None to date. See Appendix IV of the Catalog for a listing of addresses for FEMA's Regional Offices. The amount of the loan is based on the demonstrated need, and may not exceed 25 percent of the applicant's operating budget for the fiscal year in which the disaster occurs. The interest rate is the U.S. Treasury rate for 5- year maturities on the date the Promissory Note is executed. The term of the loan is usually 5 years, but may be extended.
Interest accrues on the funds as they are disbursed.
The Associate Director may cancel repayment of all or part of the loan if the revenues of the applicant in the 3 fiscal years following the fiscal year of the disaster are insufficient to meet the operating budget because of disaster related revenue losses and unreimbursed disaster related operating expenses. Funds are disbursed per the Schedule of Payments in the Promissory Note. The funds cannot be used to meet the nonfederal share of any Federal program, finance capital improvements, or repair or restore public facilities. FEMA may cancel repayment of all or part of the loan. Cancellation depends on the extent that revenues in the 3 full fiscal years following fiscal year of the major disaster are insufficient to meet the operating budget of the local government, as a result of the disaster, including additional disaster-related operating expenses.