Federal Disaster Assistance for Businesses: Summaries and Policy Options

July 17, 2023 R47631

Federal Disaster Assistance for Businesses:
Summaries and Policy Options
July 17, 2023
Congressional Research Service
https://crsreports.congress.gov
R47631

Federal Disaster Assistance for Businesses: Summaries and Policy Options

R47631
Federal Disaster Assistance for Businesses: July 17, 2023
Summaries and Policy Options
Julie M. Lawhorn,
Following natural disasters and other emergencies, businesses often face damage to
Coordinator
property, inventory, and other assets. Businesses may also face challenges related to
Analyst in Economic
infrastructure damage, disruption of services, and dislocation of employees, suppliers,
Development Policy
and customers. These challenges impact the communities and regional economies that

rely on these businesses for revenue, employment, and civic and community
Bruce R. Lindsay,
contributions. The recovery process may take weeks, months, or years.
Coordinator
Specialist in American
Congress has expressed an interest in expediting business recovery to support disaster
National Government
recovery and to encourage the conditions for economic growth and development. Most

commonly, federal assistance to businesses is supplemental in nature, covering
uninsured and underinsured loss. In recent years, Congress has provided appropriations

for both direct business assistance and indirect or community-level assistance following
natural disasters. The two approaches may facilitate business recovery in different ways by addressing
different types of post-disaster challenges. Direct assistance to businesses has primarily been provided by
the Small Business Administration (SBA) in the form of low-interest loans, the U.S. Department of
Commerce (DOC) fishery disaster assistance, and the U.S. Department of Agriculture (USDA) assistance
programs for agricultural operations. Indirect or community-level assistance is generally designed to
address damage to transportation networks, infrastructure, telecommunications systems, and other physical
assets that facilitate commerce, communication, public health, and transportation. Community-level
assistance may be available through programs administered by several federal agencies, including USDA,
DOC, and the U.S. Department of Transportation, among others.
This report describes the challenges faced by businesses following a disaster and the rationales for federal
business recovery assistance. It also provides summaries of selected federal assistance programs. The
summaries include information regarding how declarations factor into the implementation of the programs.
Each of the assistance programs have varying eligibility requirements related to disaster declarations or
events. Some of these programs depend on a declaration to be put in effect and others may be available to
businesses and communities without a declaration.
As the frequency and severity of disasters increase, policymakers may seek to review the scale, scope, and
approach to federal business recovery assistance. Additionally, Congress may consider whether to target
disaster assistance to particular types of businesses and/or locations. For instance, certain types of
businesses may face unique barriers to recovery. Business size, type, location, community characteristics,
and other factors may make certain businesses more likely to have delayed or unsuccessful recovery
outcomes.
Policymakers may seek to review aspects of federal programs in order to address specific barriers to
recovery as well as barriers to accessing assistance. Congress may seek to review the level of assistance
that is available and potential gaps or unmet, industry-specific challenges. Congress may also seek to
review which objectives to prioritize, aspects of individual programs, and how programs may or may not be
integrated across federal agencies and different levels of government.
Congressional Research Service

Federal Disaster Assistance for Businesses: Summaries and Policy Options

Introduction
In the aftermath of a disaster, businesses often seek government assistance to address damages to
property, inventory, or other assets. Businesses may also need assistance to cover payroll
expenses, cash flow, or other expenses or needs.1 In general, businesses are expected to use
insurance and their own resources to recover from a disaster. Consequently, federal assistance to
businesses is supplemental in nature, covering uninsured and underinsured losses. Though several
federal programs and agencies provide disaster assistance to businesses, most federal disaster
assistance to businesses is provided by Small Business Administration (SBA) low-interest loans,
U.S. Department of Commerce fishery disaster assistance, and U.S. Department of Agriculture
(USDA) assistance for agricultural operations.2 As detailed in this report, the federal government
provides some grant assistance to businesses outside of agriculture and fishing sectors that are
recovering from a disaster; this grant assistance is comparatively limited in both scope and
amount.
Policymakers and state and local stakeholders may support policies designed to address recovery
challenges and facilitate business recovery efforts. Economic rationales for providing assistance
to businesses include the supposition that private firms are important to regional economies due
to their role as employers and contributors of goods, services, and tax revenues.3 Researchers note
that “disasters can also have macroeconomic impacts on production level, labor, technology, and
global supply chains.”4 Conversely, researchers point out that disasters may also have “short-term
positive economic impacts because of flow of government aid and increase in demand in certain
sectors.”5 Both negative and positive macroeconomic effects from disasters may impact
individual businesses and communities.6 Businesses experience different types of barriers to
recovery based on their size, location, sector, and other factors.
This report reviews literature on business disaster recovery challenges, provides general
overviews of selected business disaster assistance programs including those provided through the

1 Kathleen Tierney, “Businesses and Disasters: Vulnerability, Impacts, and Recovery,” in Handbook of Disaster
Research, eds. Havidán Rodríguez, Enrico L. Quarantelli, Russell R. Dynes (New York, NY: Springer, 2007),
https://link.springer.com/book/10.1007/978-0-387-32353-4.
2 The Federal Emergency Management Agency (FEMA) does not provide disaster assistance to businesses. FEMA’s
Public Assistance (PA) program includes assistance to state, tribal, territorial, and local governments, as well as eligible
nonprofit entities for urgent response undertaken immediately before or after a hazard strikes, as well as long-term
recovery assistance completed years later. For-profit businesses are ineligible for PA. However, eligible Applicants
may contract for-profit entities to perform PA-eligible work and receive reimbursement through the PA program for the
costs of the contract. For example, a city eligible for PA debris removal may contract a landscaping company to
remove fallen trees from city-owned property. The city could then pay the costs of the contract, and submit those costs
to FEMA for reimbursement on a cost-share basis. For more information about FEMA’s PA program, see CRS In
Focus IF11529, A Brief Overview of FEMA’s Public Assistance Program, by Erica A. Lee.
3 Simon A. Andrew, Vaswati Chatterjee, and Gary Webb, “Disasters and the Private Sector: Impact of Extreme Events,
Preparedness, and Contribution to Disaster Risk Reduction,” September 15, 2022, https://doi.org/10.1093/acrefore/
9780199389407.013.202; Kathleen Tierney, “Businesses and Disasters: Vulnerability, Impacts, and Recovery,” in
Handbook of Disaster Research, eds. Havidán Rodríguez, Enrico L. Quarantelli, Russell R. Dynes (New York, NY:
Springer, 2007), https://link.springer.com/book/10.1007/978-0-387-32353-4; and Christy M. Corey and Elizabeth A.
Deitch, “Factors Affecting Business Recovery Immediately after Hurricane Katrina,” Journal of Contingencies and
Crisis Management, vol. 19, no. 3, September 2011, p. 169.
4 Simon A. Andrew, Vaswati Chatterjee, and Gary Webb, “Disasters and the Private Sector: Impact of Extreme Events,
Preparedness, and Contribution to Disaster Risk Reduction,” September 15, 2022, https://doi.org/10.1093/acrefore/
9780199389407.013.202.
5 Ibid.
6 Ibid.
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Federal Disaster Assistance for Businesses: Summaries and Policy Options

SBA, and the Departments of Agriculture, Commerce, and Housing and Urban Development.
This report also provides policy options for congressional consideration.
Caveats and Limitations
This report provides summaries of selected federal programs that may become available after a
disaster. For the purposes of this report, a disaster is defined as a high-impact natural catastrophe
or human-caused incident (such as a hurricane, tornado, storm, high water, wind-driven water,
tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, wildfire, or
explosion). Each of these programs have varying eligibility requirements related to disaster or
emergency declarations or to the events themselves. Some of these programs depend on a
declaration to be put in effect and others may be available to businesses and communities without
a declaration.
This report does not cover assistance programs provided for cybersecurity attacks, pandemics, or
socioeconomic incidents such as labor strikes or economic downturns. Additionally, this report
does not include information about tax relief for disaster-affected businesses,7 continuity
planning, resiliency, insurance, or pre-disaster mitigation.8
In addition to the financial assistance programs highlighted in this report, federal agencies also
support business recovery through technical assistance, referrals, and other forms of outreach and
guidance. These non-financial forms of assistance are not covered in this report.
The list of business disaster assistance programs summarized in this report may not be
exhaustive.
Business Recovery Statistics and Challenges
Disasters have direct and indirect impacts on businesses. Direct impacts include damages to
property, equipment, inventory, and other assets. Indirect impacts include damage to public
infrastructure such as roads, and the interruption of services such as electricity,
telecommunications, water, waste water, and sanitation services. Additionally, businesses may
lose employees and customers due to the dislocation caused by the disaster. The disaster may
therefore interrupt connections to suppliers and customers. Supply and demand trends may shift
in other ways as well.9 Thus, it is fairly common for businesses to experience severe economic

