Disaster aid Q&A
What is a presidential disaster declaration?
A presidential disaster declaration is triggered when disaster damage is beyond the capabilities of the state and local governments, and federal assistance is needed.
The disaster declaration gives individuals and businesses access to federal programs ranging from low-interest loans to counseling.
Who qualifies for disaster help?
A person who owns a business or home, or works or lives in a county declared a major disaster area may qualify if he or she has sufficient property damage or loss and does not have sufficient insurance or other resources.
What about insurance? Can people who have insurance coverage still qualify for the federal programs?
Insurance coverage is determined first. If the insurance does not cover the losses, then the person or business may qualify for low-interest loans or direct grants.
How do low-interest loans fit in?
Small Business Administration disaster loans are the second line of defense, after insurance coverage. In fact, the SBA disaster loan program is the primary form of disaster assistance for many people. Often a homeowner will have to apply for a SBA loan before receiving any direct aid.
The current interest rate on these loans in Nebraska is 2.75 percent for businesses, 2.87 percent for homeowners and 3.75 percent for Farm Service Agency emergency loans.
What kinds of loans are available?
There are four basic types of disaster loans offered through the Small Business Administration and the Farm Service Agency.
n Home disaster loans to homeowners and renters to repair or replace damaged homes or personal property. Loans are available up to $200,000 for a primary residence and $40,000 for personal property, including renter loss.
n Business physical disaster loans to business owners to repair or replace damaged property including inventory and supplies. Loans are available up to $1.5 million for business property losses not fully compensated by insurance
n Economic injury disaster loans, supplying capital to small businesses and small agricultural cooperatives to assist them through recovery. Loans up to $1.5 million are available for small businesses that need funds for working capital.
This loan in combination with a property loss loan cannot exceed a total of $1.5 million.
n Loans up to $500,000 are available for farmers, ranchers and aquaculture operators to cover production and property losses. Agricultural operators also may qualify for FSA direct or guaranteed loans.
What kind of direct assistance is available for tornado victims? Will it help a family replace a demolished car or truck?
The entire array of federal programs is available to individuals in the four disaster-designated counties.
If a person's home is unlivable, he or she may qualify for temporary housing grants. Initial assistance is provided for up to three months for homeowners and at least one month for renters and may be extended.
Grants are available for home repairs and replacement of essential household items not covered by insurance to make damaged dwellings safe, sanitary and functional.
There are also grants to replace personal property and help meet medical, dental and transportation costs, funeral expenses and other serious disaster-related needs not covered by insurance or other federal, state and charitable aid programs.
The aid could cover replacement of an uninsured vehicle for a low-income individual.
Grants are the last line of defense available after insurance and loans. Grant assistance is limited to $25,000 per individual or household
How do you get this help?
You can call the toll-free number for information, (800) 621-FEMA, from 7 a.m. to 7 p.m., or go to the Disaster Center in Cortland, 530 Lincoln. The center is open from 9a.m. to 7 p.m. daily and will be open on Memorial Day.
Those who apply for aid through FEMA should expect to wait seven to 10 days from the time they apply for a FEMA housing inspector to assess the damage.
The inspector will then file a report, and a check should be issued seven to 10 days later.
Do people qualify for help based on their incomes?
Income does play a part in determining federal assistance. But the programs are very complicated, and each individual case is different. People living side by side on a street will have different factors and qualify for different programs.
FEMA workers through the toll-free registration number and at the Disaster Recovery Center will work with individuals to determine what assistance may be available to them.
Insurance coverage is the first factor considered, then the individual's or business' ability to repay a low-interest loan. Grants are the last resort.
Will the disaster programs cover all the losses?
FEMA is not supposed to be a cure-all. It is intended to help people get back on their feet, not to cover all the losses.
Are there any benefits if you become unemployed?
Special unemployment benefits are available for people not normally covered by the unemployment program, including self-employed workers and farm workers. The program is available to workers whose workplace was closed or is inaccessible because of the disaster. People who think they may be eligible should contact an unemployment insurance claims center at 458-2500 in Lincoln, (402) 829-2800 in Omaha or toll-free at (877) 725-9918 (for those outside the Lincoln and Omaha area).
What are the food stamp benefits?
People directly affected by tornadoes or flooding or who lost wages because of the storms may qualify for a month's worth of food stamps. Residents of southern Lancaster County, Gage, Saline and Cass counties can fill out applications at the Firth Reformed Church, 603 Russell in Firth. Beginning today the center will be open daily from 7 a.m. to 7 p.m., including Memorial Day weekend and Memorial Day.
Applicants must bring documentation to verify identity and residency.
Tuesday is the deadline to apply for disaster food stamp assistance, and some income guidelines will apply. Additional information is available from the state Office of Economic and Family Support at (402) 471-9325.
Are there special tax breaks for the losses?
Taxpayers may deduct losses if the losses exceed 10 percent of the adjusted gross income for the tax year by at least $100. In a federally declared disaster area, taxpayers may choose between two years for that deduction: the year the disaster occurred or the preceding tax year.
The IRS can expedite refunds for taxpayers in a federally declared disaster area, producing a quick source of cash that does not need to be repaid.
Sources:Government news releases, Web sites and Federal Emergency Management Agency public information specialists.
