FEMA may provide Public Assistance (PA) funding to an eligible PNP that provides noncritical but essential services only if it has applied for a disaster loan from the SBA. When the PNP cannot accept the terms of the loan; and the SBA therefore denies the loan; such as where the PNP does not meet a collateral requirement; PA funding is limited to the costs that would not have otherwise been covered by the loan.The Applicant could not offer collateral for the SBA loan; therefore; its PA funding is limited to the costs the loan would not have covered.

PAPPG; at 46; 57-58.HeadnotesFEMA may provide Public Assistance (PA) funding to an eligible PNP that provides noncritical but essential services only if it has applied for a disaster loan from the SBA. When the PNP cannot accept the terms of the loan; and the SBA therefore denies the loan; such as where the PNP does not meet a collateral requirement; PA funding is limited to the costs that would not have otherwise been covered by the loan.The Applicant could not offer collateral for the SBA loan; therefore; its PA funding is limited to the costs the loan would not have covered.Conclusion