Seniors Receiving Disaster Aid Do Not Lose Benefits 

Release Date: October 24, 2008
Release Number: 1800-018

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CHICAGO, Ill. -- Illinois seniors can be assured that applying for or receiving federal disaster assistance will not cause them to lose Social Security benefits, pay additional taxes, or give up any benefit programs they are receiving.

Additionally, disaster grants from the U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) do not affect eligibility for income-based programs such as Medicaid, welfare assistance, food stamps, Supplemental Security Income (SSI), or Aid to Families with Dependent Children.

"Disaster assistance will not add to the taxable income of any Illinois senior who is eligible for federal funds," said FEMA Deputy Federal Coordinating Officer Ken Tingman. "We want seniors to know they will keep all of their Social Security benefits and that any grants FEMA gives them will not have to be paid back."

Any senior who sustained losses from the severe storms and flooding Sept. 13-Oct. 5 and lives in Cook, DeKalb, DuPage, Grundy, Kane, LaSalle or Will County should register with FEMA. To register, call 800-621-FEMA (3362), TTY 800-462-7585 or online at www.fema.gov.

Once registered with FEMA, applicants may receive a U.S. Small Business Administration (SBA) disaster loan application in the mail. The application should be filled out and returned.

If SBA offers a low-interest disaster loan and the applicant accepts it, the loan will have to be repaid. However, no one is ever required to accept a loan.

If the SBA deems the homeowner or renter to be ineligible for a loan, the SBA will forward the information to FEMA. At that point, FEMA can consider the applicant for additional grant money that is only available to people who have been turned down for loans from the SBA.

Seniors who have questions about their SBA disaster loan application can contact the SBA Disaster Customer Service Center at 800-659-2955 or online at www.sba.gov/disaster.

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: Friday, 24-Oct-2008 13:13:02