FEMA and SBA Disaster Assistance for
Individuals and Households: Application
Processes, Determinations, and Appeals
Updated November 3, 2022
Congressional Research Service
https://crsreports.congress.gov
R45238

FEMA and SBA Disaster Assistance for Individuals and Households

Summary
The Smal Business Administration’s (SBA’s) Disaster Loan Program and the Federal Emergency
Management Agency’s (FEMA’s) Individual Assistance (IA)—Individuals and Households
Program (IHP) are the federal government’s primary sources of financial assistance to help
individuals and households recover and rebuild following an incident. In many cases, disaster
survivors need assistance from both programs in addition to other sources of assistance, including
private insurance, state and local government assistance, and assistance from voluntary
organizations.
Although the SBA Disaster Loan Program and FEMA’s IHP are separate programs administered
by different agencies, in many ways they are interconnected. SBA and FEMA share real-time data
on disaster loan and grant approvals to identify potential duplication of benefits while providing
individuals and households with federal assistance that can be used in conjunction with other
forms of assistance to meet recovery needs. The programs are also interconnected in the way they
are administered to determine loan and grant eligibility. Eligibility and assistance from one source
can affect eligibility and assistance from the other source.
It could be argued that the overlap between the programs provides an effective means to identify
duplication of benefits and provide federal assistance; however, the interconnectedness also
causes some confusion. Some in Congress are concerned that the application process itself results
in confusion and added burden on disaster survivors because FEMA refers IHP applicants who
meet the SBA’s minimum income test to first apply for a low-interest SBA disaster loan before
they are eligible to receive SBA-Dependent Other Needs Assistance (ONA) through the IHP,
which requires applicants for assistance to submit two separate applications—one to FEMA and
one to the SBA. Also, confusion can arise with regard to how decisions are made with respect to
whether an applicant should be provided a loan or a grant (or both).
This report provides an overview of these two programs, including discussions about
 how different types of declarations put the programs into effect;
 the application process for both programs;
 the criteria used by the SBA and FEMA to determine eligibility for assistance and
the appropriate types of assistance; and
 the FEMA and SBA appeals processes.
The report concludes with policy observations and considerations for Congress about the
application process, the use of income tests as a screening device for SBA disaster loans and
FEMA grants, and the use of computer matching agreements to prevent a duplication of benefits.
Resources are also provided.
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FEMA and SBA Disaster Assistance for Individuals and Households

Introduction
Individuals and households that suffer uninsured or underinsured losses caused by an incident1
that results in an emergency or major disaster declaration typical y apply for assistance through
the Individuals and Households Program (IHP), a form of Individual Assistance (IA)
administered by the Federal Emergency Management Agency (FEMA).2 They may also apply for
disaster loans, administered by the Smal Business Administration (SBA).3 This report opens with
an overview of the two programs and a discussion about how declarations, including presidential
declarations of emergency or major disaster under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Stafford Act; P.L. 93-288, as amended; 42 U.S.C. §§5121 et seq.),
and SBA declarations under the Smal Business Act (P.L. 83-163, as amended; 15 U.S.C. §§631
et seq.), are used to put them into effect. This report also discusses the application processes and
eligibility criteria used by the SBA and FEMA to make loan and grant determinations,
respectively. The report then describes the appeals processes, and concludes with policy
observations and potential considerations for Congress about computer matching agreements,
duplication of benefits, and the use of income tests as a screening device for SBA disaster loans
and FEMA grants.
The SBA Disaster Loan Program and FEMA IA are interlaced to a certain degree. Functional y,
the SBA and FEMA have a computer matching agreement (CMA) to share real-time data on
assistance provided to applicants.4 The SBA and FEMA use the interface between their systems to
identify and prevent a duplication of benefits (DOB) because the SBA disaster loans and FEMA
grants both provide assistance for damage to personal property and transportation, and can be
used for Group Flood Insurance Policy assistance.5 The CMA also helps determine loan and grant
eligibility because, from an administrative perspective, eligibility and assistance from one source
can impact eligibility and assistance from the other source.6
While the overlap between the two programs may have some benefits, it arguably also causes
some confusion. For instance, some Members have expressed concern regarding the interrelated

1 44 C.F.R. §206.32(e) defines an incident as “[a]ny condition which meets the definition of major disaster or
emergency as set forth in §206.2 which causes damage or hardship that may result in a Presidential declaration of a
major disaster or an emergency.”
2 When an emergency or major disaster is declared, areas of the impacted state are “designated” as having been deemed
eligible for federal assistance (44 C.F.R. §206.2(a)(6)). A designated area is “ [a]ny emergency or major disaster-
affected portion of a State which has been determined eligible for Federal assistance.” Designated areas may include
counties, parishes, or t ribal lands, as well as municipalities, villages, or districts (Federal Emergency Management
Agency (FEMA), Individuals and Households Program Unified Guidance (IHPUG) , FP 104-009-03, September 2016,
p. 3, https://www.fema.gov/sites/default/files/2020-05/IHP_Unified_Guidance_FINAL_09272016_0.pdf (hereinafter
FEMA, IHPUG); FEMA, Individual Assistance Program and Policy Guide (IAPPG) , FP 104-009-03, May 2021, p. 41
https://www.fema.gov/sites/default/files/documents/fema_iappg-1.1.pdf (hereinafter FEMA, IAPPG)).
3 For more information about Individual Assistance (IA), see CRS In Focus IF11298, A Brief Overview of FEMA’s
Individual Assistance Program , by Elizabeth M. Webster and CRS Report R46014, FEMA Individual Assistance
Program s: An Overview, by Elizabeth M. Webster. For more information on SBA disaster loans, see CRS Report
R41309, The SBA Disaster Loan Program : Overview and Possible Issues for Congress, by Bruce R. Lindsay; and CRS
Report R44412, SBA Disaster Loan Program : Frequently Asked Questions, by Bruce R. Lindsay.
4 U.S. Small Business Administration (SBA), “Computer Matching Agreement Between U.S. Small Business
Administration and U.S. Department of Homeland Security, Federal Emergency Management Agency,” 84 Federal
Register 2649-2657, February 7, 2019, https://www.govinfo.gov/content/pkg/FR-2019-02-07/pdf/2019-01508.pdf
(hereinafter SBA, “ Computer Matching Agreement ”).
5 SBA, “Computer Matching Agreement,” 84 Federal Register 2651.
6 SBA, “Computer Matching Agreement,” 84 Federal Register 2650-2651.
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but separate applications for FEMA IHP assistance and SBA disaster loans, and some Members
have asked for clarification concerning how decisions are made with respect to the application of
the SBA’s income test and determining whether an applicant is eligible for a loan, grant, or both.
Overview of Programs
The following sections provide descriptions of the SBA and FEMA programs that provide
assistance to individuals and households. In many cases, disaster survivors find that they need
assistance from both programs in addition to other sources of assistance, including private
insurance, state and local government assistance, and assistance from voluntary organizations, to
fully recover.
SBA Home Disaster Loans
Homeowners, renters, and personal property owners located in a declared disaster area are
eligible to apply for an SBA home disaster loan.7 SBA home disaster loans can be conceptualized
as two categories of loans according to how the proceeds are put to use: Personal Property Loans
and Real Property Loans. These loans cover only uninsured or underinsured property and primary
residences in a declared disaster area.
Personal Property Loans
A Personal Property Loan provides a creditworthy homeowner or renter located in a declared
disaster area with up to $40,000 to repair or replace personal property owned by the disaster
survivor.8 Eligible items include furniture, appliances, clothing, and automobiles damaged or lost
in a disaster. Eligibility of luxury items with functional use, such as antiques and rare artwork, is
limited to the cost of an ordinary item meeting the same functional purpose. Interest rates for
Personal Property Loans cannot exceed 8% per annum, or 4% per annum if the applicant is found
by SBA to be unable to obtain credit elsewhere. General y, borrowers pay equal monthly
instal ments of principal and interest, beginning five months from the date of the loan. Loan
maturities may be up to 30 years.
Real Property Loans
Real Property Loans provide creditworthy homeowners with uninsured or underinsured loss
located in a declared disaster area with up to $200,000 to repair or replace the homeowner’s
primary residence to its pre-disaster condition.9 The loans may not be used to upgrade a home or
build additions to the home, unless the upgrade or addition is required by city or county building
codes, such as a code-required elevation. Repair or replacement of landscaping and/or
recreational facilities cannot exceed $5,000. A homeowner may borrow funds to cover the cost of
improvements to protect their property against future damage (e.g., elevation, retaining wal s,
sump pumps, etc.). Mitigation funds may not exceed 20% of the disaster damage, as verified by
SBA, to a maximum of $200,000 for home loans.10 As previously mentioned, interest rates cannot
exceed 8% per annum, or 4% per annum if the applicant is unable to obtain credit elsewhere.

