Direct payments to reduce financial losses resulting from a natural disaster that causes production loss or prevents planting of crops grown commercially for food or fiber for which Federal crop insurance is not available. Coverage, comparable to that offered under the Federal Multi-Peril Crop Insurance Program, is available to individual farmers. Direct loans to local governments to offset the loss of tax or other revenues as a result of a major disaster. The local government must demonstrate a need to maintain local governmental functions such as police and fire protection, or water and sewer services. The NFIP reduces Federal disaster expenses and requires wise floodplain management practices.
Premium rates are generally lower than standard actuarial rates.
Businesses of any size are eligible. Nonprofit organizations, such as charities, churches, and private universities, are also eligible. Applicants must show the ability to repay all loans. Loan amounts may be increased by up to 20 percent for mitigation measures. Assistance is available only to applicants with credit unavailable elsewhere.