FEMA Loan Interest Payment Relief Act

Bill: 116-hr-8701
Sponsor: full_name: Rep. Dunn, Neal P. [R-FL-2]
Introduced: 2020-10-30
Policy area: Emergency Management
Subjects: Disaster relief and insurance

Government lending and loan guarantees

Interest, dividends, interest rates

Public utilities and utility rates

State and local finance

State and local government operations
Latest action: action_date: 2020-11-02
text: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.

Summaries:
action_date: 2020-10-30
action_desc: Introduced in House
text: <p><b>FEMA Loan Interest Payment Relief Act</b></p> <p>This bill directs the Federal Emergency Management Agency (FEMA) to reimburse local governments or electric cooperatives for interest expenses for loans pertaining to disaster relief.</p> <p>Any qualifying interest incurred by a local government or electric cooperative in the five years preceding this bill's enactment shall be treated as eligible for financial assistance for purposes of this bill.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 8701 IN THE HOUSE OF REPRESENTATIVES October 30, 2020 Mr. Dunn (for himself and Mr. Soto ) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure A BILL To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide for the authority to reimburse local governments or electric cooperatives for interest expenses, and for other purposes.

1. Short title This Act may be cited as the FEMA Loan Interest Payment Relief Act . 2. Reimbursement of interest payments related to public assistance (a) In general Title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 et seq.) is amended by adding at the end the following: 431. Reimbursement of interest payments related to public assistance (a) In general The President, acting through the Administrator of the Federal Emergency Management Agency, shall provide financial assistance to a local government or electric cooperative as reimbursement for qualifying interest. (b) Definitions In this section, the following definitions apply: (1) Qualifying interest The term qualifying interest means, with respect to a qualifying loan, the lesser of— (A) the actual interest paid to a lender for such qualifying loan; and (B) the interest that would have been paid to a lender if such qualifying loan had an interest rate equal to the prime rate most recently published on the Federal Reserve Statistical Release on selected interest rates. (2) Qualifying loan The term qualifying loan means a loan— (A) obtained by a local government or electric cooperative; and (B) of which not less than 90 percent of the proceeds are used to fund activities for which such local government or electric cooperative receives assistance under this Act after the date on which such loan is disbursed. . (b) Rule of applicability Any qualifying interest (as such term is defined in section 431 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as added by this Act) incurred by a local government or electric cooperative in the 5 years preceding the date of enactment of this Act shall be treated as eligible for financial assistance for purposes of such section.