted by disaster impacted communities. For the purpose of projecting budget amounts, we used available subsidy and used current subsidy rates to determine our loan issue capacity as our projections. As of today, seven major disaster declarations are open (DR-4263 & 4277-LA, DR-4273-WV, DR-4241 & 4286-SC, and DR-4281 & 4289-IA) with number of application fluctuating by deadline to obtain a loan for each declaration, per Program Regulations).

Range and Average of Financial Assistance

None.

Regulations, Guidelines, and Literature

Federal Disaster Assistance Regulations, 44 CFR Part 206, Subpart K.

Information Contacts

Regional or Local Office

See Regional Agency Offices. See Appendix IV of the Catalog for a listing of addresses for FEMA's Regional Offices.

Headquarters Office

Martha M. Polanco 500 C Street, SW Mail Stop #3163, Washington, District of Columbia 20472 Email: Martha.Polanco.2@fema.dhs.gov Phone: (202) 646-5761

Criteria for Selecting Proposals

Not Applicable.


Red Thread Good Coffee's creator, Lynda Sylvester, wants to bring philanthropy to the proletariat. Her Sag Harbor-based business donates two cents of every cup of coffee it sells to local charitable organizations.




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