7 Tax relief is generally limited to federally declared disasters. The Internal Revenue Service (IRS) also has the
authority to provide administrative relief in response to disaster events. At times, Congress has used the tax code to
provide targeted or temporary relief in response to disasters or related events. In some cases, this relief expanded
already available tax provisions (e.g., enhanced casualty loss deductions). Other provisions were specific to the disaster
circumstances (e.g., employee retention credit). For information about tax policy responses, see CRS Report R45864,
Tax Policy and Disaster Recovery, by Brendan McDermott and Jennifer Teefy.
8 This report provides information about mitigation if it is incorporated in the recovery process. For example,
businesses obtaining an SBA physical disaster loan may use up to 20% of the verified loss amount for mitigation
measures (e.g., grading or contouring of land; relocating or elevating utilities or mechanical equipment; building
retaining walls, safe rooms, or similar structures designed to protect occupants from natural disasters; or installing
sewer backflow valves) in an effort to prevent loss should a similar disaster occur in the future.
9 Yang Zhang et al., “Vulnerability of Community Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1
(2009), pp. 38-57, https://doi.org/10.1111/j.1467-7717.2008.01061.x; and Kathleen Tierney, “Businesses and Disasters:
Vulnerability, Impacts, and Recovery,” in Handbook of Disaster Research, eds. Havidán Rodríguez, Enrico L.
Quarantelli, Russell R. Dynes (New York, NY: Springer, 2007), https://link.springer.com/book/10.1007/978-0-387-
32353-4.
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Federal Disaster Assistance for Businesses: Summaries and Policy Options

injury even if they are not directly impacted by a disaster given the wide-range of disruption
caused by a disaster.
The number of businesses that fail to recover from a disaster is significant. According to the
Federal Alliance for Safe Homes, 40% of businesses do not reopen after a disaster, and another
25% close a year after the disaster.10 The Federal Alliance for Safe Homes also indicate that 75%
of businesses without a continuity plan fail three years after a disaster. 11 According to SBA, 90%
of businesses fail within two years after being struck by a disaster.12
Researchers note that an assortment of factors may influence business recovery outcomes, from
the scale and location of the disaster to business characteristics and pre-disaster economic
conditions. However, the impact of these factors may not be uniform across all disaster events
and researchers have observed that it is challenging to ascertain how the combination of factors
may influence business recovery outcomes.13 Despite challenges with assessing disaster recover
outcomes, researchers have observed that certain business sizes, types, locations, and community
and economic conditions generally contribute to delays in recovery or unsuccessful recovery
outcomes.14
Several studies indicate that small businesses face additional and different challenges with
recovery compared to large businesses. Small businesses may be especially vulnerable to
business closure following a disaster due to limited access to emergency capital and other
resources.15 Small businesses are also vulnerable because they are more likely to do business
within local markets and have neighborhood customers, all of whom may have been affected by
the disaster event as well.16 Additionally, small businesses may “lack the capacity to design and
implement hazard management programs.”17

10 The Federal Alliance for Safe Homes, Hurricane Toolkit, 2014, https://www.ready.gov/sites/default/files/2020-04/
ready_business_hurricane-toolkit.pdf. The percentage was derived from 2014 data from the Federal Emergency
Management Agency (FEMA) and U.S. Department of Labor.
11 Ibid.
12 U.S. Small Business Administration, SBA Disaster Workshop: Are You Prepared for the Next Big Disaster?
November 12, 2015.
13 For a summary of research on factors that may impact business recovery outcomes, see Elizabeth Ann Dietch and
Christy M. Corey, “Predicting Long-Term Business Recovery Four Years After Hurricane Katrina,” Management
Research Review, vol. 34, no. 3 (2011), pp. 311-324, https://doi.org/10.1108/01409171111116321.
14 Maria I. Marshall and Holly L. Schrank, “Small Business Disaster Recovery: A Research Framework,” Natural
Hazards, vol. 72 (2014), pp. 597-616, https://doi.org/10.1007/s11069-013-1025-z.
15 Kathleen Tierney, “Businesses and Disasters: Vulnerability, Impacts, and Recovery,” in Handbook of Disaster
Research, eds. Havidán Rodríguez, Enrico L. Quarantelli, Russell R. Dynes (New York, NY: Springer, 2007),
https://link.springer.com/book/10.1007/978-0-387-32353-4; Yang Zhang et al., “Vulnerability of Community
Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1 (2009), pp. 38-57, https://doi.org/10.1111/j.1467-
7717.2008.01061.x; and Gary R. Webb, Kathleen J. Tierney, and James M. Dahlhamer, “Predicting Long-Term
Business Recovery From Disaster: a Comparison of the Loma Prieta Earthquake and Hurricane Andrew,” Global
Environmental Change Part B: Environmental Hazards, vol. 4, issue 2 (2002), p. 47, https://doi.org/10.3763/
ehaz.2002.0405.
16 Regardless of size, businesses dependent on the discretionary income of local markets may also experience greater
financial difficulty as they recover, since the local residents may also be impacted by the disaster. See Gary R. Webb,
Kathleen J. Tierney, and James M. Dahlhamer, “Predicting Long-Term Business Recovery From Disaster: a
Comparison of the Loma Prieta Earthquake and Hurricane Andrew,” Global Environmental Change Part B:
Environmental Hazards, vol. 4, issue 2 (2002), pp. 47, 54, https://doi.org/10.3763/ehaz.2002.0405.
17 Yang Zhang et al., “Vulnerability of Community Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1
(2009), p. 40, https://doi.org/10.1111/j.1467-7717.2008.01061.x.
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Federal Disaster Assistance for Businesses: Summaries and Policy Options

Other studies note that certain business types and locations are more vulnerable than others to
physical hazards.18 For example, businesses that rely on supply chains and local markets (e.g.,
retail businesses) face more challenges in post-disaster recovery efforts.19 Researchers also note
that businesses in the construction and manufacturing sectors may recover at a faster rate than
businesses in wholesale or retail sectors.20
Broader economic trends and community context also impact business recovery outcomes. The
pre-disaster state of the regional economy often affects the rate and speed of business recovery.21
Housing recovery and business recovery are often linked as well. As businesses seek to re-
establish operations, their employees seek safe, proximate housing, which may not be sufficiently
repaired or reconstructed following a disaster event. Thus, housing shortages may impede
business recovery and challenges to business recovery may impact the rate and level of a region’s
housing recovery.22 Additionally, community and local governance conditions (e.g., the recovery
“groundwork,” planning activities, the degree of neighborhood recovery, the type and status of
building codes) may further impact the rate and success of business recovery.23
It may be challenging to determine whether or to what degree a business has “recovered.”
Business recovery may be measured by the ability to resume operations, the return to pre-disaster
conditions, the levels of profitability and viability, the degree of post-disaster resiliency, or some
other indicators. Some businesses do not reopen immediately following a disaster event, while
others may experience difficulties and close months or years after a disaster as a result of
challenges related to the event. Some businesses may not ever return to the same level of pre-
disaster activity. Researchers note that business owners may close their original business and
enter a new enterprise or different type of economic activity.24 For these reasons, business

18 Yang Zhang et al., “Vulnerability of Community Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1
(2009), pp. 38-57, https://doi.org/10.1111/j.1467-7717.2008.01061.x; and Christy M. Corey and Elizabeth A. Deitch,
“Factors Affecting Business Recovery Immediately after Hurricane Katrina,” Journal of Contingencies and Crisis
Management, vol. 19, no. 3, September 2011, p. 170.
19 Kathleen Tierney, “Businesses and Disasters: Vulnerability, Impacts, and Recovery,” in Handbook of Disaster
Research, eds. Havidán Rodríguez, Enrico L. Quarantelli, Russell R. Dynes (New York, NY: Springer, 2007), p. 278,
https://link.springer.com/book/10.1007/978-0-387-32353-4.
20 Ibid.
21 Gary R. Webb, Kathleen J. Tierney, and James M. Dahlhamer, “Predicting Long-Term Business Recovery From
Disaster: A Comparison of the Loma Prieta Earthquake and Hurricane Andrew,” Global Environmental Change Part
B: Environmental Hazards, vol. 4, issue 2 (2002), pp. 55-56, https://doi.org/10.3763/ehaz.2002.0405.
22 Walter Gillis Peacock, Nicole Dash, and Yang Zhang, “Sheltering and Housing Recovery Following
Disaster,” in Handbook of Disaster Research, eds. Havidán Rodríguez, Enrico L. Quarantelli, Russell R.
Dynes (New York, NY: Springer, 2007), pp. 258-259, https://link.springer.com/book/10.1007/978-0-387-
32353-4.
23 Maria I. Marshall and Holly L. Schrank, “Small Business Disaster Recovery: A Research Framework,” Natural
Hazards, vol. 72 (2014), pp. 597-616, https://doi.org/10.1007/s11069-013-1025-z; and Elizabeth Ann Dietch and
Christy M. Corey, “Predicting Long-Term Business Recovery Four Years After Hurricane Katrina,” Management
Research Review, vol. 34, no. 3 (YEAR), pp. 311-324, https://doi.org/10.1108/01409171111116321.
24 Daniel J. Alesch et al., “Organizations At Risk: What Happens When Small Businesses and Not-For-Profits
Encounter Natural Disasters,” Public Entity Risk Institute, 2001. In summarizing findings on business recovery by
Alesch et al. (2001), Tierney (2007) noted that
permanent closure following disasters is not, in and of itself, an indicator of disaster induced
failure; rather, in light of new post-disaster circumstances, it can be a wise strategic business
decision. Unfortunately, however, according to their studies, many business owners simply refuse
to acknowledge that their circumstances have been radically altered by disaster, Instead of
adapting, they continue to pump money into enterprises that have essentially no possibility of
success—a pattern that Alesch et al. refer to as the “dead business walking” syndrome.
(continued...)
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recovery is often framed as “a process, rather than an event” spanning multiple years, wherein
businesses may recover in different ways and in different timeframes.25
Direct and Indirect Approaches to Federal Business Recovery
Assistance
Federal disaster assistance is provided directly and indirectly to businesses (see Figure A-1). The
two approaches may facilitate business recovery in different ways by addressing different types of
post-disaster challenges. The following sections describe direct and indirect approaches in more
detail.
Direct Approach to Federal Disaster Assistance
Federal agencies typically provide direct assistance to businesses and intermediary organizations
in the form of loans.26 Programs such as the SBA Disaster Loan Program provide this type of
assistance. Through such loan programs, in exchange for capital to cover business recovery
expenses, businesses are encumbered by principal and, occasionally, interest payments. The
increased level of debt—in addition to existing debt and operations expenses—may negatively
impact a business’s long-term financial outlook.27 Business owners may opt to use their personal
savings instead of taking on new debt.28 On the other hand, federally supported lending programs
may provide favorable rates and/or terms compared to other capital sources. Direct payments and
grants are not available to all businesses, but may be provided to businesses in certain
industries—namely farm and agriculture, livestock, and fishery businesses.
Indirect Approach to Federal Disaster Assistance
Indirect or community-level assistance is generally designed to address damage to transportation
networks, infrastructure, telecommunications systems, and other physical assets that facilitate
commerce, communication, public health, and transportation.29 Community and economic
development programs may also provide credit and technical assistance to businesses through
existing, non-recovery loan programs and referral services, often facilitated by the agencies’
grantees, partners, and/or regional and local office staff. In some cases, federal agencies may

