March 6, 2021

Volume XI, Number 65

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March 05, 2021

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March 04, 2021

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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.

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© 2020 Jones Walker LLPNational Law Review, Volume VI, Number 277
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TRENDING LEGAL ANALYSIS

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About this Author

Michael Rhea Commercial Litigation Attorney
Associate

Michael R. Rhea is an associate in the firm's Business & Commercial Litigation Practice Group and practices from the firm's Baton Rouge office. He is a 2012 graduate of the Paul M. Hebert Law Center, Louisiana State University, where he received his juris doctor degree and diploma in civil law, summa cum laude, and was named to the Order of the Coif. Mr. Rhea received his Bachelor of Arts in International Studies and in Political Science from Louisiana State University. While achieving his bachelor's degrees, he also studied abroad in Granada, Spain.

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