7 SBA, “Disaster Loan Assistance: Home and Personal Property Loans,” https://disasterloanassistance.sba.gov/ela/s/
article/Home-and-Personal-Property-Loans.
8 13 C.F.R. §123.105(a)(1).
9 13 C.F.R. §123.105(a)(2).
10 13 C.F.R. §123.107.
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General y, borrowers pay equal monthly instal ments of principal and interest, beginning five
months from the date of the loan. Loan maturities may be up to 30 years.
FEMA Individual Assistance
Various types of FEMA IA may be provided to disaster survivors, depending on whether an
emergency or major disaster is declared, and the type(s) of IA requested by the governor of the
affected state/territory or the tribal chief executive of the affected Indian tribal government and
authorized by FEMA.11 FEMA’s IA program includes (1) Mass Care and Emergency Assistance,
(2) the Crisis Counseling Assistance and Training Program, (3) Disaster Unemployment
Assistance, (4) Disaster Legal Services, (5) Disaster Case Management, and (6) the Individuals
and Households Program.12 The Individuals and Households Program provides assistance to meet
the housing and other needs of disaster survivors, and is the IA program that is often the subject
of the most congressional interest. A brief description of each form of IA is included below.
Mass Care and Emergency Assistance
Mass Care and Emergency Assistance (MC/EA) involves the provision of life-sustaining services
to disaster survivors prior to, during, and following an incident through short-term recovery.13
MC/EA includes seven service “activities”: (1) sheltering; (2) feeding; (3) distribution of
emergency supplies; (4) support for individuals with disabilities and others with access and
functional needs; (5) reunification services for adults and children; (6) support for household pets,
service animals, and assistance animals; and (7) mass evacuee support.14
Crisis Counseling Assistance and Training Program
FEMA provides Crisis Counseling Assistance and Training Program (CCP)15 grant funding to
local, state, territorial, and Indian tribal governments to provide CCP services or contract with
local mental health service providers for CCP services.16 The CCP supplements efforts to assist
disaster survivors and communities recovering from the effects of a disaster through community-
based outreach and the provision of services, such as crisis counseling, psycho-education, coping
skil s development, and linking disaster survivors with other resources, such as individuals and

11 For additional information on the FEMA IA programs, see the FEMA, IAPPG. See also CRS In Focus IF11298, A
Brief Overview of FEMA’s Individual Assistance Program , by Elizabeth M. Webster and CRS Report R46014, FEMA
Individual Assistance Program s: An Overview, by Elizabeth M. Webster. For more information about the disaster
declaration process, see FEMA, “ How a Disaster Gets Declared,” https://www.fema.gov/disaster/how-declared
(hereinafter FEMA, “ How a Disaster Gets Declared”). See also CRS Report R43784, FEMA’s Disaster Declaration
Process: A Prim er, by Bruce R. Lindsay.
12 T he Individuals and Households Program (IHP) is the only form of IA that may be authorized under an emergency
declaration; however, all forms of IA may be available following a declaration of major disaster. See FEMA, “ How a
Disaster Gets Declared.”
13 FEMA, IAPPG, p. 6.
14 FEMA, IAPPG, p. 6.
15 42 U.S.C. §5183; 44 C.F.R. §206.171; see also FEMA, IAPPG, pp. 203-233; Substance Abuse and Mental Health
Services Administration (SAMHSA), “ Crisis Counseling Assistance and T raining Program (CCP),”
https://www.samhsa.gov/dtac/ccp; SAMHSA, “ Crisis Counseling Assistance and T raining Program (CCP) T oolkit ,”
https://www.samhsa.gov/dtac/ccp-toolkit ; and FEMA, Crisis Counseling Assistance and Training Program Guidance:
CCP Application Toolkit, Version 5.2, October 2021, https://www.samhsa.gov/sites/default/files/dtac/ccptoolkit/fema-
ccp-guidance.pdf.
16 FEMA, IAPPG, p. 203.
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agencies that help survivors in the recovery process.17 CCP also provides support by linking the
disaster survivor with other resources, such as individuals and agencies that help survivors in the
recovery process. The program provides short- to intermediate-term assistance to support mental
and emotional health needs; two CCP programs provide assistance for different lengths of time:
(1) the Immediate Services Program provides funding for up to 60 days following a major
disaster declaration; and (2) the Regular Services Program provides funding for up to 9 months
from the notice of award.18
Disaster Unemployment Assistance
Disaster Unemployment Assistance (DUA) provides temporary benefits to individuals who were
previously employed or self-employed, were rendered jobless or whose employment was
interrupted as a direct result of a major disaster, and are ineligible for regular unemployment
insurance.19 DUA may also provide reemployment assistance.20 DUA benefits may continue for
up to 26 weeks following the declaration of a major disaster.21
Disaster Legal Services
Disaster Legal Services (DLS) are provided for free to low -income individuals who require them
as a result of a major disaster.22 The provision of services is “confined to the securing of benefits
under the [Stafford] Act and claims arising out of a major disaster.”23 Assistance may include help
with insurance claims, drawing up new wil s and other legal documents lost in the disaster, help
with home repair contracts and contractors, and appeals of FEMA decisions.24 DLS is provided
through an agreement with the American Bar Association’s Young Lawyers Division.25 Neither
the statute nor the regulations establish cost-share requirements or time limitations for DLS.
Disaster Case Management
The Disaster Case Management (DCM) program partners case managers with disaster survivors
to develop and implement disaster recovery plans that address their unmet needs.26 The program
is time-limited; two DCM programs provide assistance for different lengths of time: (1)
Immediate Disaster Case Management provides short-term services to address immediate
disaster-caused unmet needs, and refer disaster survivors to resources (90-180 days unless