See Kathleen Tierney, “Businesses and Disasters: Vulnerability, Impacts, and Recovery,” in Handbook of
Disaster Research, eds. Havidán Rodríguez, Enrico L. Quarantelli, Russell R. Dynes (New York, NY:
Springer, 2007), https://link.springer.com/book/10.1007/978-0-387-32353-4.
25 Yang Zhang et al. “Vulnerability of Community Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1
(2009), pp. 38-57, https://doi.org/10.1111/j.1467-7717.2008.01061.x; and Maria I. Marshall and Holly L. Schrank,
“Small Business Disaster Recovery: A Research Framework,” Natural Hazards, vol. 72 (2014), pp. 597-616,
https://doi.org/10.1007/s11069-013-1025-z.
26 See, for example, the loan program descriptions in the “Small Business Administration” and “U.S. Department of
Agriculture—Loans” sections.
27 Kathleen Tierney, “Businesses and Disasters: Vulnerability, Impacts, and Recovery,” in Handbook of Disaster
Research, eds. Havidán Rodríguez, Enrico L. Quarantelli, Russell R. Dynes (New York, NY: Springer, 2007), p. 283,
https://link.springer.com/book/10.1007/978-0-387-32353-4.
28 Gary R. Webb, Kathleen J. Tierney, and James M. Dahlhamer, “Predicting Long-Term Business Recovery from
Disaster: A Comparison of the Loma Prieta Earthquake and Hurricane Andrew,” Global Environmental Change Part
B: Environmental Hazards, vol. 4, issue 2 (2002), p. 55, https://doi.org/10.3763/ehaz.2002.0405.
29 See, for example, the program descriptions in the “Economic Development Administration” and “Community
Development Block Grants for Disaster Recovery” sections.
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provide non-financial forms of community-level assistance, including post-disaster convening,
assessment, planning, technical assistance, and other place-based business recovery activities.30
Community-level disaster recovery assistance programs differ from FEMA and SBA disaster
assistance programs in several ways. For instance, with some exceptions, the eligible recipients of
community and economic development programs are usually public entities and institutions
rather than individuals or businesses. Additionally, the method of appropriating, allocating, and
distributing funds is different from the process for FEMA and SBA programs, and the time frame
for implementation is generally focused on supporting long-term economic recovery or resiliency
plans and economic restructuring initiatives.
Selected Summaries
The following program summaries provide brief overviews of selected federal business disaster
assistance programs, including details about program authorization and how agencies have
implemented them. As will be discussed, some federal programs require a major disaster or an
emergency declaration pursuant to the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (Stafford Act; P.L. 93-288, as amended; codified at 42 U.S.C. §§5121 et seq.); or a
disaster declaration pursuant to the Small Business Act (P.L. 83-163, as amended; 15 U.S.C.
§§631 et seq.).31
Small Business Administration32
The Small Business Administration’s (SBA’s) Disaster Loan Program has been a major source of
assistance for the restoration of commerce and households in areas stricken by disasters since the
agency’s creation in 1953.33 The SBA is authorized to provide low-interest, long-term disaster
loans, either on a direct basis or in partnership with private lenders, to eligible businesses and
nonprofit organizations to help them repair, rebuild, and recover from uninsured, underinsured, or
otherwise uncompensated economic losses after a declared disaster.34

30 For instance, the U.S. Department of Commerce (DOC) and DOC agencies are involved in the Economic Recovery
Support Function (ERSF) under the National Disaster Recovery Framework (NDRF) that involves businesses and other
local and regional partners in post-disaster, community and economic recovery efforts. Within the NDRF, EDA’s role
is to “facilitate the delivery of federal economic development assistance to support long-term economic recovery
planning and project implementation in communities across the nation.” See FEMA, “Economic Recovery Support
Function,” https://www.fema.gov/sites/default/files/2020-06/rsf_economic.pdf. See also FEMA’s NDRF website for a
description of the other five Recovery Support Functions (RSFs) at https://www.fema.gov/emergency-managers/
national-preparedness/frameworks/recovery.
31 Figure A-1 provides a summary of business disaster assistance programs that require a declaration.
32 This section authored by Bruce R. Lindsay, Specialist in American National Government, Government and Finance
Division.
33 For more information about the SBA Disaster Loan Program, see CRS Report R44412, SBA Disaster Loan Program:
Frequently Asked Questions, by Bruce R. Lindsay.
34 For more information about SBA disaster loan interest rates, see CRS Report R46963, SBA Disaster Loan Interest
Rates: Overview and Policy Options, by Bruce R. Lindsay and Darryl E. Getter. For more information about SBA loan
limits, see CRS Report R47245, SBA Disaster Loan Limits: Policy Options and Considerations, by Bruce R. Lindsay
and R. Corinne Blackford.
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According to SBA, businesses of any size that
are located in a declared disaster area and that
SBA Disaster Loan Terms and Interest
have incurred damage during that disaster,
Rates
may apply for a loan to replace damaged
SBA disaster loans have terms up to 30 years, and
interest rate ceilings set in statute. If the statutory
property or restore the business to its pre-
calculations yield an interest rate above the statutory
disaster condition.35 Disaster loans provided to
ceiling, the interest rate defaults to the ceiling.
businesses fall into two categories: Business
SBA Physical Disaster Business loans: 8% per
Physical Disaster Loans and Economic Injury
annum, or 4% per annum if the applicant is unable to
Disaster Loans (EIDLs).
obtain credit elsewhere.
SBA EIDL: 4% per annum.
The SBA Disaster Loan Program is not
available to businesses unless a declaration is
15 U.S.C. §636(d)(5)(A)-(D).
issued pursuant to the Stafford Act or a
declaration is issued pursuant to the Small Business Act.36
Business Physical Disaster Loans
Business Physical Disaster Loans can be used to repair or replace damaged physical property
including machinery, equipment, fixtures, inventory, and leasehold improvements that are not
covered by insurance. Businesses that make improvements that reduce the risk of future property
damage may be eligible for a 20% loan amount increase above the real estate damage.37
Interest rates for Business Physical Disaster Loans cannot exceed 8% per annum or 4% per
annum if the business cannot obtain credit elsewhere.38 Business Physical Disaster Loans can
have maturities up to 30 years. The maximum loan amount provided for a Business Physical
Disaster Loan is $2 million.
Economic Injury Disaster Loans
EIDLs are available to businesses located in a declared disaster area that have suffered substantial
economic injury, are unable to obtain credit elsewhere, and are defined as small by SBA size
regulations.39 Small agricultural cooperatives and most private and nonprofit organizations that
have suffered substantial economic injury as the result of a declared disaster are also eligible for
EIDLs.

35 It should be noted that SBA applies size standards to determine disaster loan eligibility. Size standards vary
according to many factors including industry type, average firm size, and start-up costs and entry barriers. For more
information on SBA business size requirements, see CRS Report R40860, Small Business Size Standards: A Historical
Analysis of Contemporary Issues, by Robert Jay Dilger, R. Corinne Blackford, and Anthony A. Cilluffo.
36 See Appendix A for more information about the different types of declaration that trigger the SBA Disaster Loan
Program.
37 For more information about SBA pre-disaster mitigation, see CRS Report R46118, The SBA Pre-Disaster Mitigation
Loan Pilot Program: Considerations for Congress and Policy Options, by Bruce R. Lindsay.
38 15 U.S.C. §636(d)(4)(C) and 15 U.S.C. §636(d)(5)(C).
39 Size standards vary according to many factors including industry type, average firm size, and start-up costs and entry
barriers. For more information on SBA business size requirements, see CRS Report R40860, Small Business Size
Standards: A Historical Analysis of Contemporary Issues, by Robert Jay Dilger, R. Corinne Blackford, and Anthony A.
Cilluffo. See also 13 C.F.R. §123.300 for eligibility requirements.
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EIDLs are designed to help businesses meet
financial obligations and operating expenses
Substantial Economic Injury
that could have been met had the disaster not
Pursuant to the Small Business Act, the term
“substantial economic injury” means economic harm to
occurred. The loan proceeds can only be used
a business concern that results in the inability of the
for working capital necessary to enable the
business concern to:
business or organization to alleviate the
•
meet its obligations as they mature;
specific economic injury and to resume
•
pay its ordinary and necessary operating expenses;
normal operations. The interest rate ceilings
or
for EIDLs are statutorily set at 4% per annum
•
market, produce, or provide a product or service
or less and the loans can have maturities up to
ordinarily marketed, produced, or provided by the
30 years.40 The maximum loan amount for an
business concern.
EIDL is $2 million.41
15 U.S.C. §636(b)(3)(A)(i i)
U.S. Department of
Agriculture42
Agricultural production involves a certain level of risk related to weather, yield, markets, price,
and other factors that can impact farming as a business. Congress has authorized support for
farmers and ranchers to manage risk, pay for losses caused by natural disaster events, and
incentivize adaptive measures.43 The U.S. Department of Agriculture (USDA) administers
programs to support U.S. farm businesses following natural disaster events through direct
payments for loss, loans, cost-sharing to rehabilitate damaged lands, and financial and technical
assistance to implement conservation practices.
Each USDA program has a different administrative process to request assistance. Assistance is
provided directly from USDA through an existing network of local USDA offices.44 The loan
programs require a disaster declaration or designation for eligibility, but other programs do not.45
Many of the USDA programs receive mandatory funding amounts that are “such sums as
necessary” and are not subject to annual discretionary appropriations. Other programs, however
require annual or supplemental appropriations.46 Most programs have permanent authorization
and aim to assist producers recovering from production, financial, and physical loss related to or
caused by natural disasters. Occasionally Congress authorizes supplemental funding for
agricultural loss that USDA administers through temporary programs. These temporary or ad hoc
programs are not discussed in this section.47

