Disaster Loans Aimed At Helping Communities Pay Operating Costs
Release Date: December 30, 2008
Release Number: 1791-353
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AUSTIN, Texas -- With clean-up and repair efforts well under way along the upper Texas Gulf Coast following the Hurricane Ike disaster, the Federal Emergency Management Agency (FEMA) is now kicking off a loan program aimed at helping local governments provide essential services while they recover from the storm.
The city of Galveston and the Galveston Park Board are expected to be among the first to receive low-interest loans under FEMA's Community Disaster Loan program for Hurricane Ike. Carried out in partnership with the state of Texas, the program provides operational funding to help local governments that have experienced a significant loss in revenue as a result of the disaster.
"This program is vital because it can keep communities from going under while they rebuild their revenues," said Brad Harris, FEMA's acting federal coordinating officer. "Among other things, these loans help pay the salaries of firefighters, police officers and other essential personnel."
Galveston's application for a $5 million loan, the maximum allowed under the program, and the Galveston Park Board's $4.6 million loan request are now moving through the approval process, while the Sabine Pass Port Authority and the Chambers-Liberty Counties Navigation District have each submitted their eligibility certificates for the program.
"As with any loan application certain requirements must be met," said State Coordinating Officer Joan Haun. "But we strongly encourage other hard-hit local governments to consider applying for this excellent program."
To qualify for the program, local governments must, among other things, demonstrate that they suffered a substantial loss (greater than 5 percent) of tax and other revenues for the current or succeeding year as a result of the major disaster. Also, the disaster must have adversely affected the level of essential municipal services provided.
The funds must be used to carry on existing operations or to expand the local government's essential functions to meet disaster-related needs. The term of the loan is five years, although it can be extended to 10 years, with the applicant selecting the payment schedule. Additionally, in worst-case scenarios, there is a provision for loan cancellation.
To initiate the application process, local governments should complete the form "Certification of Eligibility for Community Disaster Loan" and submit it to the state's representative, Lucy Gunter, at lucy.gunter@txdps.state.tx.us. Those wanting more information from FEMA on the program, should contact Shoshana Resnick at shoshana.resnick@dhs.gov.
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
Last Modified: Tuesday, 30-Dec-2008 12:58:43