17 FEMA, IAPPG, p. 8. Figure 40 in FEMA’s IAPPG lists and describes the available Crisis Counseling Assistance and
T raining Program (CCP)-funded services (see FEMA, IAPPG, p. 206).
18 T he CCP Immediate Services Program (ISP) is described 44 C.F.R. §206.171(f) and FEMA, IAPPG, pp. 209-217.
T he CCP Regular Services Program (RSP) is described 44 C.F.R. §206.171(g) and FEMA, IAPPG, pp. 218-225.
19 FEMA, IAPPG, p. 239. For more information on DUA, see CRS Report RS22022, Disaster Unemployment
Assistance (DUA), by Julie M. Whittaker.
20 FEMA, IAPPG, pp. 239.
21 42 U.S.C. §5177; FEMA, IAPPG, p. 239.
22 For the purposes of Disaster Legal Services (DLS), low-income disaster survivors are those “who have insufficient
resources to secure adequate legal services, whether the insufficiency existed prior to or resulted from the major
disaster” (FEMA, IAPPG, p. 236).
23 44 C.F.R. §206.164(e); 42 U.S.C. §5182.
24 FEMA, IAPPG, pp. 8 and 235.
25 FEMA, IAPPG, p. 8.
26 42 U.S.C. §5189d. Disaster recovery plans include “resources, decision-making priorities, providing guidance, and
tools to assist disaster survivor” (FEMA, IAPPG, p. 8).
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extended); and (2) Disaster Case Management provides longer-term services (up to 24 months
from the declaration date, which may be extended for 90 days pursuant to a written request by the
affected state, territory, or tribe).27
Individuals and Households Program
The Individuals and Households Program (IHP) is the primary vehicle for FEMA assistance to
individuals and households after the President issues an emergency or major disaster declaration,
when authorized.28 It is intended to meet basic needs and support recovery efforts, but it cannot
compensate disaster survivors for al losses.29 Under the IHP, financial assistance (i.e., funding
provided to an applicant) and/or direct assistance (i.e., assistance provided by
FEMA/state/territorial/Indian tribal government) may be available to eligible individuals and
households who have uninsured or underinsured necessary expenses and serious needs, as a result
of a disaster, that cannot be met through other means or forms of assistance.30 There are two
categories of IHP assistance: Housing Assistance, and Other Needs Assistance (ONA) (see Table
1 for the subcategories of Housing Assistance and ONA).
Table 1. Types of Housing Assistance and Other Needs Assistance
Housing Assistance:
Housing Assistance:
ONA:
ONA:
Financial
Direct
SBA-Dependenta
Non-SBA-Dependentb
Lodging Expense
Multi-Family Lease and
Personal Property
Funeral Assistance
Reimbursement
Repair
Assistance
Medical and Dental
Rental Assistance
Transportable Temporary
Transportation Assistance
Assistance
Home Repair Assistance
Housing Units
Group Flood Insurance
Childcare Assistance
Home Replacement
Direct Lease
Policy
Assistance for
Assistance
Permanent Housing
Miscel aneous Items
Construction
Moving and Storage
Assistance
Critical Needs Assistance
Clean and Sanitize
Assistance
Sources: CRS’s interpretation of “Figure 5: Housing Assistance” and “Figure 28: Other Needs Assistance, Non-
SBA-Dependent and SBA-Dependent” of the FEMA, Individual Assistance Program and Policy Guide (IAPPG), v. 1.1,
FP 104-009-03, May 2021, pp. 44 and 146, https://www.fema.gov/sites/default/files/documents/fema_iappg-1.1.pdf;
and Memorandum from Keith Turi, FEMA Assistant Administrator, Recovery Directorate to FEMA Regional
Administrators, “RE: Amendment to FP 104-009-03, Individual Assistance Program and Policy Guide, Version
1.1,” September 2, 2021, pp. 11-12, https://www.fema.gov/sites/default/files/documents/fema_iappg-policy-
amendments-memo.pdf.
Notes: The different types of Housing Assistance may constitute either financial or direct assistance; however,
al types of Other Needs Assistance (ONA) are forms of financial assistance. The term “SBA” refers to the Smal
Business Administration.

27 T he Immediate Disaster Case Management (IDCM) program is discussed in FEMA’s IAPPG from pages 186-187,
and the Disaster Case Management (DCM) program is discussed from pages 188 -202.
28 FEMA, “ How a Disaster Gets Declared.” Note that IHP is the only form of IA that may be authorized under an
emergency declaration. For additional information on the IHP, see CRS In Focus IF12049, FEMA’s Individuals and
Households Program (IHP), by Elizabeth M. Webster and CRS Report R47015, FEMA’s Individuals and Households
Program (IHP)—Im plementation and Considerations for Congress, by Elizabeth M. Webster.
29 44 C.F.R. §§206.110 et seq.; 42 U.S.C. §5174; FEMA, IAPPG, p. 6.
30 42 U.S.C. §5174; 44 C.F.R. §206.110(a); see also FEMA, IAPPG, p. 6.
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a. SBA-Dependent ONA is only available to individuals or households that do not qualify for an SBA disaster
loan or whose SBA disaster loan amount is insufficient. Eligibility for SBA-Dependent ONA is determined by
FEMA in col aboration with SBA (see 42 U.S.C. §5174(e); and 44 C.F.R. §206.119).
b. Non-SBA-Dependent ONA may be awarded regardless of the individual or household’s SBA disaster loan
status (see 42 U.S.C. §5174(e); and 44 C.F.R. §206.119).
Housing Assistance
Housing Assistance may include financial or direct assistance, including the following:
 Lodging Expense Reimbursement (LER) for hotels, motels, or other short-term
lodging;
 Rental Assistance for alternate housing accommodations while the applicant is
displaced from their primary residence;
 Home Repair Assistance for an owner-occupied primary residence;
 Replacement Assistance for an owner-occupied primary residence when the
residence is destroyed;
 Multi-Family Lease and Repair (MLR) to place disaster survivors in FEMA-
leased multi-family temporary housing;
 Transportable Temporary Housing Units (TTHUs)31 to place disaster
survivors in FEMA-purchased or -leased temporary housing units;
 Direct Lease to place disaster survivors in FEMA-leased residential properties;
and
 Permanent Housing Construction (PHC) to provide home repair and
construction services in insular areas outside the continental United States and
other locations where no alternative housing resources are available and where
types of FEMA housing assistance that are normal y provided (such as rental
assistance) are unavailable, infeasible, or not cost-effective.32
In addition to IHP temporary housing assistance, FEMA may provide short-term, emergency
sheltering accommodations under Section 403—Essential Assistance—of the Stafford Act (e.g.,
the Transitional Sheltering Assistance [TSA] program, which provides short-term hotel/motel
accommodations to disaster survivors).33
Other Needs Assistance (ONA)
ONA provides financial assistance for other disaster-related necessary expenses and serious
needs. There are two categories of ONA: (1) SBA-dependent, and (2) non-SBA-dependent.
SBA-Dependent ONA
FEMA and the Smal Business Administration (SBA) collaborate to determine an applicant’s
eligibility for some forms of ONA.34 This is because IHP assistance for Personal Property

31 Examples of T ransportable T emporary Housing Units (T T HUs) include Recreational Vehicles (RVs) and
Manufactured Housing Units (MHUs).
32 FEMA, IAPPG, p. 127.
33 42 U.S.C. §5170b. Note that Stafford Act Section 403 assistance is not the focus of this report.
34 SBA, “Computer Matching Agreement ,” 84 Federal Register 2651; and FEMA, IAPPG, p. 145. Per the Computer
Matching Agreement, “T he Computer Matching program seeks to ensure t hat applicants for SBA Disaster Loans and
DHS/FEMA Individuals and Households Program (IHP) ... are eligible to receive benefits and do not receive a
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Assistance, Transportation Assistance, and Group Flood Insurance Policy assistance—the three
forms of SBA-Dependent ONA—are forms of assistance that may also be addressed by an SBA
disaster loan. To avoid the statutory prohibition on duplicative assistance,35 FEMA refers IHP
applicants who meet the SBA’s minimum income test to first apply for a low-interest SBA
disaster loan before they are eligible to receive SBA-Dependent ONA through the IHP.36 If the
applicant does not qualify for an SBA disaster loan or their SBA disaster loan amount is
insufficient to meet their disaster-caused expenses or serious needs, then they can be referred
back to FEMA for consideration for IHP assistance—specifical y for SBA-Dependent ONA.37
 Personal Property Assistance provides funding to eligible individuals to repair
or replace eligible personal property items damaged or destroyed as a result of a
declared emergency or major disaster.38 Assistance may be provided for ONA-
eligible personal property items set by the affected state/territory/tribe in its
“ONA Administrative Option Selection Form.”39
 Transportation Assistance provides funding to eligible individuals to repair or
replace a vehicle damaged by a declared emergency or major disaster, up to the
maximum award amount set by the affected state/territory/tribe in its “ONA
Administrative Option Selection Form.”40
 Group Flood Insurance Policy enables FEMA or the state, territory, or Indian
tribal government to directly purchase a policy on an applicant’s behalf if the
applicant is required to purchase and maintain flood insurance, but could not
otherwise purchase a policy.41 The premium for a three-year certificate of
coverage costs $2,400,42 and it covers real and personal property equaling the
maximum amount of financial assistance available for both Housing Assistance
and ONA.43 Upon the group policy’s expiration, the applicant must purchase and

