FEMA And SBA Ease Concerns For Older Disaster Victims
Release Date: October 20, 2005
Release Number: 1603-100
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BATON ROUGE, La. -- Some older residents of Louisiana have expressed concerns that applying or receiving state and federal financial assistance may cause them to sacrifice Social Security benefits, pay additional taxes, or give up income-based benefit programs.
The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) and U.S. Small Business Administration (SBA) want elders affected by Hurricanes Katrina and/or Rita to know that their concerns are unfounded. FEMA is offering answers to questions that a lot of older disaster victims are asking.
Col. Jeff Smith, state coordinating officer, said, “A state or federal grant does not add to their taxable income, as long as the grant is given as assistance to recover from a disaster.” This means that grants given by FEMA to elder disaster victims for housing will not add to older recipients’ income and would not require them to repay their Social Security benefit. This also means that a housing grant will not affect Social Security as a taxable income, and they will not have to pay tax on their benefits.
FEMA housing grants will not affect income levels to the point where older residents are no longer eligible for Medicaid, welfare assistance, food stamps or Aid to Families with Dependent Children (AFDC). FEMA grants are not repaid by the recipient.
After a disaster strikes, people who suffered damages must register with FEMA to find out about services that may be available to them. It is also important to apply for an SBA disaster loan. It is vital older persons apply for an SBA loan even if they do not qualify. Applying for a loan is important because it will enable the affected resident to be made eligible for other programs, but the SBA loan application must be completed and submitted first.
Often, many seniors do not receive loans or grants because they do not complete the required process for financial assistance. They should act immediately as these programs are available for a limited time.
Hazard Mitigation Grants Program (HMGP) to make homes and businesses safer from future disasters is no longer considered a taxable improvement by the Internal Revenue Service (IRS). These grants are entirely separate and are not awarded to individuals registering for disaster assistance. Residents must contact their local officials.
Older disaster victims can call FEMA to find out more about housing grants and other programs at 1-800-621-FEMA (3362), or TTY 1-800-462-7585 for people who are speech- or hearing-impaired. Lines are open 24-hours a day, seven days a week until further notice. Hurricane victims may also register online at www.fema.gov or they can get assistance in registering at any Disaster Recovery Center (DRC).
Elder victims of the hurricanes can also contact the SBA to find out how to apply for an SBA loan at the SBA Helpline at 1-800-659-2955 or visit www.sba.gov/disaster. For more information other eldercare issues, there is a national referral service for Eldercare Locators at 1-800-677-1116.
FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
SBA is the federal government’s primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps homeowners, renters, businesses of all sizes, and private non-profit organizations fund repairs or rebuilding efforts, and cover the cost of replacing lost or disaster-damaged personal property. These disaster loans cover uninsured and uncompensated losses and do not duplicate benefits of other agencies or organizations.
Last Modified: Thursday, 20-Oct-2005 13:57:20