	Introduction

Individuals and households that suffer uninsured or underinsured losse s under a major disaster declaration typically apply for Individual Assistance (IA), administered by the Federal Emergency Management Agency (FEMA), and may also apply for disaster loans, administered by the Small Business Administration (SBA). This report opens with an overview of the two programs and a discussion about how declarations are used to put them into effect. The report also discusses their respective application processes and eligibility criteria used by FEMA and SBA to make grant and loan determinations, respectively. The report then describes the appeals process before concluding with policy observations and considerations. FEMA IA and the SBA Disaster Loan Program are interlaced to a certain degree. Functionally, SBA and FEMA have a computer matching agreement (CMA) to share real-time data on assistance provided to applicants. SBA and FEMA use the interface between their systems to identify potential duplication of benefits (DOB) and determine loan and grant eligibility. From an administrative perspective, eligibility and assistance from one source can impact eligibility and assistance from the other source. While the overlap between the two programs may have some benefits, it arguably also causes some confusion. Moreover, as some observers have pointed out, there are elements of the application process that are not entirely known or understood. For instance, Members have asked for clarification concerning the criteria used to determine eligibility for grants and/or loans, as well as how decisions are made with respect to whether an applicant is provided a grant, loan, or both. Others have questioned whether determinations are made on a case-by-case basis, or if the determination criteria are applied uniformly to all applicants seeking disaster assistance. Overview of Programs

The following sections provide descriptions of the SBA and FEMA programs that provide assistance to individuals and households. In many cases, disaster survivors find that they need assistance from both of these programs in addition to other sources of assistance including private insurance, state and local government assistance, and assistance from private voluntary organizations in order to fully recover. If Congress is concerned about the use of the CMA, it could investigate how it could be used in conjunction with other disaster assistance programs.
The Federal Emergency Management Agency's (FEMA) Individual Assistance (IA) program and the Small Business Administration's (SBA's) Disaster Loan Program are the federal government's two primary sources of financial assistance to help individuals and households recover and rebuild from a major disaster. In many cases, disaster survivors find that they need assistance from both of these programs in addition to other sources of assistance including private insurance, state and local government assistance, and assistance from private voluntary organizations.
Though FEMA IA and the SBA Disaster Loan Program are separate programs administered by different agencies, in many ways they are interconnected. SBA and FEMA share real-time data on disaster grant and loan approvals to identify potential duplication of benefits while providing individuals and households with federal assistance that can be used in conjunction with each other to meet recovery needs. The two programs are also interconnected in the way they are administered to determine loan and grant eligibility. Furthermore, eligibility and assistance from one source can affect eligibility and assistance from the other source.
It could be argued the overlap between the two programs provides an effective means to identify duplication and provide federal assistance; however, the overlap also causes some confusion. Some in Congress are concerned that elements of the application process are not entirely known. For instance, it is unclear to some what criteria are used to determine assistance eligibility as well as how decisions are made with respect to whether an applicant should be provided a grant or a loan (or both). It is also unclear whether FEMA and SBA determine eligibility on a case-by-case basis, or if eligibility criteria are applied uniformly.
This report provides an overview of the two programs including discussions about:
how declarations put the programs into effect; the application process for both programs; the criteria used by FEMA and the SBA to determine assistance; and the FEMA and SBA appeal processes.
The report concludes with policy observations and considerations for Congress.