duplication of benefits for the same disaster. Additionally, [it] seeks to establish or verify initial eligibility for
DHS/FEMA and SBA disaster assistance.... ”
35 42 U.S.C. §5155.
36 T he other forms of ONA may be awarded regardless of the individual’s or household’s SBA disaster loan status and
are referred to as Non-SBA-Dependent ONA.
37 For additional detailed information on the process for authorizing a disaster survivor’s request for SBA-Dependent
ONA, see the “SBA-Dependent ONA” section of CRS Report R47015, FEMA’s Individuals and Households Program
(IHP)—Im plem entation and Considerations for Congress, by Elizabeth M. Webster.
38 FEMA, IAPPG, pp. 166-169. Eligible Personal Property items include standard household appliances (and selected
accessibility items); essential clothing; standard furnishings; and essential, specialized tools and equipment required by
an employer (essential equipment for self-employment is ineligible) or for education.
39 FEMA, IAPPG, p. 149. T he affected state, territory, or tribe may identify ONA-eligible personal property and
miscellaneous items, and can set a maximum number of items each eligible individual or household may receive.
40 FEMA, IAPPG, pp. 149, and 170-172. Eligible vehicles include cars, vans, sport utility vehicles (SUVs), and trucks,
and may include motorcycles, boats, golf carts, etc. if specified by the affected state, territory, or Indian tribal
government on their “ONA Administrative Option Selection Form.”
41 FEMA, IAPPG, pp. 172-175.
42 Per 44 C.F.R. §61.17(b), the Group Flood Insurance Policy (GFIP) premium is a “flat fee of $600 per insured” and
44 C.F.R. §61.17(d) states that the term is for 36 months—or 3 years; however, the regulation notes that the premium
may be adjusted “ to reflect NFIP [National Flood Insurance Program] loss experience and any adjustment of benefits
under the IHP program” (FEMA, IAPPG, p. 172).
43 FEMA, IAPPG, p. 172.
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maintain their own flood insurance; failure to do so may affect future IHP
eligibility.44
Non-SBA-Dependent ONA
The forms of Non-SBA-Dependent ONA may be awarded regardless of the individual or
household’s SBA disaster loan status.45
 Funeral Assistance provides funding to assist eligible individuals with eligible
funeral expenses related to a death that is directly or indirectly attributable to a
declared emergency or major disaster, up to the maximum award amount set by
the affected state/territory/tribe in its “ONA Administrative Option Selection
Form.”46
 Medical and Dental Assistance provides funding to assist eligible individuals
with eligible medical and dental expenses incurred as a direct result of a declared
emergency or major disaster.47
 Child Care Assistance provides funding to assist eligible individuals with a
disaster-caused increased financial burden for childcare for children aged 13 and
under and/or children up to age 21 who have a disability and need assistance with
activities of daily living. Assistance is provided for up to eight cumulative weeks
of childcare and eligible expenses or the maximum award amount set by the
affected state/territory/tribe in its “ONA Administrative Option Selection Form,”
whichever is less.48
 Moving and Storage Assistance provides funding to eligible individuals to
relocate and store essential personal property while repairs are made to the
applicant’s primary residence, and then return the property to the repaired
primary residence.49
 Miscellaneous Expenses provides funding to reimburse eligible individuals for
eligible items purchased or rented after a disaster to assist with their recovery.50
Assistance may be provided for ONA-eligible miscel aneous items set by the
affected state/territory/tribe in its “ONA Administrative Option Selection
Form.”51

44 FEMA, IAPPG, p. 174.
45 FEMA, IAPPG, p. 149.
46 FEMA, IAPPG, pp. 149-152. Examples of eligible funeral expenses include interment or reinterment, funeral and
officiant services, and the cost of producing and certifying death certificates.
47 FEMA, IAPPG, pp. 153-155. Examples of eligible medical and dental expenses include costs associated with a
disaster-caused illness or injury, replacing prescribed medication or equipment, and insurance deductibles and
copayments, as well as loss or injury of a service animal.
48 FEMA, IAPPG, pp. 155-160.
49 FEMA, IAPPG, pp. 162-164. Items may be relocated to a temporary housing unit if they will be returned to the
repaired primary residence. Appliances and furniture, but not recreational items, are eligible to move and store.
50 FEMA, IAPPG, pp. 160-162. Miscellaneous items may assist disaster survivors with gaining access to their property
or assisting with cleaning efforts. Examples of eligible miscellaneous items may include carbon monoxide and smoke
detectors, and a dehumidifier or humidifier. Chainsaws and generators may be permitted under limited circumstances if
certain conditions are met.
51 FEMA, IAPPG, p. 149. T he affected state, territory, or tribe may identify ONA-eligible personal property and
miscellaneous items, and can set a maximum number of items each eligible individual or household may receive.
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 Critical Needs Assistance (sometimes referred to as “Immediate Needs
Assistance”) is provided to eligible individuals in the form of a one-time payment
that is limited to $500 per eligible household when applicants are displaced from
their pre-disaster primary residence or need to shelter elsewhere as a result of a
declared emergency or major disaster.52
 Clean and Sanitize Assistance (previously “Clean and Removal Assistance”) is
provided to eligible individuals in the form of a one-time payment limited to
$300 to “ensure minimal damage to the home is addressed in order to prevent
additional losses and potential health and safety concerns.”53
Maximum Amount of IHP Financial Assistance
The amount of IHP financial assistance an individual or household may receive is limited.
Housing assistance may not exceed $41,000 (FY2023; adjusted annual y),54 and separate from
that, financial assistance for ONA also may not exceed $41,000 (FY2023; adjusted annual y).55 In
addition, financial assistance to rent alternate housing accommodations is not subject to the cap,
and accessibility-related repair or replacement costs associated with real and personal property
are not subject to the cap.56 Households may need both IHP assistance and an SBA disaster loan
to repair or rebuild their home, or meet other disaster-caused needs.

52 FEMA, IAPPG, pp. 164-165. FEMA’s IAPPG provides a nonexclusive list of life-saving and life-sustaining items
including “water, food, first aid, prescriptions, infant formula, diapers, CMS [consumable medical supplies], DME
[durable medical equipment], personal hygiene items, and fuel for transportation.”
53 Memorandum from Keith T uri, FEMA Assistant Administrator, Recovery Directorate to FEMA Regional
Administrators, “RE: Amendment to FP 104-009-03, Individual Assistance Program and Policy Guide, Version 1.1,”
September 2, 2021, pp. 11-12, https://www.fema.gov/sites/default/files/documents/fema_iappg-policy-amendments-
memo.pdf (hereinafter Memorandum from Keith T uri RE: Amendment to the IAPPG).
54 DHS/FEMA, “Notice of Maximum Amount of Assistance Under the Individuals and Households Program,” 87
Federal Register 64512, October 25, 2022, https://www.govinfo.gov/content/pkg/FR-2022-10-25/pdf/2022-23162.pdf.
T he maximum amount of assistance is adjusted annually to reflect changes in the Consumer Price Index for All Urban
Consumers published by the Department of Labor (§408(h)(3) of the Stafford Act, P.L. 93-288, as amended; 42 U.S.C.
§5174).
55 §1212 of DRRA, P.L. 115-254. The Disaster Recovery Reform Act of 2018 (DRRA, Division D of P.L. 115-254)
amended the provision of housing assistance and ONA under Stafford Act Section 408 —Federal Assistance to
Individuals and Households by creating separate caps of equal amounts for housing assistance and ONA. Prior to
DRRA’s enactment, the Stafford Act imposed a total limit on the maximum amount of all IHP financial assistance an
individual or household could receive for a single disaster (i.e., housing assistance and ONA combined to count
towards the cap).
56 §1212 of DRRA, P.L. 115-254. Prior to DRRA’s enactment, financial assistance to rent alternate accommodations
was also subject to the maximum amount of financial assistance ( §1212 of DRRA, P.L. 115-254). Note that t he
exclusion from the cap applies to both Lodging Expense Reimbursement (LER) and Rental Assistance (including
Initial Rental Assistance and Continued Rental Assistance). Memoran dum from Christopher B. Smith, Individual
Assistance Division Director, to Regions I-X Regional Administrators, “ Policy Changes to the Individuals and
Households Program resulting from the Disaster Recovery Reform Act of 2018, Section 1212,” March 25, 2 019, last
accessed July 8, 2019.
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Stafford Act and SBA Disaster Declarations, and
Designations
Two declaration authorities put FEMA IA and the SBA Disaster Loan Program into effect: (1) the
Stafford Act and (2) the Smal Business Act.
Stafford Act Declarations
The Stafford Act authorizes the President to issue major disaster declarations57 that provide local,
state, territorial, and Indian tribal governments with a range of federal assistance in response to
natural and human-caused incidents.58 Each presidential major disaster declaration includes a
“designation” listing the counties eligible for assistance, as wel as the types of assistance FEMA
is to provide under the declaration.59 Potential types of assistance include (1) Public Assistance
(PA) for emergency protective measures, debris removal, and repair or replacement of damaged
public infrastructure;60 (2) Hazard Mitigation Grant Program (HMGP) grants to fund projects to
lessen the effects of future disaster incidents;61 and (3) Individual Assistance (IA) to provide
assistance to disaster survivors, to include housing and other needs assistance through the IHP.
Not al major disaster declarations provide IA. Often, major declarations only provide PA and
HMGP (these are sometimes referred to as “PA-only” major disaster declarations).
Stafford Act major disaster declarations also trigger the SBA Disaster Loan Program.62 The
assistance designation, however, determines what loan types become available. In particular, the
IA designation is important because it determines whether SBA disaster loans wil be made
available to individuals and households. For example, if the President declares a major disaster
and designates IA for a county, then al SBA disaster loan types become available to that county.63
If the President issues a PA-only major declaration, SBA disaster loans are general y only
available to private nonprofit organizations. In many cases, a major disaster is declared for an