40 The 4% interest rate ceiling is established in regulation: 13 C.F.R. §123.302.
41 15 U.S.C. §636(b)(8)(A).
42 This section authored by Megan Stubbs, Specialist in Agricultural Conservation and Natural Resources Policy,
Resources, Science and Industry Division.
43 As discussed earlier, insurance, preventative measures, and income or revenue support are not covered in this report.
For additional information on insurance options related to agriculture, see CRS Report R46686, Federal Crop
Insurance: A Primer, by Stephanie Rosch; for conservation related practices, see CRS Report R40763, Agricultural
Conservation: A Guide to Programs, by Megan Stubbs; and for income support, see CRS Report R43758, Farm Safety
Net Programs: Background and Issues, by Stephanie Rosch.
44 To find a local USDA Service Center, see https://offices.sc.egov.usda.gov/locator/app.
45 See Appendix A for more information about USDA’s Disaster Designation Process.
46 For a summary of the agricultural disaster assistance programs, see CRS In Focus IF10565, Federal Disaster
Assistance for Agriculture, by Megan Stubbs.
47 For additional information on supplemental funding for agricultural losses, see CRS Report RS21212, Agricultural
Disaster Assistance, by Megan Stubbs.
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USDA also administers grant and loan programs that support rural businesses. Response or relief
to disaster events, however, is not a criterion for the rural business programs.48 Similarly, USDA
programs that support community disaster assistance (and do not assist farm businesses directly)
are not covered in this section.49
Direct Payments
Some USDA programs provide direct payments to farm and animal businesses to cover
production losses above normal mortality. Advance sign-up and fees are not required to
participate; however, application deadlines exist following a qualified loss. These programs are
permanently authorized and receive mandatory funding amounts of “such sums as necessary.”50
USDA’s Farm Service Agency (FSA) administers the following direct payment programs, for
which producers may file applications through local FSA offices.51
• Livestock Forage Disaster Program (LFP). LFP provides payments to eligible
livestock producers who suffered a loss of grazing forage for covered livestock
due to drought on privately owned or cash-leased pastureland (including cropland
planted specifically for grazing), or fire if on rangeland managed by a federal
agency. A county’s U.S. Drought Monitor intensity level and the drought’s
severity and duration trigger payment.52 LFP payments are a percentage of the
monthly feed cost for all covered livestock for up to five months, depending on
the drought’s severity.
• Livestock Indemnity Program (LIP). LIP provides payments to eligible
livestock owners and contract growers for livestock deaths in excess of normal
mortality caused by adverse weather. Eligibility is predicated on not only the
occurrence of an eligible loss condition but also direct causation to the death or
injury of the animal. The LIP payment rate is equal to 75% of the average fair
market value of the deceased animal type.
• Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish
Program (ELAP). ELAP provides payments to producers of livestock,
honeybees, and farm-raised fish as compensation for losses due to disease,
adverse weather, feed or water shortages, or other conditions not covered under
LIP or LFP.

48 For additional information on rural business support programs, see CRS Report R47438, Federal Credit Assistance
and Grant Programs for Rural Businesses: In Brief, coordinated by Lisa S. Benson.
49 Examples of community disaster assistance programs include the Emergency Watershed Protection (EWP) Program,
administered by the Natural Resources Conservation Service (NRCS) and the Emergency and Imminent Community
Water Assistance Grants, administered by the Rural Utilities Service (RUS). Both programs assist communities during
emergency situations and do not require a disaster declaration or designation. The programs are permanently
authorized, but subject to appropriations. For additional information, see CRS Report R42854, Emergency Assistance
for Agricultural Land Rehabilitation, by Megan Stubbs and CRS Report R46471, Federally Supported Projects and
Programs for Wastewater, Drinking Water, and Water Supply Infrastructure.
50 The four direct-payment programs are authorized under Section 1501 of the Agricultural Act of 2014, as amended
(P.L. 113-79; 7 U.S.C. §9081). For additional information on the four programs, see CRS Report RS21212,
Agricultural Disaster Assistance, by Megan Stubbs.
51 To find a local Farm Service Agency (FSA) office, see https://offices.sc.egov.usda.gov/locator/app.
52 The U.S. Drought Monitor is a collaboration between the USDA, National Oceanic and Atmospheric Administration,
and the National Drought Mitigation Center at the University of Nebraska-Lincoln. For additional information, see
http://droughtmonitor.unl.edu/.
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• Tree Assistance Program (TAP). TAP makes payments to qualifying orchardists
and nursery tree growers to replant or rehabilitate trees, bushes, and vines
damaged by natural disasters. Insurance programs generally cover losses in crop
production.53
Loans
USDA can provide low-interest loans to help farm and animal businesses recover from
production or physical losses due to natural disasters, or it can provide temporary loan relief for
existing FSA farm loans. These loan options are triggered when a county is designated as a
disaster area under a presidential major disaster declaration or emergency declaration pursuant to
the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act; 42 U.S.C.
§§5121 et seq.), or a USDA secretarial disaster designation (see Figure 1 and Appendix A).
Although Stafford Act declarations related to agricultural losses are uncommon, USDA has
authority to issue a secretarial disaster designation that can also trigger eligibility. FSA
administers the loan programs, and local FSA offices accept applications. USDA loan programs
are subject to appropriations.54
• Emergency Farm Loans. Loans may help producers recover from production
and physical losses.55 A qualified applicant can borrow up to 100% of actual
production (e.g., loss of a crop) or physical losses (e.g., repairing or replacing
damaged or destroyed structures or replanting permanent crops, such as
orchards). Loan totals may not exceed $500,000. A producer must operate in a
county declared eligible or in a contiguous county and must meet the loan
requirements.
• Disaster Set-Aside. A producer with an existing FSA farm ownership or
operating loan located in a designated disaster area or contiguous county may
apply to set aside one payment to allow the operation to continue.56 The payment
set-aside is not forgiven and must be repaid prior to final maturity of the note.
Any principal set-aside continues to accrue interest until repaid.

53 See CRS In Focus IF11924, Federal Crop Insurance Program Support for Natural Disasters, by Stephanie Rosch.
54 For more information on the USDA loan programs, see CRS Report R46768, Agricultural Credit: Institutions and
Issues, by Jim Monke.
55 Emergency farm loans are authorized under Title III of the Consolidated Farm and Rural Development Act, as
amended (7 U.S.C. §§1961 et seq.). For more information, see USDA, FSA, “Emergency Farm Loans,” at
https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/emergency-farm-loans/index.
56 The Disaster Set-Aside Program is authorized under Section 331A of the Consolidated Farm and Rural Development
Act, as amended (7 U.S.C. §1981a). For more information see, USDA, FSA, “Disaster Set-Aside Program,” fact sheet,
August 2019, at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2019/disaster-set-aside-
program-factsheet-19.pdf.
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Figure 1. USDA Secretarial Disaster Designations—Crop Year 2022
Primary and Contiguous Counties Designated for Crop Disaster Losses

Source: USDA, Farm Service Agency, Program Deliver/Safety Net Division, “All Secretarial Designations as of
April 12, 2023.”
Notes: A crop year is the 12-month period in which the planted crop is normally grown and harvested. This
varies for each crop based on time of harvest.
Cost-Share Assistance
Some USDA programs pay a percentage of the cost to reinstall conservation infrastructure or
rehabilitate damaged land. Advance sign-up generally is not required. The programs are not
designed to pay for impairments existing before the disaster event. FSA administers the following
cost-share programs, for which producers may file applications through local FSA offices. These
programs are permanently authorized but subject to appropriations.57
• Emergency Conservation Program (ECP). ECP assists landowners in restoring
land used in agricultural production damaged by a natural disaster. This can
include removing debris, restoring fences and conservation structures, and
providing water for livestock in drought situations. Payments are made to
individual producers based on a share of the cost of completing the practice. This
can be up to 75% of the cost, or up to 90% of the cost if the producer is
considered to be a limited-resource, socially disadvantaged, or beginning farmer
or rancher.58

57 The cost-share assistance programs are authorized under Title IV of the Agricultural Credit Act of 1978 (P.L. 95-
334; 16 U.S.C. §§2201-2206). For additional information on the programs, see CRS Report R42854, Emergency
Assistance for Agricultural Land Rehabilitation, by Megan Stubbs.
58 The definition of a limited-resource producer is an applicant with direct or indirect gross farm sales not more than
the current indexed value in each of the previous two years who has a total household income at or below the national
poverty level for a family of four or less than 50% of county median household income in each of the previous two
years. For more information, see USDA’s online self-determination tool at https://lrftool.sc.egov.usda.gov/
Default.aspx. Socially disadvantaged under the Emergency Conservation Program (ECP) is defined under 7 U.S.C.
(continued...)
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• Emergency Forest Restoration Program (EFRP). EFRP provides cost-share
assistance to private forestland owners to repair and rehabilitate damage caused
by natural disasters on nonindustrial private forestland. Eligible practices may
include restoration measures that would restore forest health and related
resources following a disaster. Financial assistance is calculated as the lesser of
75% of the participant’s actual cost of restoration measures or the FSA-
established not-to-exceed rate times the extent of restoration measures
performed.
Conservation
Certain USDA conservation programs that are not emergency programs may provide assistance
following natural disaster events.59 In many cases, this assistance comes through the use of
waivers and flexibility provided to the Secretary of Agriculture. Other assistance is offered
through adaptive measures that reduce drought or flooding risk through various management
decisions and practices, which are not discussed in detail in this report.60
• Conservation Reserve Program (CRP). CRP uses mandatory funding to
provide annual payments to agricultural producers to take highly erodible and
environmentally sensitive land out of production and install resource-conserving
practices for 10 or more years.61 Haying and grazing may occur on CRP acres
under emergency and certain nonemergency conditions. Emergency haying and
grazing of CRP acres is generally authorized during periods of severe drought or
similar natural disaster (e.g., wildfire).62 Limitations apply during the primary
nesting season.63 Not all CRP practices are eligible for haying and grazing; a
request must be filed with the local FSA office before any activity begins.
• Environmental Quality Incentives Program (EQIP). EQIP is a voluntary
program that uses mandatory funding to provide financial and technical
assistance to agricultural producers to address natural resource concerns on

