FEMA Loan Interest Payment Relief Act

The FEMA Loan Interest Payment Relief Act requires FEMA to reimburse local governments and electric cooperatives for interest paid on qualifying disaster recovery loans. A qualifying loan must be used for FEMA-covered activities with at least 90% of proceeds dedicated to those purposes. Reimbursement covers the lesser of actual interest paid or what would have been paid at the prime interest rate, as defined by the Federal Reserve. This relief applies to interest accrued in the seven years preceding the bill's enactment.