57 T he President may also issue emergency declarations, which provide federal assistance; however, only Public
Assistance Categories A (debris removal) and B (emergency protective measures), and the Individual Assistance
Individuals and Households Program, may be available following an emergency declaration (FEMA, “ How a Disaster
Gets Declared”). Additionally, SBA disaster loans for individuals and households are only available following a
Presidential declaration of a major disaster when IA is authorized.
58 For more information on major disaster declarations, see CRS Report R43784, FEMA’s Disaster Declaration
Process: A Prim er, by Bruce R. Lindsay; and CRS Report R42702, Stafford Act Declarations 1953-2016: Trends,
Analyses, and Im plications for Congress, by Bruce R. Lindsay.
59 When an emergency or major disaster is declared, areas of the impacted state are “designated” as hav ing been
deemed eligible for federal assistance (44 C.F.R. §206.2(a)(6)). A designated area is “ [a]ny emergency or major
disaster-affected portion of a State which has been determined eligible for Federal assistance.” Designated areas may
include counties, parishes, or tribal lands, as well as municip alities, villages, or districts (FEMA, IHPUG, p. 3; FEMA,
IAPPG, p. 5).
60 For more information on the Public Assistance (PA) program, see CRS Report R46749, FEMA’s Public Assistance
Program : A Prim er and Considerations for Congress, by Erica A. Lee.
61 For more information on the Hazard Mitigation Grant Program (HMGP), see CRS Report R46989, FEMA Hazard
Mitigation: A First Step Toward Clim ate Adaptation , by Diane P. Horn.
62 13 C.F.R. §123.3(a)(1).
63 Contiguous counties are eligible for Economic Injury Disaster Loans (EIDLs). FEMA assistance is not provided to
contiguous counties—only those counties designated in the declaration. T he loan types are home disaster loans
(Personal Property Loans and Real Property Loans), which are discussed in this report, and business disaster loans
(Business Physical Disaster Loans and Economic Injury Disaster Loans).
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incident that designates IA for some counties, and designates PA for others. Only counties
authorized to receive IA pursuant to a major disaster declaration are eligible for SBA home
disaster loans.
SBA Disaster Declarations
SBA disaster loans can also be triggered by the SBA Administrator, who is authorized under the
Smal Business Act to issue an “Agency” or “SBA declaration” that makes SBA disaster loans
available for homeowners, renters, businesses, and nonprofit organizations.64 The SBA
declaration by itself does not, however, trigger FEMA IA.65
Applications for Assistance
The following sections describe the application process for FEMA and SBA disaster loan
assistance. They include a discussion concerning eligibility criteria for the two programs in
addition to a description of how applicants are screened to determine whether the applicant
should be provided a grant, a loan, or both. Although integrated to a large extent, ultimately each
agency is responsible for determining eligibility based on the applicant’s losses and the forms of
assistance they have received.
Applying for FEMA Individual Assistance
Applicants in a declared disaster area may register for FEMA IA—IHP assistance and SBA
disaster loans after a major disaster declaration has been issued and IA has been designated.
Individuals and households can register for assistance online, by telephone, or in-person at a
Disaster Recovery Center (DRC).66 Individuals and households general y have 60 days from the
date of a declaration authorizing IA to apply for FEMA IHP assistance.67 The registration process
requires the following information:
 certification that the applicant is a U.S. citizen, noncitizen national, a qualified
alien, or the parent or guardian of a minor who is a U.S. citizen, noncitizen
national, or qualified alien;68
 the primary applicant’s social security number (or the social security number of a
minor child in the household who is a U.S. citizen, noncitizen national, or
qualified alien if the parent or legal guardian is not a legal citizen);
 current and pre-disaster address;

64 T he criteria used to determine whether to issue a declaration include a minimum amount of uninsured p hysical
damage to buildings, machinery, inventory, homes, and other property. Generally, this minimum is at least 25 homes or
businesses (or some combination of the two) that have sustained uninsured losses of 40% or more in any county or
other smaller political subdivision of a state or U.S. possession. See 13 C.F.R. §123.3 (a)(3)(i) and 13 C.F.R.
§123.3(a)(3)(ii).
65 Under an SBA declaration, applicants apply directly to SBA for disaster loans. T he CMA with FEMA is not used in
these situations.
66 FEMA, IAPPG, p. 69. See Appendix C for more information. See also CRS Report R47297, Disaster Survivor
FAQ: FEMA Individuals and Households Program , by Elizabeth M. Webster, for additional information on frequently
asked questions that arise as disaster survivors navigate the IHP application process and receive IHP assistance.
67 FEMA, IAPPG, p. 69.
68 FEMA, IAPPG, p. 70.
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 names of pre-disaster household occupants;
 contact information;
 insurance information;
 financial information (i.e., pre-disaster household annual gross income);
 losses caused by the disaster; and
 banking information for direct deposit of financial assistance.69
Other forms of IA include other application requirements and processes on the part of the
requesting affected local, state, territorial, or Indian tribal governments, and eligible disaster
survivors may access the services provided at no cost to the disaster survivor.
Applying for SBA Disaster Loans
Applicants can apply for SBA disaster loans online, in-person at a DRC, or by mail.70 Applicants
must fil out SBA Form 5C and IRS Form 4506-C.71 The forms require information about the
applicant, including their social security number, income, insurance, assets, debt amounts, and tax
information. The applicant may also be required to indicate whether their employment has
changed in the last two years, as wel as provide deed and proof of residency information. If the
applicant is claiming automobile damage they may be required to provide proof of ownership
(e.g., a copy of the registration, title, bil of sale).
Eligibility for SBA Disaster Loans
In the case of SBA disaster loans, the SBA’s Office of Disaster Assistance (ODA) determines
eligibility based on the applicant’s disaster-related losses, as verified by the SBA.72 According to
the SBA, three main criteria are used for making credit decisions: (1) eligibility, which is based
on the applicant’s disaster-related losses; (2) satisfactory credit; and (3) repayment ability,
including minimum income levels. The SBA would not decline an application for not having
collateral to secure a loan but, to the extent it is available, a borrower may be required to pledge
collateral for loans over certain amounts (e.g., $25,000 for physical damage loans).73
Eligibility for FEMA IHP Assistance
IHP applicants must meet general eligibility requirements, as follows:
1. “[t]he applicant must be a U.S. citizen, noncitizen national, or qualified alien” (or
the parent or guardian of a minor child who is a U.S. citizen, noncitizen national,
or qualified alien);
2. “FEMA must be able to verify the applicant’s identity”;