§2279 as someone “subjected to racial or ethnic prejudice because of their identity as members of a group without
regard to their individual qualities.” This definition does not include gender. A beginning farmer or rancher generally
is defined as having owned or operated a farm or ranch for less than 10 years.
59 For additional information on USDA conservation programs generally, see CRS Report R40763, Agricultural
Conservation: A Guide to Programs, by Megan Stubbs.
60 Examples of adaptive measures include soil health practices—such as no till or reduced tillage, cover crop adoption,
and conservation crop rotations—that can increase soil organic matter over time and reduce soil moisture loss.
Adoption of water control practices—such as riparian buffers, terraces, wetland creation, and drainage management—
generally reduces the risk of soil erosion and flooding risk as well as water quality improvement.
61 The Conservation Reserve Program (CRP) is authorized under Title XII of the Food Security Act of 1985, as
amended (P.L. 99-198; 16 U.S.C. §§3831-3835). For additional information on CRP emergency haying and grazing,
see USDA, FSA, “CRP Haying and Grazing: Emergency and Non-Emergency Use,” fact sheet, May 2021, at
https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/crp_haying_grazing_factsheet.pdf.
62 Emergency haying and grazing status is reviewed every Thursday using the U.S. Drought Monitor. Approved
counties are listed on the FSA “Emergency Haying and Grazing” website, at https://www.fsa.usda.gov/programs-and-
services/conservation-programs/conservation-reserve-program/emergency-haying-and-grazing/index.
63 The primary nesting season is established in each state as the nesting season for birds in the local area that are
economically significant, in significant decline, or conserved in accordance with federal or state law (7 C.F.R.
§1410.2). For a list of primary nesting dates and durations, see USDA, FSA, “Primary Nesting Season Dates and
Duration,” June 16, 2020, at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/Conservation/PDF/
Primary%20Nesting%20Season_June_16_2020.pdf.
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agricultural and forestland.64 Emergency assistance under EQIP is generally
limited to immediate soil and water protection needs, including assistance with
emergency animal mortality management. In the past, USDA has announced
special EQIP sign-ups for farmers and ranchers in hurricane-, flood-, or drought-
affected areas. The Natural Resources Conservation Service (NRCS) administers
EQIP, and applications may be filed at any local NRCS office.65
Department of Commerce
The U.S. Department of Commerce (DOC) includes the National Oceanic and Atmospheric
Administration (NOAA), which administers disaster assistance to fishing communities and
fishing-related businesses, such as marinas, recreational fishing equipment retailers, and
commercial or charter fishing businesses. DOC also includes the U.S. Economic Development
Administration (EDA), which provides disaster recovery assistance to multiple affected parties.
Fishery Disaster Assistance66
Congress has directed the Secretary of Commerce to provide assistance to fishing communities
following disruptive events that result in fish population declines and economic losses.67 These
authorities are established in the Magnuson-Stevens Fishery Conservation and Management Act
(MSA; P.L. 109-479),68 and were amended, most recently, through the Fishery Resource Disasters
Improvement Act (FRDIA; P.L. 117-328, Division S, Title II) in December 2022. MSA defines a
fishery resource disaster to include an unexpectedly large decrease in fish stock biomass or other
change that results in significant loss of access to the fishery resource.69 This type of disaster is
one that results in significant revenue loss or negative subsistence impact due to a natural (i.e.,
weather, climatic, hazard, or biology-related event),70 discrete human-associated, or an
undetermined cause, and may include the loss of fishing vessels and gear for a substantial period
of time.71 Reasonably predictable, foreseeable, and recurrent fishery cyclical variations in species

64 The Environmental Quality Incentives Program (EQIP) is authorized under Title XII of the Food Security Act of
1985, as amended (P.L. 99-198; 16 U.S.C. §§3839aa-3839aa-7). For additional information on emergency assistance
through EQIP, see USDA, NRCS, “Natural Disaster Recovery Assistance through EQIP,” at
https://www.nrcs.usda.gov/sites/default/files/2022-09/
Natural%20Disaster%20Recovery%20Assistance%20through%20EQIP.pdf.
65 To find a local Natural Resources Conservation Service (NRCS) office, see https://offices.sc.egov.usda.gov/locator/
app.
66 This section authored by Anthony R. Marshak, Analyst in Natural Resources Policy, Resources, Science and Industry
Division.
67 16 U.S.C. §1861a. The Secretary of Commerce has delegated the responsibilities to the Under Secretary of
Commerce for Oceans and Atmosphere, also known as the National Oceanic and Atmospheric Administration (NOAA)
Administrator (Department of Commerce, “Under Secretary of Commerce for Oceans and Atmosphere and
Administrator of the National Oceanic and Atmospheric Administration, DOO 10-15, Sec 3.01.aa, at
https://www.osec.doc.gov/opog/dmp/doos/doo10_15.html).
68 Ibid.
69 16 U.S.C. §1861a(a)(1)(C).
70 Examples of natural events (i.e., natural causes) listed in the Fishery Resource Disasters Improvement Act (FRDIA)
include a hurricane, flood, harmful algal bloom, tsunami, hypoxic event, drought, marine heatwave, disease, or El Niño
effects on water temperature.
71 16 U.S.C. §1861a(a)(1)(C). See Appendix A for DOC fishery disaster designations.
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distribution or stock abundance, or reductions in fishing opportunities from conservation and
management measures pursuant to MSA do not apply.72
Fishery Disaster Assistance Program Funding
Once the Secretary determines that a fishery resource disaster exists, Congress may appropriate
funds for financial assistance to the affected parties (e.g., harvesters, vessel crew, fishing
businesses). Typically, Congress appropriates funding as needs arise rather than in anticipation of
future needs.73 As of 2020, approximately half of fishery disaster determinations were made
within six months of the initial request and over two-thirds were made within one year.74
Following appropriation by Congress for one or more fishery disasters, the Secretary of
Commerce may then begin the process for disbursing funds to communities. MSA authorizes the
Secretary to provide such appropriated funds to an affected state, Indian tribe, or interstate marine
fisheries commission. The Secretary may also use those funds in cooperation with any such
parties.75 All requests made to NOAA after December 29, 2022, follow the protocols and
timeframes established in the FRDIA; requests received prior to that date follow prior guidance
established in the NOAA Fisheries Policy on Disaster Assistance.76
Forms of Fishery Disaster Assistance
The Secretary may provide funds to affected parties as a grant, direct payment, cooperative
agreement, loan, or contract.77 These forms of federal assistance distribute funds to the states or
other entities or governments, such as tribes or native communities.78 After funds are
appropriated, the affected state, community, or group must submit a spend plan to the Secretary,
together with a grant proposal, which are evaluated by National Marine Fisheries Service
(NMFS) regional offices.79 The spend plan must include information, if applicable, about
objectives; expected outcomes, with an emphasis on addressing the factor contributing to the
fishery resource disaster and minimizing future uninsured losses; a statement of work; and budget
details.80 Eligible uses of funds allocated for fishery resource disasters include activities to restore
the fishery affected by such a disaster, to prevent a similar disaster in the future, or to assist the
affected fishing community.81 Individuals carrying out these activities are to be those who are, or
were, employed in a commercial, charter, or Indian Tribe fishery for which the Secretary has
determined that a fishery resource disaster has occurred.82 Following approval of the spend plan
and disbursal of funds, NOAA, states, interstate marine fisheries commissions, and industry
representatives often work together to distribute assistance to fishing communities and to allocate

72 Ibid.
73 CRS Report RL34209, Fishery Disaster Assistance, by Anthony R. Marshak.
74 Ibid.
75 16 U.S.C. §1861a(a)(2)(B).
76 NOAA, NMFS, “Fishery Disaster Assistance,” at https://www.fisheries.noaa.gov/national/funding-and-financial-
services/fishery-disaster-assistance; Denit 2021.
77 16 U.S.C. §1861a(a)(6)(F)(ii).
78 NOAA, NMFS, “Frequent Questions: Fishery Disaster Assistance,” at https://www.fisheries.noaa.gov/national/
resources-fishing/frequent-questions-fishery-disaster-assistance. Hereinafter NOAA, NMFS, “Frequent Questions:
Fishery Disaster Assistance.”
79 16 U.S.C. §1861a(a)(6)(D); NOAA, NMFS, “Frequent Questions: Fishery Disaster Assistance.”
80 NOAA, NMFS, “Frequent Questions: Fishery Disaster Assistance.”
81 16 U.S.C. §1861a(a)(6)(F)(iii).
82 Ibid.; See also CRS Report RL342909, Fishery Disaster Assistance.
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funding among potential projects.83 Additionally, small fishing-related businesses may qualify for
certain SBA loans or federal grants available through EDA, the U.S. Department of Labor, or the
FEMA.84 These loans may help to address economic injury and physical damage.85
Economic Development Administration86
In response to some major disasters and emergencies, Congress has provided supplemental
funding for long-term disaster recovery for selected incidents under the EDA’s economic
adjustment assistance (EAA) program.87 The EAA program supports a variety of activities,
including expenses related to disaster relief, the restoration of infrastructure, flood mitigation, and
other forms of assistance for specific areas.88 In contrast to other federal disaster assistance,
EDA’s disaster recovery assistance is generally designed to support “long-term community
economic recovery planning and project implementation, redevelopment and resilience.”89
Disaster recovery appropriations for the EAA program are generally provided on a supplemental
basis at the discretion of Congress (i.e., the programs do not receive annual appropriations).90 The
appropriations laws that provide the supplemental funding generally specify the disasters or
disaster-affected areas that are to receive funding. The appropriations laws typically state that the
EAA funding is for areas that received major disaster or emergency declarations “under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. §§5121 et seq.).”91

