{
  "id": "R44553",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R44553",
  "active": true,
  "source": "EveryCRSReport.com",
  "versions": [
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      "source": "EveryCRSReport.com",
      "id": 587704,
      "date": "2016-07-01",
      "retrieved": "2020-01-02T15:39:46.673706",
      "title": "SBA and CDBG-DR Duplication of Benefits in the Administration of Disaster Assistance: Background, Policy Issues, and Options for Congress",
      "summary": "Numerous nonprofit, private, and governmental organizations provide a wide range of assistance after a disaster strikes. Section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (P.L. 93-288) requires federal agencies providing disaster assistance to ensure that individuals and businesses do not receive disaster assistance for losses for which they have already been compensated. Duplication of benefits occurs when compensation from multiple sources exceeds the need for a particular recovery purpose. Recipients are liable to the United States when the assistance duplicates benefits provided for the same purpose.\nThe combination of any type of disaster assistance can cause duplication. This report focuses on duplication of benefits between the Community Development Block Grant Disaster Recovery (CDBG-DR) grant program and the Small Business Administration (SBA) Disaster Loan Program. Key areas of congressional concern over the past decade with respect to the two programs include:\ndespite quality checks and audits, agencies continue to provide duplicative disaster assistance to individuals and businesses; \nduplication assessment and collection process costs often exceed the money recouped;\nthe execution of the required delivery sequence can be complex and confusing because a multitude of assistance sources can be difficult to coordinate and monitor;\nthe execution can also be complex and confusing because CDBG-DR is not listed in the Federal Emergency Management Agency\u2019s regulatory sequence procedures;\nbenefits stem from multiple authorities subject to different interpretations;\nfederal guidelines regarding the process that states may follow in an effort to minimize potential duplication of benefits in the awarding of CDBG-DR are advisory and are not mandated requirements. To some this gives states too much flexibility to determine who is eligible for CDBG-DR;\ndisaster victims are sometimes unaware that they received an improper payment and, in some cases, receive collection notices well after they had spent the money on recovery needs. \nEquity concerns also stem from the duplication of benefits. These include:\nthat CDBG-DR is not provided for all disasters. Consequently, some major disasters may benefit from CDBG-DR while others may not\u2014even if they have similar losses;\nin most cases, SBA disaster loans can be provided more quickly than financial assistance from a CDBG-DR grant. As a consequence, it is possible for some homeowners to receive an SBA disaster loan and later be deemed ineligible when applying for financial assistance from a CDBG-DR grant due to duplication of benefits requirements. To some, it may appear that homeowners who took initiative to repair and rebuild were unfairly penalized.\nThis report provides a brief description of the SBA Disaster Loan Program and CDBG-DR. It lists relevant authorities, and highlights policy considerations. The report also explores a number of policy options Congress might consider when addressing duplication of benefits issues related to SBA disaster loans and CDBG-DR. These policy options include\nrequiring FEMA to clarify the regulatory delivery sequence to help eliminate potential confusion;\nprohibiting SBA disaster loan recipients from receiving CDBG-DR assistance or developing other policy options so that CDBG-DR assistance is awarded uniformly;\nestablishing CDBG-DR assistance as a permanent disaster assistance program;\nreplacing suggested guidelines for the disbursal of CDBG-DR with requirements;\ninvestigating the use of a centralized database to identify duplication of benefits more effectively.\nThis report will be updated as events warrant.",
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      "typeId": "REPORTS",
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  "topics": [
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    "Economic Policy"
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}