69 FEMA, IAPPG, pp. 71-72.
70 See Appendix C of this report for more information. See also SBA, “Disaster Loan Assistance,”
https://disasterloanassistance.sba.gov/ela/s/; and SBA, “ T hree Steps to SBA Disaster Assistance Loans,”
https://disasterloanassistance.sba.gov/ela/file-asset/T hree_Step_Process_SBA_Disaster_Loa.
71 For the paper forms, see SBA, “Disaster Loan Application Paper Forms,” https://disasterloanassistance.sba.gov/ela/s/
article/Paper-Forms.
72 Generally, based on the amount of disaster damages, minus any assistance received from insurance, FEMA grants, or
other sources of recovery.
73 SBA, Frequently Asked Questions, August 17, 2021, https://disasterloanassistance.sba.gov/ela/s/article/FAQ.
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3. “[t]he applicant’s insurance, or other forms of disaster assistance received, cannot
meet their disaster-caused needs”; and
4. “[t]he applicant’s necessary expenses and serious needs are directly caused by a
declared disaster.”74
Each type of IHP assistance requires that additional eligibility conditions be met, and may require
additional documentation.75 For example, Home Repair and Home Replacement assistance are
only available to homeowners, and some forms of assistance require proof of occupancy and/or
ownership.76
A FEMA inspection is used to verify losses related to real and personal property, and is typical y
conducted on-site by a FEMA inspector, but may also be completed via a geospatial inspection or
based on documentation of losses (e.g., medical bil s or receipts for automobile repairs).77
Eligibility for SBA-Dependent ONA
As stated above, FEMA and the SBA collaborate to determine an applicant’s eligibility for some
forms of Other Needs Assistance (see the “Other Needs Assistance (ONA)” section).78 Figure 1
depicts the general process for determining eligibility for SBA-Dependent ONA.79
There are two pathways for individuals and households to be considered for SBA-Dependent
ONA:
 Path 1: FEMA refers applicants to the SBA Disaster Loan Program if their
income meets the SBA’s minimum income test (see the “Yes” path)—in this
case, the referred IHP applicant must submit an application for an SBA disaster
loan. If the SBA denies the applicant’s SBA disaster loan request or the loan
amount is insufficient to meet their recovery needs (i.e., a partial SBA disaster
loan), the applicant is referred back to FEMA to be considered for SBA-
Dependent ONA. According to the FEMA officials, FEMA contacts the disaster
survivor if the SBA determines they cannot afford a loan.80
 The SBA developed the minimum income levels or “minimum cost of living
estimates” by applying a formula to the U.S. Department of Health and
Human Services Federal Poverty Guidelines.81 As shown in Table 2, the SBA
establishes minimum income levels by multiplying the poverty level for a

74 FEMA, IAPPG, p. 46.
75 See the IAPPG guidance on the type of IHP assistance being requested for additional requirements.
76 FEMA, IAPPG, pp. 46, 51-55; Memorandum from Keith T uri RE: Amendment to the IAPPG, pp. 2 -9.
77 FEMA, IAPPG, p. 72.
78 SBA, “Computer Matching Agreement,” 84 Federal Register 2651; FEMA, IAPPG, p. 133.
79 For more information on the process of determining whether an applicant may qualify for a SBA disaster loan and
how FEMA ONA assistance and SBA disaster loans intersect, see CRS Report R45238, FEMA and SBA Disaster
Assistance for Individuals and Households: Ap plication Processes, Determ inations, and Appeals, by Bruce R. Lindsay
and Elizabeth M. Webster.
80 Government Accountability Office (GAO), Disaster Assistance: Additional Actions Needed to Strengthen FEMA’s
Individuals and Households Program , GAO-20-503, September 2020, p. 37, https://www.gao.gov/assets/710/
709775.pdf (see footnote 49) (hereinafter GAO, Disaster Assistance IHP).
81 T he poverty guidelines are updated on a yearly basis. T he U.S. Department of Health and Human Services Federal
Poverty Guidelines are available at https://aspe.hhs.gov/poverty-guidelines. T hey are also posted in the Federal
Register.
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family of one by a factor of 1.5, and multiplying the poverty level for
families of greater than one by a factor of 1.25.82 The income test formula is
not specifical y authorized in statute and is not published in SBA regulations.
Rather, the formula was first introduced as agency policy in 1985 by SBA
Memorandum 85-20 as a means to help determine the applicant’s ability to
repay the loan and is stil in use today (see Appendix B).
 SBA disaster loan applicants with income below the minimum income level
are classified as Failed Income Test (FIT). FIT applicants are notified that
their SBA disaster loan application has been denied and advised that they
wil be notified if there are any changes to the decision.83
 Alternatively, Path 2: FEMA considers the applicant for SBA-Dependent ONA if
the applicant’s income does not meet the SBA’s minimum income test (see the
“No” path).84
Figure 1. FEMA and SBA Screening Process

Source: Developed by CRS based on “Figure 27: SBA Disaster Loan Application Process” of the FEMA,
Individual Assistance Program and Policy Guide (IAPPG), v. 1.1, FP 104-009-03, May 2021, p. 145,
https://www.fema.gov/sites/default/files/documents/fema_iappg-1.1.pdf.
Note: SBA-Dependent ONA provides financial assistance for other disaster-related expenses and needs,
including for Personal Property Assistance, Transportation Assistance, and Group Flood Insurance Policies.
Table 2. SBA Income Test Table
(Poverty Threshold Formula)
Number of Persons
HHS Poverty Guidelines for
SBA Income
in Family/Household
2022
Threshold
1
$13,590
$20,385
2
$18,310
$22,888

82 Minimum income includes wages, alimony, child support payments, interest and dividend income from savings,
retirement, pension, social security, or disability payments.
83 SBA, Office of Disaster Assistance, Disaster Assistance Program SOP 50 30 9, effective May 31, 2018,
https://www.sba.gov/document/sop-50-30-9-disaster-assistance-
programhttps://www.sba.gov/sites/default/files/SOP 50 30 7.pdf.
84 SBA, “Computer Matching Agreement,” 84 Federal Register 2651. “[I]f SBA approves the applicant’s loan
application and the applicant does not accept the loan, DHS/FEMA will not provide any SBA -dependent ONA to that
applicant.”
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3
$23,030
$28,788
4
$27,750
$34,688
5
$32,470
$40,588
6
$37,190
$46,488
7
$41,910
$52,388
8
$46,630
$58,288
Notes: Amounts have been rounded (to the nearest dol ar).
Source: Based on CRS interpretation of U.S. Department of Health and Human Services (HHS), U.S. Federal
Poverty Guidelines Used to Determine Financial Eligibility for Certain Federal Programs, effective January 12, 2022,
https://aspe.hhs.gov/poverty-guidelines (the HHS data notes that “For families/households with more than 8
persons, add $4,720 for each additional person”); and the formula applied in SBA Memorandum 85-20: Bernard
Kulik, Deputy Associate Administrator for Disaster Assistance, U.S. Smal Business Administration, Income Test
Tables:, SBA Memorandum 85-20, June 13, 1985.
Appealing Eligibility and Assistance
Determinations
FEMA Appeals
FEMA may deny IHP applicants’ requests for IHP assistance for a variety of reasons, ranging
from determinations related to the applicant’s eligibility for IHP assistance general y or the
specific type of IHP assistance being requested, to a finding by FEMA that the applicant failed to
purchase and maintain flood insurance as a requirement of receiving previous federal disaster
assistance.85 If this occurs, applicants for IHP assistance may appeal FEMA’s determinations. To
appeal any IHP assistance-related FEMA determination, applicants must submit a written appeal
explaining the reason for the appeal with documentation supporting the appeal request.86 Once
FEMA receives an appeal, a caseworker who was not involved in the case shal review the appeal
and file to determine if there is sufficient information to change FEMA’s determination. If there
is not sufficient information, FEMA wil either (1) contact the applicant to request additional
information with a deadline of 30 days; (2) contact a third party (e.g., contractor, insurance
company) to verify the supporting documentation; and/or (3) schedule an appeal inspection.87
FEMA’s shal provide appeal determinations to the applicant in writing within 90 days of
receiving the written appeal letter, and FEMA’s appeal decision is final (i.e., it cannot be
appealed again).88
SBA Appeals
SBA disaster loan applicants have six months to request a reconsideration of an SBA decline and
have 30 days to appeal a subsequent SBA decline decision.89

