Atlantic Highlands Receives $2.1 Million in Disaster Loans

Atlantic Highlands received $2.1 Million in community disaster loands through the Federal Emergency Management Agency, the agency announced Tuesday. 

Several New Jersey municipalities received a total of $29.7 million from the low-interest loan program, which was designed to help areas that suffered substantial revenue losses from a major disaster to perform their governmental functions, according to the release. 

In response to Sandy, Congress allocated additional funds to the Disaster Assistance Direct Loan Program Account. At the request of Gov. Chris Christie, FEMA activated the program in New Jersey.

“Community Disaster Loans are based on need to bridge the revenue gap so local governments are able to continue to operate after a disaster,” said FEMA Federal Coordinating Officer Gracia Szczech in the release. “Loans are for local government operating expenses such as salaries of police, firefighters and teachers while the community recovers.”

The loans cannot be used as a cost share for any federal grants or for capital projects.

The New Jersey communities currently receiving loans are:

• Borough of Atlantic Highlands, $2,108,876;
• Borough of Keansburg, $3,954,766;
• Borough of Little Silver, $1,829,324;
• Borough of Oceanport, $1,154,931;
• Toms River Township, $5,000,000;
• Borough of Sea Bright, $1,297,273; and
• Toms River Fire District, $1,550,078.

According to FEMA, loans cannot exceed 50 percent of a municipality’s operating budget for the year in which the disaster occurs. The maximum loan is $5 million and areas must demonstrate the need for assistance to perform government functions. The term is five years but can be extended to 10 years if the applicant chooses. Interest on the loans equals the rate for five-year maturities determined by the Secretary of the Treasury on the day the note is executed, according to the release.