83 16 U.S.C. §1861a(a)(6)(F)(iii).
84 NOAA, NMFS, “Relevant Legislation and Resources—Fishery Disaster Assistance,” at
https://www.fisheries.noaa.gov/national/funding-and-financial-services/relevant-legislation-and-resources-fishery-
disaster.
85 NOAA, NMFS, “Frequent Questions: Fishery Disaster Assistance.”
86 This section authored by Julie M. Lawhorn, Analyst in Economic Development, Government and Finance Division.
87 For the authorization of appropriations for EDA’s disaster economic recovery activities, see section 703 of the Public
Works and Economic Development Act (42 U.S.C. §3233).
88 See 42 U.S.C. §§3149(c)(2), 3233. EDA grants are awarded on a competitive basis to states, cities, counties, tribal
governments, economic development districts (EDDs), and other political subdivisions of states, as well as institutions
of higher education or a consortium of such institutions, and not-for-profit organizations acting in cooperation with
officials of a political subdivision of a state (i.e., eligible recipients). See, for example, EDA, “FY 2023 Disaster
Supplemental NOFO,” https://www.grants.gov/web/grants/view-opportunity.html?oppId=347414.
89 EDA, “Disaster Recovery,” https://www.eda.gov/strategic-initiatives/disaster-recovery. For an example of EDA’s
application guidance for interested applicants in recent funding opportunities, see EDA, “FY2023 EDA Disaster
Supplemental Notice of Funding Opportunity (NOFO) (Disaster Supplemental NOFO),” https://www.grants.gov/web/
grants/view-opportunity.html?oppId=347414.
90 For a summary of EDA’s disaster recovery activities and appropriations by program, see Table 2 in CRS Report
R46991, Economic Development Administration: An Overview of Programs and Appropriations (FY2011-FY2023).
91 See, for example, the Disaster Relief Supplemental Appropriations Act, 2023 (Division N of the Consolidated
Appropriations Act, 2023, P.L. 117-328), which provided EDA with supplemental funding for “... areas that received a
major disaster designation as a result of Hurricanes Ian and Fiona, and of wildfires, flooding, and other natural disasters
occurring in calendar years 2021 and 2022 under the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. §§5121 et seq.).”
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Department of Housing and Urban Development
Community Development Block Grants for Disaster Recovery
(CDBG-DR)92
In response to some major disasters and emergencies, Congress has provided supplemental
funding for long-term disaster recovery and other related purposes for selected incidents under
the conventional Community Development Block Grant (CDBG) program’s statutory authority—
commonly referred to as CDBG-DR.93 Typically, CDBG-DR funds are directed to the most
impacted and distressed areas with federal emergency or disaster declarations under the Stafford
Act.94 CDBG-DR funds are subject to the conventional CDBG program’s statutory and regulatory
requirements,95 as well as any disaster-specific requirements or waivers established by the
Department of Housing and Urban Development (HUD) through Federal Register notices.96
After CDBG-DR funds are appropriated, HUD establishes rulemaking and allocates funds to
eligible grantees such as states, units of general local government, tribes, and insular areas.97
Although HUD does not allocate CDBG-DR funds directly to businesses, grantees could use
CDBG-DR funds to establish programs or administer activities that provide business assistance or
fulfill broader economic revitalization needs, related to a covered disaster.98 Any CDBG-DR
funded activity must be eligible under the conventional CDBG program’s statute and
regulations,99 and meet one of the conventional program’s national objectives:
1. principally benefit low- and moderate-income (LMI) persons;100
2. aid in the prevention or elimination of slums or blight; or
3. meet an urgent need by addressing conditions that pose a serious and immediate
threat to the health and safety of residents.101
Additionally, some recent CDBG-DR rulemaking published by HUD has required grantees to
demonstrate how planned activities will meet the needs of vulnerable populations.102

92 This section authored by Joseph V. Jaroscak, Analyst in Economic Development, Government and Finance Division.
93 42 U.S.C. §5301.
94 Please note that CDBG-DR funding allocations are based on availability of funding, as well as HUD assessments of
disaster impact and needs unmet by other forms of federal assistance.
95 42 U.S.C. §§5301 et seq. and 24 C.F.R. §§570 et seq.
96 For a recent example, see U.S. Department of Housing and Urban Development (HUD), “Allocations for Community
Development Block Grant Disaster Recovery and Implementation of the CDBG-DR Consolidated Waivers and
Alternative Requirements Notice,” 87 Federal Register 31636-31667, May 24, 2022.
97 HUD, Basically CDBG, Chapter 20: Disaster Recovery (CDBG-DR), July 2014, p. 4,
https://www.hudexchange.info/sites/onecpd/assets/File/Basically-CDBG-State-Chapter-20-CDBG-DR.pdf.
98 Ibid., p. 5.
99 42 U.S.C. §5305 and 24 C.F.R. §570.200.
100 Typically, 70% of a CDBG-DR grantee’s funds must satisfy the national objective associated with benefit to low-
and moderate-income (LMI) persons. For information on HUD’s LMI definitions, see https://www.hudexchange.info/
programs/cdbg/cdbg-low-moderate-income-data/.
101 42 U.S.C. §§5301 et seq., as interpreted by HUD at 24 C.F.R. §570.200 and the HUD Guide to National Objectives
and Eligible Activities for CDBG Entitlement Communities.
102 For example, see HUD, “Allocations, Common Application, Waivers, and Alternative Requirements for 2017
Disaster Community Development Block Grant Disaster Recovery Grantees,” 83 Federal Register 5849, February 9,
(continued...)
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Policy Options and Considerations
Direct and Community-Level Assistance
Federal programs provide both direct business assistance (e.g., loans, direct payments) and
community-level assistance (e.g., grants to repair infrastructure) following natural disasters.
Congress may consider changing the amount and type of assistance provided through one or both
of these channels. Congress may also seek to review how aspects of both approaches to assistance
may be utilized to minimize the financial burden on businesses and facilitate the timely repair and
reconstruction of community assets.
Disparate Recovery and Underserved Communities
Different types of businesses experience disasters and recover from disasters at different rates and
some may face unique barriers to recovery.103 If Congress is interested in providing assistance to
businesses in underserved areas or to disadvantaged businesses, policymakers may consider
options to provide specialized credit or technical assistance for businesses based on criteria such
as size, age of the business, location, or other factors (e.g., micro, small, or large businesses; start-
ups or established firms; or businesses in economically distressed regions). If Congress is
interested in providing non-credit financial assistance (e.g., grants, direct payments) to certain
industries, sectors, or business types, it may consider policies like the direct payment programs
that are currently available to agricultural businesses. Alternatively, Congress may consider
options to provide additional assistance that is broadly available to all disaster-impacted
businesses, regardless of business characteristics, business location, or the extent of the disaster
impact.
Congress may also be interested in evaluating how federal business disaster assistance is accessed
and how the terms and use of federal programs may impact recovery outcomes based on business
characteristics, size, and location.104 Researchers note that there is limited research on loan
approval rates by business type and size, and limited research on why businesses decide to use
(or not use) certain federal loans once approved.
Congress may also consider whether privately funded infrastructure (e.g., utilities,
telecommunications) should be eligible for FEMA assistance in order to facilitate business
recovery, particularly for infrastructure damage in underserved communities.
Timing and Delivery of Federal Assistance Programs
Accountability and timeliness of disaster assistance have been longstanding concerns for
Congress. On the one hand, instances of waste, fraud and abuse often increase when assistance is
provided quickly. On the other hand, applying measures to verify the legitimacy of assistance
claims delays recovery. To this end, Congress could investigate how federal business disaster

2018; and HUD, “Allocations for Community Development Block Grant Disaster Recovery and Implementation of the
CDBG-DR Consolidated Waivers and Alternative Requirements Notice,” 87 Federal Register 31656, May 24, 2022.
103 Maria Watson, “Disaster Assistance Winners and Losers,” Journal of the American Planning Association, vol. 88,
no. 3 (2022), p. 305, https://doi.org/10.1080/01944363.2021.1980086; and Simon A. Andrew, Vaswati Chatterjee, and
Gary Webb, “Disasters and the Private Sector: Impact of Extreme Events, Preparedness, and Contribution to Disaster
Risk Reduction,” September 15, 2022, pp. 5-6, https://doi.org/10.1093/acrefore/9780199389407.013.202.
104 Yang Zhang et al., “Vulnerability of Community Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1
(2009), pp. 38-57, https://doi.org/10.1111/j.1467-7717.2008.01061.x.
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assistance programs are implemented following disasters, including the timeliness of assistance
and to what extent timeliness affects business recovery outcomes.
Some researchers cite the overall application process and loan requirements as barriers to
applying and receiving business disaster recovery loans from federal programs following certain
disasters.105 In response to these concerns, Congress may evaluate options for enhanced delivery
and coordination of federal programs or additional ways to integrate federal assistance with state,
local, and regional entities.
If Congress favors an expanded federal role in disaster preparation and resiliency planning (i.e.,
efforts that take place in anticipation of future natural disasters), then it may also seek to change
the scope and timing of existing disaster preparation efforts. For instance, experts note that
emergency planning and disaster awareness campaigns are primarily designed to reach
individuals and households.106 Researchers suggest that such programs could adapt their outreach
and assistance activities to increase messaging to and engagement with businesses.107
SBA: Stafford Act Declarations and Designations
Under current laws, SBA disaster loans are triggered by a “declaration” either pursuant to the
Stafford Act, or pursuant to the Small Business Act. The type (or category) of declaration
determines what types of federal assistance are made available. Declarations are a necessary, but
not sufficient condition for federal disaster assistance to businesses. The types of assistance made
available are further influenced by the “designations” contained within the declaration.108
In the case of a major disaster declaration under the Stafford Act, if IA is designated, then SBA
physical disaster loans and EIDLs are made available to eligible businesses.109 If PA is
designated, then only private nonprofit organizations are eligible for SBA physical disaster loans
and EIDLs. In other words, most private businesses are not able to obtain SBA physical disaster
loans and EIDLs under a PA-only major disaster declaration.
FEMA uses “factors” to evaluate damages and make IA and PA recommendations to the President
(a full description of the factors can be located in Appendix B). IA factors include home and
personal property damages, the availability of temporary housing, and the percentage of affected
applicants with insurance. The IA factors do not include business damage.
Some may question the relevance of the IA designation for business assistance because the factors
used to determine IA do not evaluate business damages or economic loss. For example, it is
conceivable that an incident could cause significant damage to public infrastructure and