85 44 C.F.R. §206.113.
86 44 C.F.R. §206.115(b); FEMA, IAPPG, pp. 66-67. Appeals must also be signed by the applicant (or person they have
authorized to act on his/her behalf).
87 44 C.F.R. §206.115(f); FEMA, IAPPG, p. 68.
88 44 C.F.R. §206.115(f); FEMA, IAPPG, p. 68.
89 13 C.F.R. §123.13(e).
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Policy Observations and Considerations
Disaster Survivor Confusion Due to Separate Application
Processes for FEMA IHP and SBA Disaster Loans
As previously noted, the SBA disaster loan application is separate from the FEMA IHP
application for assistance. Consequently, IHP applicants who are referred to the SBA must also
submit an application for an SBA disaster loan to be considered for such assistance—and then
potential y for SBA-Dependent ONA. Failure to submit an SBA disaster loan application is one
of several reasons some disaster survivors are not considered for selected forms of recovery
assistance. In a 2020 Government Accountability Office (GAO) report on the IHP, GAO found
the interconnected SBA Disaster Loan and SBA-Dependent ONA application process
burdensome, stating that it “may have prevented many survivors from being considered for
certain types of assistance.. . ” 90
This issue of the interconnected SBA disaster loan and IHP process and the current requirement
that disaster survivors must submit multiple applications to receive different types of federal
disaster assistance has been a subject of congressional concern. Considerations to address
potential confusion created by the current process include improving communication to disaster
survivors to ensure the separate application requirement is clear, and, alternatively, creating a
unified application for disaster assistance.
With regard to improving disaster survivor communications to ensure IHP applicants understand
that they may be required to submit separate applications to FEMA and the SBA, GAO stated that
[b]y fully communicating the requirement [to first apply for an SBA disaster loan before
being considered for SBA-Dependent ONA] and working with SBA to identify options to
simplify and streamline this step of the IHP process, FEMA could help ensure that
survivors receive all assistance for which they are eligible.91
As of July 2022, FEMA reported that the agency is revising its letters to IHP applicants and is
developing a notice of proposed rulemaking related to SBA-Dependent ONA, which, according
to GAO, FEMA plans to publish by January 2023.92 Congress could consider requiring FEMA to
report on its progress revising its disaster survivor notice letter, and with regard to the proposed
rulemaking.
With regard to simplifying the application process by creating a unified application, during the
117th Congress, Senators Gary Peters and James Lankford introduced bipartisan legislation to
simplify the application process itself by creating a consolidated application for federal disaster
assistance.93

90 GAO, Disaster Assistance: IHP, p. GAO Highlights.
91 GAO, Disaster Assistance: IHP, p. GAO Highlights.
92 GAO, Disaster Assistance: IHP, pp. 76-77 (see Recommendations 1 and 2). See also the status of Recommendations
1 and 2 in the “Recommendations for Executive Action” table on the webpage for the GAO Disaster Assistance: IHP
report, available at https://www.gao.gov/products/gao-20-503, last accessed November 3, 2022.
93 Disaster Assistance Simplification Act (S. 4599), introduced July 21, 2022; see also U.S. Senate Committee on
Homeland Security and Governmental Affairs, “Peters and Lankford Bipartisan Bill to Simplify Application Process
for Federal Disaster Assistance Advances in Senate: Legislation Would Create Universal Application for Disaster
Survivors,” press release, August 5, 2022, https://www.hsgac.senate.gov/media/majority-media/peters-and-lankford-
bipartisan-bill-to-simplify-application-process-for-federal-disaster-assistance-advances-in-senate.
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Application of the SBA Income Test
According to SBA Memorandum 85-20 (see Appendix B), the income test table is used as a
guide “for summary declines.” It is unclear, however, if income levels are a hard limit to screen
out applicants, or if there is discretion in the process.94
Congress may consider whether the SBA should continue to use established thresholds and
formulas based on SBA Memorandum 85-20 to determine eligibility, or provide SBA with some
measure of discretion in the process. Some might argue that uniformity would ensure equitable
determinations. Others might argue that a one size-fits-al approach does not address special or
mitigating circumstances. In general, SBA disaster loan eligibility is assigned to the person (or
entity in the case of businesses) that legal y owns or is responsible for the repair or replacement
of the disaster-damaged property and is based on that person’s ability to repay the loan. It could
be argued, however, that the ability to pay a loan is not solely determined by income and that a
range of factors and circumstances should also be considered. For example, a retired person may
not meet a certain minimum income level, but may own assets that could be liquidated for
repayment purposes. Another example is the parent of a university student who is wil ing to
cosign for their child’s SBA disaster loan. In both of these examples, strict adherence to an
income test might prevent people from obtaining loans despite their being able to repay them
through nontraditional methods. Congress may also consider whether the income test is an
effective screening tool for identifying applicants that meet the income test but cannot repay their
disaster loan; for example, a person who earns more than the minimum income level, but has debt
that impedes their ability to repay the loan.
If Congress is concerned about how income factors into assistance determinations, it could
consider requiring the SBA and FEMA to publish specific determination criteria in their
respective regulations and policy guidance documents. Congress may also consider putting the
income determination formula into statute.
Use of the Computer Matching Agreement (CMA) to Prevent a
Duplication of Benefits (DOB)
Following a major disaster, homeowners and businesses may have access to a number of
resources to assist in the response, recovery, and rebuilding process. The range of resources
include insurance payouts, state and local government assistance, charitable donations from
private institutions and individuals, as wel as certain forms of federal assistance. In addition to
FEMA and SBA disaster assistance, individuals and households may be eligible for assistance
provided through the Department of Housing and Urban Development’s (HUD’s) Community
Development Block Grant Disaster Recovery (CDBG-DR) program, when authorized.95
Compensation from multiple sources that exceeds the total loss amount is general y considered a

94 Minimum income includes wages, alimony, child support payments, interest and dividend income from savings,
retirement, pension, social security, or disability payments.
95 For more information on the Community Development Block Program , see CRS Report R46475, The Community
Developm ent Block Grant’s Disaster Recovery (CDBG-DR) Com ponent: Background and Issues, by Joseph V.
Jaroscak.
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duplication of benefits.96 When duplication occurs, the recipient is liable to the United States to
pay back the duplicated benefit.97
Section 312 of the Stafford Act requires federal agencies to ensure that individuals (and
businesses) do not receive disaster assistance for losses for which they have already been
compensated or may expect to be compensated.98 The uniformity requirement set forth in Section
312 is located in FEMA regulation 44 C.F.R. §206.191, which establishes a delivery sequence of
disaster assistance provided by federal agencies and organizations (see Figure 2).
Figure 2. Delivery Sequence
44 C.F.R. §206.191(d)(2)

Source: Based on CRS interpretation of 44 C.F.R. §206.191.
Note: Housing assistance under Section 408—Federal Assistance to Individuals and Households includes
financial and direct housing assistance, as wel as financial assistance for other needs (Other Needs Assistance
(ONA)). SBA-dependent ONA may be available for applicants who do not qualify for an SBA disaster loan or
whose loan amount is insufficient; this type of ONA includes personal property, transportation, and Group Flood
Insurance Policy assistance. Cora Brown of Kansas City, MO, died in 1977, leaving a portion of her estate to the
United States to be used as a special fund to relieve human suffering caused by natural disasters.
An organization’s position within the sequence determines the order in which it should provide
assistance and what other resources must be considered before that assistance is provided.
According to FEMA regulations, the agency or organization that is later in the delivery sequence
should not provide assistance that duplicates assistance provided by an agency or organization
earlier in the sequence (e.g., SBA disaster loans should be provided before SBA-Dependent

