FEMA Has Authorized Disaster Loans For Local Governments
FEMA has approved the Community Disaster Loan for Louisiana, which will provide aid to local governments affected by the historic flooding events of 2016 in South Louisiana. This program will provide loans directly to local governments that experienced substantial loss of tax and other revenue following the flooding. Funds provided through this program will be used on existing government functions or expansions to meet disaster needs.
These loans are for five years but can be extended to ten. They may not exceed the lesser of 25% of the local government’s operating budget for the fiscal year in which the disaster occurred or a cumulative estimated revenue loss for the fiscal year in which the disaster occurred and the following three fiscal years. If the estimated revenue loss for the fiscal year of the disaster is at least 75% of the applicant government’s operating budget for that fiscal year, the loan may be 50% of the local government’s operating budget for the fiscal year of the disaster, but in no event shall it exceed $5 million.