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Community Disaster Loan Program

The Community Disaster Loan Program provides funding for local governments to operate their essential community services after substantial revenue loss caused by a disaster.

Several buildings together in a community.

Essential Services

  • Police and fire protection
  • Revenue collection
  • Hazard insurance
  • Trash collection
  • Public facilities maintenance

How to Apply

Step 1: Determine Eligibility

Local governments can apply if they:

  • Are located in a presidentially declared disaster area
  • Experienced a revenue loss greater than or equal to five percent
  • Sustained a revenue loss that affects the current or next fiscal year

Step 2: Financial Evaluation

FEMA will assist the applicant with intake, financial evaluation, explaining the requirements, determining if you are qualified, and helping you to meet submission deadlines.

Step 3: Analysis/Application

FEMA and the applicant prepare the application together during the Loan Open Application Period (LOAP). This is time from the last day of the presidential disaster declaration incident period through the end of your local government’s next fiscal year. You must complete your application before the end of the eligible fiscal year.

Step 4: Application Submission

You will submit your completed application through the governor’s authorized representative in your FEMA regional office.

Step 5: Final Review and Notification

FEMA reviews the loan application and notifies the applicant when it is signed.

Requirements of Community Disaster Loan

If the loan application is approved, your local government must agree to the terms and conditions of the loan, and to FEMA’s maintenance and cancellation procedures.

  • The loan amount will not exceed 25 percent of your local government’s annual operating budget for the fiscal year. The maximum amount is $5,000,000.
  • The applicant must sign the FEMA promissory note. In some cases, the state/tribe/territory co-signs.
  • The standard loan is for five years. However, it may be extended to 10 years depending on circumstances.
  • Interest accrues only on the portion of funds drawn by applicant. Find current interest rates.
  • Funds must be used only to continue or expand existing essential municipal services to meet disaster-related needs.
  • From the second year through the life of the loan, your local government must provide audited financial statements to FEMA.
  • The loan may be cancelled if the local government can show it has a cumulative operating deficit.

Community Disaster Loan Program Information and Resources