96 42 U.S.C. §5155; 44 C.F.R. §206.191.
97 42 U.S.C. §5155; 44 C.F.R. §206.191.
98 42 U.S.C. §5155. T here are numerous statutes and regulations that prohibit duplication of benefits with respect to
disaster assistance. T hese are included in Appe ndix A.
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ONA). When the delivery sequence has been disrupted, the disrupting agency is responsible for
rectifying the duplication.
As mentioned previously in this report, SBA and FEMA have a computer matching agreement to
share real-time data on assistance provided to applicants.99 Both the SBA and FEMA also share
relevant data—including personal y identifiable information (PII) related to applicants—with
local, state, territorial, and Indian tribal governments, and voluntary agencies. This is done to
prevent a duplication of benefits, as wel as to potential y enable applicants to receive additional
disaster assistance.100
The SBA and FEMA entered into the CMA pursuant to Section (o) of the Privacy Act of 1974 (5
U.S.C. §552a).101 As outlined in the SBA-FEMA Computer Matching Agreement Federal
Register notice, “the financial and administrative responsibilities wil be evenly distributed
between SBA and DHS/FEMA unless otherwise set forth in this agreement.”102 The Federal
Register notice further stated that the CMA is “part of a [g]overnment-wide initiative, Executive
Order 13411—Improving Assistance for Disaster Victims (August 29, 2006) ... to identify and
prevent duplication of benefits received by individuals, businesses, or other entities for the same
disaster.”103
Although the CMA is part of a government-wide initiative to prevent duplication of benefits, it is
solely used by the SBA and FEMA in this disaster assistance context. Some may argue that the
CMA should also be used by other federal agencies that offer disaster assistance (such as HUD,
which administers CDBG-DR). Others, however, might argue using the CMA with agencies other
than the SBA and FEMA is problematic or potential y ineffective. For example, HUD provides
funds to state and local jurisdiction grantees. HUD does not have the individual award data to
match up with SBA disaster loan applicant data to determine instances of duplication.
If Congress is concerned about the use of the CMA, it could require FEMA, SBA, and HUD to
report on how the CMA could be used in conjunction with other disaster assistance programs,
evaluate chal enges, and could consider mandating its use across the federal government to avoid
a duplication of disaster assistance benefits. Additional y, Congress could investigate the
effectiveness of the SBA-FEMA CMA in preventing duplication of benefits since its
implementation.
Similarly, Congress could also review how applicant information is being used by local, state,
territorial, and Indian tribal governments, as wel as voluntary agencies, to determine the
effectiveness of information sharing with regard to reducing duplication.

99 SBA, “Computer Matching Agreement,” 84 Federal Register 2651, February 7, 2019.
100 FEMA, IAPPG.
101 As amended by the Computer Matching and Privacy Protection Act of 1988 (P.L. 100-503), and as amended by the
Computer Matching and Privacy Protection Amendments of 1990 (P.L. 101-508, 5 U.S.C. §552a(p) (1990)).
102 SBA, “Computer Matching Agreement,” 84 Federal Register 2650, February 7, 2019.
103SBA, “Computer Matching Agreement,” 84 Federal Register 2651, February 7, 2019.
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Appendix A. Relevant Duplication of Benefits
Statutory Authorities and Regulations
The following is a listing of selected authorities and regulations pertaining to the duplication of
disaster assistance benefits. This list should be considered representative, not exhaustive.
Stafford Act (42 U.S.C. §5155)
The Stafford Act is the primary statute governing the provision of federal disaster assistance,
particularly FEMA assistance. Section 312 of the Stafford Act requires federal agencies that
provide financial disaster assistance to ensure that individuals, businesses, or other entities
suffering losses as a result of a major disaster or emergency do not receive assistance for losses
for which they have already been compensated. Section 312 also requires the President to
establish procedures that ensure uniformity in preventing duplication of benefits. Under Section
312, any person, business, or other entity that has received or is entitled to receive federal disaster
assistance is liable to the United States for the repayment of such assistance to the extent that
such assistance duplicates benefits available for the same purpose from another source, including
insurance and other federal programs.
Stafford Act (42 U.S.C. §5174)
Section 408(a)(1) states that the President may provide assistance to individuals and households
who, as a result of a major disaster, “have necessary expenses and serious needs in cases in which
the individuals and households are unable to meet such expenses or needs through other means.”
FEMA Regulations
44 C.F.R. §206.191 establishes the policies implementing Section 312 of the Stafford Act, and
states that it is FEMA’s policy to prevent the duplication of benefits between its own programs,
other assistance programs, and insurance benefits. The regulation requires individuals to repay al
duplicated assistance to the agency providing the assistance. Under 44 C.F.R. §206.191, a federal
agency providing disaster assistance is responsible for preventing or rectifying duplication of
benefits when they occur. 44 C.F.R. §206.191 also includes a “delivery sequence” hierarchy
intended to prevent waste, fraud, and abuse of program assistance, including the duplication of
benefits (see Figure 2).
44 C.F.R. §206.111 defines the financial ability of the applicant to pay housing costs. According
to 44 C.F.R. §206.111 if the “household income has not changed subsequent to or as a result of
the disaster then the determination is based upon the amount paid for housing before the disaster.
If the household income is reduced as a result of the disaster then the applicant wil be deemed
capable of paying 30 percent of gross post disaster income for housing. When computing
financial ability, extreme or unusual financial circumstances may be considered by the Regional
Administrator.”
Small Business Act (15 U.S.C. §636(b)(1)(A))
The first proviso in 15 U.S.C. §636(b)(1)(A) states that the SBA is authorized to make disaster
loans “[p]rovided, [t]hat such damage or destruction is not compensated for by insurance or
otherwise.”
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Small Business Act (15 U.S.C. §647)
15 U.S.C. §647(a) prohibits the SBA from providing benefits that duplicate the assistance
provided by another department or agency of the federal government. It also states that if loan
applications are refused or denied by a department or agency due to administrative withholding or
due to an administratively declared moratorium, then no duplication is deemed to have occurred.
SBA Regulation
13 C.F.R. §123.101(c) states that applicants for SBA Disaster Loan assistance are ineligible for a
home disaster loan if their damaged property can be repaired or replaced with the proceeds of
insurance, gifts, or other compensation. These amounts must either be deducted from the amount
of the claimed losses or, if received after SBA has disbursed the loan, must be paid to SBA as
principal payments on the loan.
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Appendix B. SBA Memorandum 85-20
Figure B-1. SBA Memorandum 85-20

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Appendix C. FEMA and SBA Constituent Resources
The following provides various FEMA and SBA resources and information that may be of use for
constituents in declared disaster areas.
Application Websites
FEMA Assistance:
https://www.disasterassistance.gov/
SBA Assistance:
https://disasterloan.sba.gov/ela/
Contact Numbers
FEMA
1-800-621-FEMA (3362)
TTY: 1-800-462-7585
SBA
1-800-659-2955
TTY: 1-800-877-8339
Frequently Asked Questions About FEMA Individual Assistance
https://www.fema.gov/assistance/individual
Frequently Asked Questions About the SBA Disaster Loan Program
https://disasterloanassistance.sba.gov/ela/s/article/FAQ
SBA and IRS Forms
https://disasterloanassistance.sba.gov/ela/s/article/Paper-Forms

Author Information

Bruce R. Lindsay
Elizabeth M. Webster
Specialist in American National Government
Analyst in Emergency Management and Disaster

Recovery

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Acknowledgments
FEMA’s Office of External Affairs and Individual Assistance Division within the Office of Response and
Recovery, and SBA’s Office of Disaster Assistance provided input and insight on the application process
for IHP and SBA disaster loans.

Disclaimer
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under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
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