105 Yang Zhang et al., “Vulnerability of Community Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1
(2009), pp. 38-57, https://doi.org/10.1111/j.1467-7717.2008.01061.x; and Christy M. Corey and Elizabeth A. Deitch,
“Factors Affecting Business Recovery Immediately After Hurricane Katrina,” Journal of Contingencies and Crisis
Management, vol. 19, no. 3 (September 2011), p. 172.
106 Yang Zhang et al., “Vulnerability of Community Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1
(2009), p. 52, https://doi.org/10.1111/j.1467-7717.2008.01061.x; and Maria I. Marshall and Holly L. Schrank, “Small
Business Disaster Recovery: A Research Framework,” Natural Hazards, vol. 72 (2014), p. 613, https://doi.org/
10.1007/s11069-013-1025-z.
107 Yang Zhang et al., “Vulnerability of Community Businesses to Environmental Disasters,” Disasters, vol. 33, issue 1
(2009), p. 52, https://doi.org/10.1111/j.1467-7717.2008.01061.x; and W.L. Waugh, Jr., “Terrorism as Hazard and
Disaster,” in Handbook on Disaster Research, 2nd Ed., eds. Havidán Rodríguez, William Donner, Joseph E. Trainor
(Cham, Switzerland: Springer International, 2018), p. 140.
108 See Appendix A for a description of the designations, including what types of loans are made available under the
designation.
109 SBA home disaster loans would also be available to individuals and households.
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businesses but not to households. Consequently, businesses could be denied assistance because it
was determined that the lack of (or insufficient) damage to residences did not warrant assistance
to individuals and households.
A state governor also may request a disaster declaration from the SBA Administrator. The SBA
declaration could provide assistance to PA-only designated areas and/or areas that did not receive
a designation under a Stafford Act major disaster declaration. A secondary request, however, may
increase the time it takes to provide federal assistance to businesses.
If designations are a concern, Congress could consider making businesses eligible for SBA
disaster assistance under a PA-only designation. An alternative policy option might be a “business
designation” that evaluates damages to businesses to determine whether businesses located in the
declared area should be eligible for SBA disaster assistance. The business designation could use a
separate set of factors or criteria similar to the ones FEMA currently uses to evaluate declaration
requests and make IA and PA recommendations. This could align the designation with damages
that are specific to small businesses.
USDA Ad Hoc Assistance
Although not exclusively noted in this report, Congress has provided over $19 billion in
supplemental funding to ad hoc disaster assistance initiatives for natural disaster-related
agricultural losses since 2018. This supplemental funding follows several changes that Congress
made in the past 20 years to authorize permanent disaster assistance programs and expand
federally supported insurance programs such as the Federal Crop Insurance Program and the
Noninsured Crop Disaster Assistance Program (NAP), to reduce the need for ad hoc disaster
assistance.110 Following enactment of the Food, Conservation, and Energy Act of 2008 (2008
farm bill, P.L. 110-246), Congress appropriated little in the way of supplemental disaster
assistance for agriculture. This changed in 2018, when Congress authorized supplemental
appropriations for additional production losses in 2017 not previously covered by crop insurance
or NAP.111 Congress subsequently appropriated additional supplemental funding for natural
disaster-related losses in 2018 through 2023.112
With the resurgence of ad hoc disaster assistance, Congress might reassess the effectiveness of the
permanent disaster assistance programs, as well as debate the federal government’s role in
responding to natural disaster-related losses for an industry that is acutely influenced by natural
disasters and fluctuations in weather.113 In addition to covering losses beyond what may be
covered by crop insurance and NAP, the ad hoc programs cover losses not covered by other
permanent programs. This may cause some to question whether the permanent disaster assistance
programs could or should be expanded to cover losses or events not currently covered (e.g., on-
farm storage losses). Also, by covering the losses of farmers and livestock owners who chose not
to purchase insurance, Congress may consider whether ad hoc assistance creates a potential
disincentive for future participation in insurance programs.

110 For additional discussion, see CRS Report RS21212, Agricultural Disaster Assistance, by Megan Stubbs.
111 Bipartisan Budget Act of 2018 (P.L. 115-123, Title I). For additional information, see CRS In Focus IF11539,
Wildfires and Hurricanes Indemnity Program (WHIP), by Megan Stubbs.
112 FY2019 supplemental appropriation (P.L. 116-20, Title I), FY2020 Further Consolidated Appropriations Act (P.L.
116-94, Division B, §791), Disaster Relief Supplemental Appropriations Act of 2022 (P.L. 117-43, Division B, Title I),
and Disaster Relief Supplemental Appropriations Act of 2023 (P.L. 117-328, Division N, Title I).
113 For additional discussion, see CRS In Focus IF12101, Farm Bill Primer: Disaster Assistance, by Megan Stubbs; and
CRS Report R47057, Preparing for the Next Farm Bill, coordinated by Genevieve K. Croft.
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By nature, ad hoc assistance programs are not permanent, generally requiring USDA to issue
program rules and requirements upon passage of each new extension or on being amended, which
has resulted in payment delays. The supplemental appropriations of recent years also included
individual provisions targeting specific losses or events, which USDA administers through
multiple subprograms that may create additional complexities for implementation and
participation.
Concluding Observations
Congress considers businesses to be valuable to the national and regional economies for their
roles as employers and as contributors of goods, services, and tax revenues. These roles and
contributions may be disrupted by natural disasters, and these disruptions may impact national
and regional economies. In the process of recovering from natural disaster events, businesses
experience different types of barriers to recovery based on their size, location, sector, and other
factors. The process may involve multiple sources of public and private assistance and the
recovery time frame may vary from months to years.
Considering the high rate of business failures within two years after being struck by a disaster,
many in Congress have expressed a continued interest in facilitating post-disaster recovery.
Congress has authorized federal assistance for businesses through direct and indirect programs.
Through direct assistance, federal programs may cover some uninsured and underinsured losses
at the firm-level. Through indirect assistance, federal programs may fund expenses to repair
public infrastructure or restore services at the community-level. Direct assistance to businesses is
generally the quickest form of assistance. In the case of SBA, it generally takes two to three
weeks to get a disaster loan after completing the application.114 Indirect assistance generally takes
longer to implement, due to the nature of reconstruction that may involve one or more
telecommunications, commerce, trade, or transportation systems.
Policymakers may seek to review aspects of federal business recovery assistance in order to
address specific barriers to recovery as well as barriers to accessing assistance. As the frequency
and severity of disasters increase, Congress may seek to review the level of assistance that is
available and potential gaps or unmet, industry-specific challenges. In considering policies to
address recovery challenges and facilitate business recovery efforts, Congress may seek to review
aspects of individual programs, as well as how programs may or may not be integrated across
federal agencies and different levels of government. If Congress considers continued support for
federal business assistance, it may seek to evaluate aspects of such programs and determine
which objectives to prioritize.

114 Small Business Administration, Three Steps to SBA Disaster Assistance Loans,
https://disasterloanassistance.sba.gov/ela/file-asset/Three_Step_Process_SBA_Disaster_Loa. For more information
about disaster assistance applications, see CRS Report R45238, FEMA and SBA Disaster Assistance for Individuals
and Households: Application Processes, Determinations, and Appeals, by Bruce R. Lindsay and Elizabeth M. Webster.
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Appendix A. Declarations, Designations, and
Determinations
SBA Disaster Loan Eligibility Through Stafford Act and SBA
Declarations
There are seven types of declarations authorized by the Stafford Act115 and the Small Business
Act that put the SBA Disaster Loan Program into effect. The type of declaration may determine
the availability of certain types of loans, but it does not impact loan terms or loan caps. The
applicant must be located in the declared disaster area to be eligible for SBA disaster
assistance.116
The SBA Disaster Loan Program becomes available when
1. The President issues a major disaster declaration and authorizes both Individual
Assistance (IA) and Public Assistance (PA) under the authority of the Stafford
Act.117 When the President issues such a declaration, all types of SBA home and
business disaster loans become available to businesses, nonprofit organizations,
and individuals and households.118
2. The President makes a major disaster declaration that only provides the state, or
certain areas of the state with PA.119 This type of declaration is often referred to
as a “PA-only” declaration. If the President issues a PA-only declaration, a
private nonprofit entity that provides noncritical services to the disaster area may
be eligible for an SBA Physical Disaster loan or EIDL.120 PA-only declarations
do not provide SBA disaster loans to businesses.
3. The SBA Administrator issues an economic injury disaster declaration in
response to a determination of an emergency involving federal primary

