NEW JERSEY COMMUNITIES GET $29.7 MILLION IN DISASTER LOANS

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Release date: 
June 18, 2013
Release Number: 
DR-4086-NJ NR-172

TRENTON, N.J. ­– Seven local jurisdictions have received a total of $29.7 million in Community Disaster Loans through the Federal Emergency Management Agency. The low-interest loan program helps eligible jurisdictions that have suffered substantial revenue losses from a major disaster to perform their governmental functions.

In response to Superstorm Sandy, Congress allocated additional funds to the Disaster Assistance
Direct Loan Program Account. At the request of Gov. Chris Christie, FEMA activated the program
in New Jersey.

“Community Disaster Loans are based on need to bridge the revenue gap so local governments are able to continue to operate after a disaster,” said FEMA Federal Coordinating Officer Gracia Szczech. “Loans are for local government operating expenses such as salaries of police, firefighters and teachers while the community recovers.”

The loans cannot be used as a cost share for any federal grants or for capital projects.

The New Jersey jurisdictions receiving loans as of May 31 are:

  • Borough of Atlantic Highlands, $2,108,876;
  • Borough of Keansburg, $3,954,766;
  • Borough of Little Silver, $1,829,324;
  • Borough of Oceanport, $1,154,931;
  • Toms River Township, $5,000,000;
  • Borough of Sea Bright, $1,297,273; and
  • Toms River Fire District, $1,550,078.

Loans cannot exceed 50 percent of a jurisdiction’s operating budget for the year in which the disaster occurs. The maximum loan is $5 million. Jurisdictions must demonstrate the need for assistance to perform government functions. The term is five years but can be extended to 10 years if the applicant chooses. Interest on the loans equals the rate for five-year maturities determined by the Secretary of the Treasury on the day the note is executed.

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Last Updated: 
June 18, 2013 - 15:16
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