FEMA Issues Community Disaster Loans to Two Louisiana Communities 

Release Date: December 14, 2005
Release Number: 1603-225

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BATON ROUGE, La. -- The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) disbursed $759,000 in Community Disaster Loans (CDL) to two Louisiana communities. The city of Mandeville received $650,000 and the town of Abita Springs received $109,000. These funds will be used to assist these communities with providing essential services as they recover from Hurricane Katrina.

"Community Disaster Loans are a valuable tool to help communities maintain essential services in the aftermath of a disaster. With these disbursements, FEMA is helping ensure the recovery process continues in these communities," said Federal Coordinating Officer Scott Wells. FEMA is collaborating with communities throughout the Gulf Coast to speed the loan application process and send much-needed money to affected areas.

To date, FEMA has approved more than $300 million in Community Disaster Loans in Louisiana. FEMA is working with CDL applicants throughout Louisiana on their loan applications. Once FEMA approves the application, the applicant must sign promissory notes as well as collateral security and other documents. Once those documents are received by FEMA, funds can be transferred to the applicant's account.

In October, Congress passed the Community Disaster Loan Act of 2005, which authorizes up to $1 billion for loans to "assist local governments in providing essential services." Loans can be made to any local government in need of financial assistance to perform essential services. CDL applicants include fire and police departments that provided critical community services during and in the immediate aftermath of the hurricanes, as well as school boards, district court offices, and local parish governments.

For more information about Community Disaster Loan efforts, visit www.fema.gov/rrr/pa/fs_cdl.shtm.

Last Modified: Thursday, 15-Dec-2005 08:42:32