115 For more information about Stafford Act declarations, see CRS Report R43784, FEMA’s Disaster Declaration
Process: A Primer, by Bruce R. Lindsay. For an overview of FEMA disaster assistance, see CRS Video WVB00386,
2021 Hurricane and Disaster Seasons: FEMA Disaster Assistance Overview and Policy Considerations: Part 1, by
Diane P. Horn et al.
116 Counties or other political subdivisions contiguous with the disaster area are also eligible for SBA disaster
assistance.
117 Administered by FEMA, Individual Assistance (IA) includes various forms of help for families and individuals
following a disaster event. IA authorized by the Stafford Act can include housing assistance, disaster unemployment
assistance, crisis counseling, and other programs intended to address people’s needs. For more information about
FEMA’s IA program, see CRS In Focus IF11298, A Brief Overview of FEMA’s Individual Assistance Program, by
Elizabeth M. Webster.
118 For more information about Individual Assistance, see CRS Report R46014, FEMA Individual Assistance
Programs: An Overview, by Elizabeth M. Webster. For more information about Public Assistance, see CRS Report
R46749, FEMA’s Public Assistance Program: A Primer and Considerations for Congress, by Erica A. Lee.
119 Public Assistance (PA) provides various categories of assistance to state and local governments and nonprofit
organizations. Principally, PA covers the repair or replacement of infrastructure (roads, bridges, public buildings, etc.),
but it also includes debris removal and emergency protective measures, which cover additional costs incurred by local
public safety groups through their actions in responding to the disaster. FEMA’s PA program provides assistance only
to public and nonprofit entities. For more information on FEMA’s PA program, see CRS In Focus IF11529, A Brief
Overview of FEMA’s Public Assistance Program, by Erica A. Lee.
120 In order to receive FEMA grant assistance, these entities must first have applied for an SBA disaster loan and
deemed ineligible or received the maximum amount of assistance from SBA before seeking grant assistance from
FEMA.
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responsibility by the President.121 EIDL becomes available to nonprofit
organizations in the declared disaster areas when the SBA Administrator issues
this type of declaration. Similar to a PA-only declaration, SBA disaster loans are
not provided to businesses under this type of declaration.
4. The SBA Administrator issues a physical disaster declaration in response to a
gubernatorial request for assistance.122 When the SBA Administrator issues this
type of declaration, SBA disaster loans become available to eligible businesses,
nonprofit organizations, and individuals and households.
5. The SBA Administrator issues an EIDL declaration based on the determination of
a natural disaster by the Secretary of Agriculture.123 These loans are available to
eligible small businesses, small agricultural cooperatives, and most private
nonprofit organizations. Additionally, the SBA administrator may issue a
declaration based on the determination of the Secretary of Commerce that a
fishery resource disaster or commercial fishery failure has occurred.124
6. The SBA Administrator issues an EIDL declaration when SBA receives a
certification from a state governor that at least five small businesses have
suffered substantial economic injury as a result of a disaster. This declaration is
offered only when other viable forms of financial assistance are unavailable.
Small agricultural cooperatives and most private nonprofit organizations are
eligible for SBA disaster loans when the SBA Administrator issues an EIDL
declaration.
7. The SBA Administrator issues a physical disaster declaration in a rural area (rural
disaster declaration) upon request from the state governor or the chief executive
of the Indian tribal government in which the rural area is located.125 When the
SBA Administrator issues this type of declaration, SBA disaster loans become
available to eligible businesses, nonprofit organizations, and individuals and
households.

121 Section 501(b) authorizes the President to issue an emergency declaration for incidents involving federal primary
responsibility. The authority to issue this type of declaration is rare. Examples of Section 501(b) declarations include
the Coronavirus Disease 2019 (COVID-19) pandemic, the loss of the Space Shuttle Columbia (emergency declarations
were issued for Louisiana and Texas), the 9/11 terrorist attacks on the Pentagon, and the bombing of the Alfred P.
Murrah Federal Building in Oklahoma City, OK.
122 The criteria used to determine whether to issue a declaration include a minimum amount of uninsured physical
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(3)(ii) and 13 C.F.R.
§123.3(3)(iii).
123 13 C.F.R. §123.3(4).
124 15 U.S.C. §632(k)(1).
125 Rural area means any county or other political subdivision of a state, the District of Columbia, or a territory or
possession of the United States that is designated as a rural area by the Bureau of the Census. The following conditions
must be met for this type of declaration: (1) the President has declared a major disaster for the rural area, but has not
authorized individual assistance; and (2) any home, small business concern, private nonprofit organization, or small
agricultural cooperative in the rural area has incurred significant damage. Significant damage means uninsured losses
of 40% or more of the estimated fair replacement value or pre-disaster fair market value of the damaged property,
whichever is lower.
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USDA’s Disaster Designation Process
The Secretary of Agriculture has authority to designate counties as disaster areas separate and
apart from Stafford Act requirements.126 USDA secretarial disaster designations are common and
have included most counties in the United States in recent years. For example, in the 2022 crop
year, 2,054 primary and contiguous counties received a disaster designation for at least one crop
disaster loss (see Figure 1).
A USDA secretarial disaster designation makes producers in the designated county and
contiguous counties eligible for emergency farm loans. In addition, other ad hoc disaster
assistance programs at USDA have historically been triggered by disaster designations.
With the exception of drought, the USDA secretarial disaster designation process is as follows:
• A written request is made to the Secretary of Agriculture by the governor, Indian
Tribal Council leader, or FSA state executive director within three months of the
ending date of the disaster.
• The FSA county office assembles required agricultural loss information within
the county.
• The FSA County Emergency Board reviews the loss information and determines
if 30% production loss of at least one crop occurred within the county. The
County Emergency Board can then either recommend, defer, or reject the request
for designation.
• If recommended by the County Emergency Board, the FSA State Emergency
Board reviews the request and determines if a qualifying natural disaster and
related losses have occurred. The State Emergency Board can either recommend
or reject the request for designation.
• If recommended by the State Emergency Board the request is summitted to the
FSA Administrator where it is reviewed and sent to the Secretary for either
approval or disapproval of the disaster area designation.
DOC Fishery Disaster Determinations
MSA gives general authority to the Secretary “to determine the existence, extent, and beginning
and end dates of a fishery resource disaster.”127 The Secretary of Commerce may initiate—or be
asked to initiate by request—a review to determine whether a fishery resource disaster has
occurred in response to presumed effects of a particular event or allowable cause on a given
fishery.128 A request for a fishery resource disaster determination can be made by the governor of
an affected state, an official resolution of an Indian tribe, or by any other comparable elected or
politically appointed representative as determined by the Secretary.129

126 Regulations governing USDA’s disaster designation are issued at 7 C.F.R. §759.
127 16 U.S.C. §1861a(a)(2)(A).
128 16 U.S.C. §1861a(a)(1)(A) defines an allowable cause as meaning “a natural cause, discrete anthropogenic cause, or
undetermined cause, including a cause that occurred not more than five years prior to the date of a request for a fishery
resource disaster determination that affected such applicable fishery.”
129 16 U.S.C. §1861a(a)(3)(A)(i).
A request letter is to contain a clear description of the affected fishery(s), including identification of all fish stocks,
whether the fishery is federal, non-federal, or both, and the geographical boundaries of the fishery. The letter should
(continued...)
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The Secretary may make a determination about whether a fishery resource disaster has occurred
using information provided by the requester, or collected and analyzed by the Secretary. A
determination is made based on 12-month revenue loss thresholds specified in the MSA for a
commercial fishery failure, serious disruption to that fishery, or harm incurred due to a fishery
resource disaster.130 A commercial fishery failure occurs when commerce in, or revenues from
commerce in, the fishery materially decreases or is markedly weakened due to a fishery resource
disaster, and results in economic hardship to those engaged in the fishery.131 Losses greater than
80% over that 12-month timeframe may result in a positive determination that a fishery resource
disaster has occurred. Losses between 35% and 80% are evaluated to determine whether
economic impacts were severe enough that a fishery resource disaster has occurred, while losses
less than 35% are not eligible for that determination.132A fishery subject to overfishing in any of
the three years preceding the date of a determination is not eligible for a determination of whether
a fishery resource disaster has occurred unless the Secretary determines that overfishing was not a
contributing factor to the fishery resource disaster.133 Congress directed the Secretary to use the
best scientific information available, in consultation with affected fishing communities, states, or
federally recognized Indian tribes.134

include information on causes and impacts needed to support a finding of a fishery resource disaster. It additionally
should contain available fishery-related economic information, which may include an analysis of landings data,
revenue, the number of participants involved, and the number and type of jobs and persons impacted (e.g., fishers,
charter fishing operators, subsistence users, fish processors, and owners of related fishery infrastructure or businesses
affected by the disaster). Examples of owners of a related fishery infrastructure or business in the FRDIA (P.L. 117-
328) include a marina operator, recreational fishing equipment retailer, or charter, headboat, or tender vessel owner,
operator, or crew. See 16 U.S.C. §1861a(a)(3)(B).
As reflected in the NOAA Policy on Disaster Assistance (last updated December 2021, and to be reviewed in October
2023), the responsibility for providing interim responses to fishery disaster determination requests falls to the Assistant
Administrator of the NOAA National Marine Fisheries Service (NMFS; also known as “NOAA Fisheries”). See Kelly
Denit, Policy on Disaster Assistance under Magnuson-Stevens Act 312(A) and 315 and Interjurisdictional Fisheries
Act 308(B) and 308(D), National Oceanic and Atmospheric Administration (NOAA), National Marine Fisheries
Service (NMFS), December 20, 2021, https://media.fisheries.noaa.gov/2021-12/01-
122%20Policy%20on%20Disaster%20Assistance_Update_0.pdf. Hereinafter Denit, 2021.
130 The FRDIA defines 12-month revenue loss as meaning, “the percentage reduction, as applicable, in commercial,
charter, headboat, or processor revenue for the affected fishery for the 12 months during which the fishery resource
disaster occurred, when compared to average annual revenue in the most recent 5 years when no fishery resource
disaster occurred or equivalent for stocks with cyclical life histories.”
131 Denit, 2021.
132 16 U.S.C. §1861a(a)(5)(B)(i).
133 16 U.S.C. §1861a(a)(5)(C).
134 16 U.S.C. §1861a(a)(4)(B).
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