Helene Small Business Recovery Act
The Helene Small Business Recovery Act would let the President waive the Stafford Act’s general rule against duplicating benefits from multiple federal disaster programs, but only in narrowly defined cases. At the request of a governor or an affected person, business, or other entity, the President could grant a waiver if doing so serves the public interest and avoids waste, fraud, or abuse. The decision must be made within 45 days and would require consideration of FEMA’s recommendations (in consultation with relevant federal agencies), cost effectiveness, equity and good conscience, and other public policy factors. The bill also says that, when a waiver is granted, all federal assistance must be used toward the actual disaster loss, and no income threshold may bar eligibility. Importantly, the waiver would apply only to assistance related to major disasters declared in calendar years 2023 or 2024. The aim is to ease access to needed funds for small businesses and others recovering from those disasters, by allowing more flexible use of federal aid while maintaining safeguards against improper spending.
Key Points
- 1The President may waive the general prohibition on duplicative federal benefits under the Stafford Act upon request, if the waiver serves the public interest and prevents waste, fraud, or abuse.
- 2The decision on whether to grant a waiver must be made within 45 days after submission of the request.
- 3Considerations for granting a waiver include FEMA’s recommendations (in consultation with the administering agency), cost effectiveness, equity and good conscience, and other applicable public policy factors.
- 4No income threshold may be used to restrict eligibility for a waiver, and per-waiver funding must be used toward the disaster-related loss; a loan cannot be deemed a duplication of assistance.
- 5Applicability is limited to assistance for major disasters declared by the President that occurred in calendar years 2023 or 2024.