Contributors:
Kat Kizior | Manager, Risk Advisory
Paula Heller | Senior Associate, Risk Advisory
Cherry Bekaert sends its sincere condolences to all those impacted by the recent storms, including Hurricanes Helene and Milton. As hurricane season continues to devastate communities throughout the Southeast, the Firm’s grant management professionals have compiled a list of common questions and answers for organizations seeking assistance through the Federal Emergency Management Agency’s Public Assistance (PA) Program.
Pre-Application Information
Who is eligible for the FEMA Public Assistance Program?
FEMA provides public assistance grant funding to state, tribal, territorial and local governments, as well as specific types of nonprofit organizations. For private non-profit (PNP) eligibility information, go to the FEMA Fact Sheet.
Individuals may also apply for assistance under the Individuals and Households Program (IHP), which is a separate FEMA program.
How do I apply for FEMA’s Public Assistance Program?
There are three ways to apply for FEMA assistance:
- Calling FEMA Helpline at 1-800-621-3362
- Online by visiting disasterassistance.gov
- Downloading and applying on the FEMA Mobile App
There is also a direct portal for state and local governments, grantee.fema.gov.
Please note: private non-profits who use this site may need to take an additional step to get their public assistance access to the portal approved. If you cannot register or do not receive a “next steps” confirmation email from FEMA after the pre-application process, contact your state’s public assistance operations manager for guidance.
What are the initial steps to apply for FEMA assistance?
Establish your eligibility to apply for the FEMA PA Program by completing a pre-application. This pre-application must be submitted to FEMA within 30 days of the president approving a disaster declaration in your state. The pre-application alerts FEMA you are interested in receiving funds, and then this pre-application is sent to your state for review of eligibility. Next, the state will make a recommendation to FEMA, and FEMA will then have three days to issue a determination – either eligible or ineligible. If you are ineligible, FEMA must provide its reasoning for the determination.
Once your pre-application for assistance is approved, you will be assigned a program delivery manager (PDMG) within about seven days.
What information do I need to apply?
When you go to register your organization at FEMA’s PA portal grantee.fema.gov you will receive these instructions on the welcome page:
If you are applying as an individual, a for-profit business, or a tribal government, you will be redirected to another site. If you are a private non-profit, there is a list of documents you need to have scanned and electronically available to upload. You will have one hour to complete the pre-application.
We needed to begin recovery cleanup right away. How should we handle documenting this work?
Organizations must document the impact of the disaster, which should include photos of the damage, before beginning emergency work to clear debris and secure property. Start a list of all the initial damage observed, and then continue to add to this documentation as you notice more. Also, create a way for staff working outside their roles and responsibilities to document their time dedicated to cleanup. For maintenance and facility workers, document overtime worked. Ensure all personnel and supervisors sign off on the time you want to get reimbursed by FEMA.
For financial documentation, start a list with all the purchases made as part of the cleanup process, which can include fans, generators, rental equipment, cleaning supplies and contractors to mitigate hazards. Gather all receipts and store them in one centralized location. Also, have your finance department create a unique code in your chart of accounts to track expenses associated with the disaster. Make sure you capture any expense you incur that you would not have normally incurred in your day-to-day operations.
After Pre-Application Is Approved
What happens after FEMA determines that my organization is eligible?
Following the pre-application approval, you will be assigned a program delivery manager and enter the application phase. As an overview, you will organize damages into projects, define the scope of work and the costs of each project, and then submit the application for approval. Once the projects are approved by FEMA, you will then formally receive the public assistance grant as a federal obligation. If FEMA does not approve all your projects for assistance, you have the right to appeal.
What does a FEMA Program Delivery Manager do?
You will be assigned a program delivery manager (PDMG) approximately seven days after becoming eligible. This FEMA representative will work with you on all of your projects throughout the application process. An exploratory call with the PDMG launches the first stage in the application process. You will also have a recovery scoping meeting (RSM) with your PDMG after you have completed your impact survey to help build your application.
What are the different categories for FEMA PA?
The impact survey and your RSM will organize your damages and costs into two major categories: emergency work and permanent work.
For example, if you had to remove a tree that fell on a building and then replace a section of roofing, you would include those costs incurred in your application, but they would be in two different categories.
- Removing the tree (and putting a tarp on the damaged roof) would count as emergency work. Emergency work may consist of:
- Removing debris
- Securing property
- Remediating mold or mildew
- Making the workplace safe and sanitary for employees
- Permanent work may consist of performing larger restorations and repairs. In our example, this would be making repairs to the damaged roof.
Note that documentation is important for all projects covered under FEMA, so make it a priority to have a plan for managing documentation.
Basics of FEMA Coverage
How does FEMA assistance align with insurance coverage?
If a business has insurance that will cover some of the impacted damages, FEMA is able to cover about 75% of the deductible costs. For example, if a business has $100,000 in damages with 80% coverage, FEMA can cover roughly $15,000 of those out-of-pocket expenses. So, rather than paying the full $20,000 deductible, the business would be responsible for $5,000.
The challenge with storms like Hurricane Helene is that many businesses were not in a flood zone and did not have flood insurance. Additionally, all your property may not be covered by your insurance policy (e.g., fencing, tennis courts). Read your policy carefully, and then seek outside assistance to review it. There may be loss of profit, business interruption or other remediation clauses that are triggered when there is damage to insured property.
Are businesses reimbursed for employee compensation when the facility is unable to operate?
In Part 13, B.3 Allowable Costs on FEMA’s website, a list of allowable costs is provided. Recovering employee compensation for a closed facility can be tricky. Utilize the expertise of your program delivery manager to determine which costs are eligible to be covered.
Other assistance, such as an SBA Economic Injury Disaster Loan, can help recoup funds from lost income or wages.
Can FEMA funds be used to support services such as food distribution?
No, FEMA funds are only intended to cover the restoration of infrastructure and damaged facilities. Food preparation and distribution services are considered community service activities and may be funded through programs that are organized to deliver that type of relief.
Does FEMA provide external project managers for the repair and restoration process?
There are contractors who work specifically with the agency (e.g., engineers consulting on complex reconstruction projects), but you will need to find your own project manager if this is needed. FEMA does provide coverage for management costs, but you should work with your program delivery manager to ensure the specific costs you are considering incurring are allowable.
Regardless, make sure you have an internal team with a key point of contact to oversee your insurance claim and FEMA application. FEMA’s processes and procedures are deadline driven, so this step is critical even if you hire outside assistance.
Additional Information
Does FEMA work with other agencies to provide aid?
Yes, FEMA may refer you to the Small Business Administration (SBA) for a low-interest disaster loan. Businesses, homeowners, renters, and non-profits can apply for SBA loans which have numerous categories, including:
- Physical damage
- Mitigation assistance
- Economic injury
- Disaster loans
How long does it take to complete the entire FEMA PA process from start to closeout at the end?
The time it takes to complete the entire process varies based on the severity of damage, the costs of projects, and what categories you are pursuing with FEMA PA. That said, it can take several years to navigate the entire process. However, note that you will be able to seek reimbursement for larger projects as benchmarks are met and when individual projects are completed.
Are there any other resources you think might be helpful?
Yes, here are a few links that are very detailed:
Also check out podcast, “FEMA Disaster Assistance: Application Process Guide.”
Cherry Bekaert’s Grants Management team is equipped to help you navigate the FEMA Public Assistance application and aid process. Our grant lifecycle management assistance provides end-to-end solutions for federal and state funds management and compliance. Reach out to our experienced team today.