A presidential disaster declaration is triggered when disaster damage is beyond the capabilities of the state and local governments, and federal assistance is needed.
The disaster declaration gives individuals and businesses access to federal programs ranging from low-interest loans to counseling.
Who qualifies for disaster help?
A person who owns a business or home, or works or lives in a county declared a major disaster area may qualify if he or she has sufficient property damage or loss and does not have sufficient insurance or other resources.
What about insurance? Can people who have insurance coverage still qualify for the federal programs?
Insurance coverage is determined first. If the insurance does not cover the losses, then the person or business may qualify for low-interest loans or direct grants.
How do low-interest loans fit in?
Small Business Administration disaster loans are the second line of defense, after insurance coverage. In fact, the SBA disaster loan program is the primary form of disaster assistance for many people. Often a homeowner will have to apply for a SBA loan before receiving any direct aid.
The current interest rate on these loans in Nebraska is 2.75 percent for businesses, 2.87 percent for homeowners and 3.75 percent for Farm Service Agency emergency loans.
What kinds of loans are available?
There are four basic types of disaster loans offered through the Small Business Administration and the Farm Service Agency.
n Home disaster loans to homeowners and renters to repair or replace damaged homes or personal property. Loans are available up to $200,000 for a primary residence and $40,000 for personal property, including renter loss.
n Business physical disaster loans to business owners to repair or replace damaged property including inventory and supplies. Loans are available up to $1.5 million for business property losses not fully compensated by insurance
n Economic injury disaster loans, supplying capital to small businesses and small agricultural cooperatives to assist them through recovery. Loans up to $1.5 million are available for small businesses that need funds for working capital.
This loan in combination with a property loss loan cannot exceed a total of $1.5 million.
n Loans up to $500,000 are available for farmers, ranchers and aquaculture operators to cover production and property losses. Agricultural operators also may qualify for FSA direct or guaranteed loans.
What kind of direct assistance is available for tornado victims? Will it help a family replace a demolished car or truck?
The entire array of federal programs is available to individuals in the four disaster-designated counties.
If a person's home is unlivable, he or she may qualify for temporary housing grants. Initial assistance is provided for up to three months for homeowners and at least one month for renters and may be extended.
Grants are available for home repairs and replacement of essential household items not covered by insurance to make damaged dwellings safe, sanitary and functional.
There are also grants to replace personal property and help meet medical, dental and transportation costs, funeral expenses and other serious disaster-related needs not covered by insurance or other federal, state and charitable aid programs.
The aid could cover replacement of an uninsured vehicle for a low-income individual.
Grants are the last line of defense available after insurance and loans. Grant assistance is limited to $25,000 per individual or household
How do you get this help?
You can call the toll-free number for information, (800) 621-FEMA, from 7 a.m. to 7 p.m., or go to the Disaster Center in Cortland, 530 Lincoln. The center is open from 9a.m. to 7 p.m. daily and will be open on Memorial Day.
Those who apply for aid through FEMA should expect to wait seven to 10 days from the time they apply for a FEMA housing inspector to assess the damage.
The inspector will then file a report, and a check should be issued seven to 10 days later.
Do people qualify for help based on their incomes?
Income does play a part in determining federal assistance. But the programs are very complicated, and each individual case is different. People living side by side on a street will have different factors and qualify for different programs.
FEMA workers through the toll-free registration number and at the Disaster Recovery Center will work with individuals to determine what assistance may be available to them.
Insurance coverage is the first factor considered, then the individual's or business' ability to repay a low-interest loan. Grants are the last resort.
Will the disaster programs cover all the losses?
FEMA is not supposed to be a cure-all. It is intended to help people get back on their feet, not to cover all the losses.
Are there any benefits if you become unemployed?
Special unemployment benefits are available for people not normally covered by the unemployment program, including self-employed workers and farm workers. The program is available to workers whose workplace was closed or is inaccessible because of the disaster. People who think they may be eligible should contact an unemployment insurance claims center at 458-2500 in Lincoln, (402) 829-2800 in Omaha or toll-free at (877) 725-9918 (for those outside the Lincoln and Omaha area).
What are the food stamp benefits?
People directly affected by tornadoes or flooding or who lost wages because of the storms may qualify for a month's worth of food stamps. Residents of southern Lancaster County, Gage, Saline and Cass counties can fill out applications at the Firth Reformed Church, 603 Russell in Firth. Beginning today the center will be open daily from 7 a.m. to 7 p.m., including Memorial Day weekend and Memorial Day.
Applicants must bring documentation to verify identity and residency.
Tuesday is the deadline to apply for disaster food stamp assistance, and some income guidelines will apply. Additional information is available from the state Office of Economic and Family Support at (402) 471-9325.
Are there special tax breaks for the losses?
Taxpayers may deduct losses if the losses exceed 10 percent of the adjusted gross income for the tax year by at least $100. In a federally declared disaster area, taxpayers may choose between two years for that deduction: the year the disaster occurred or the preceding tax year.
The IRS can expedite refunds for taxpayers in a federally declared disaster area, producing a quick source of cash that does not need to be repaid.
Sources:Government news releases, Web sites and Federal Emergency Management Agency public information specialists.
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