Hurricane damage repair money: FEMA, SBA disaster loans and CDBG-DR, step by step
If a hurricane damaged your home in Puerto Rico, there are three main sources of help: FEMA, low-interest loans from the SBA, and CDBG-DR funds managed by the Departamento de la Vivienda (Puerto Rico's Housing Department). This guide walks you through how to access each one, step by step, with no promises about specific results.
Key takeaways
- Register with FEMA as soon as possible and before the official disaster deadline.
- In Puerto Rico you can use sworn statements and other alternative documents if you don't have a deed.
- Don't turn down the SBA loan without first understanding how that could affect your eligibility for other FEMA aid.
- Make sure any contractor is licensed before you sign anything — post-disaster scams are common in Puerto Rico.
When a hurricane hits Puerto Rico and the federal government declares a disaster, aid programs open up that many families don't know about or aren't sure how to use. Here we explain the three main sources of money to repair your home.
Step 1: Register with FEMA
The first thing you need to do is register with the Federal Emergency Management Agency (FEMA) before the deadline for that specific disaster. You can do it three ways: - Online: DisasterAssistance.gov - Through the FEMA mobile app - By phone: 1-800-621-3362
FEMA's Individual Assistance program may cover temporary housing, basic home repairs, and loss of personal belongings. Keep in mind: FEMA is not designed to fully rebuild your home — it's meant to help make it livable again.
One very common problem in Puerto Rico is not having a deed. Many families lost aid after Hurricane Maria because they couldn't prove they owned or lived in their home. The good news is that FEMA now accepts alternative proof of ownership or occupancy, including sworn statements (declaraciones juradas). Save photos of the damage, receipts, letters from CRIM (Centro de Recaudacion de Ingresos Municipales — the local property tax agency), or any document that shows you live in or own that property.
Step 2: SBA Loans
After FEMA receives your application, they may refer you to the U.S. Small Business Administration (SBA). The SBA offers low-interest loans for homeowners and renters affected by disasters.
Some people hesitate to apply for a loan because they don't want debt. But here's something important: if you turn down the SBA loan without a valid reason, you could lose access to other FEMA aid. Apply, look at the terms, and if it's not right for you, you can choose not to accept it later. Rules can change, so always check directly with the SBA.
Step 3: CDBG-DR Funds Through the Departamento de la Vivienda
The Community Development Block Grant — Disaster Recovery program (CDBG-DR) is what funds longer-term rebuilding projects. In Puerto Rico, it's managed by the Departamento de la Vivienda (Puerto Rico's Housing Department). After Hurricane Maria, the R3 program (Reparacion, Reconstruccion o Relocalización — Repair, Reconstruction, or Relocation) was created under this fund.
This program focuses on low- and moderate-income families. It could cover major repairs or even full reconstruction if you qualify. Rules change with each disaster and funding cycle, so check with the Departamento de la Vivienda to find out which programs are currently open.
If You Have Insurance, Use It First
FEMA will not pay for something your insurance already covers. If you have a homeowner's policy or flood insurance through the National Flood Insurance Program (NFIP), you need to file your insurance claim first. Keep all your paperwork from that process.
Important Differences for Puerto Rico
Puerto Rico is not a state, but it does qualify for federal disaster declarations. However, it has historically faced extra barriers: property title problems, informal housing, and delays in getting federal funds distributed. Knowing these realities helps you prepare better and document your case more carefully.
Watch Out: Protect Yourself from Scams
After every disaster, unlicensed contractors show up, charge upfront, and then disappear. Always use contractors who are licensed through the Departamento de Estado (Puerto Rico's State Department). Check the official registry before signing any contract. People have also shown up asking to charge money to 'help you register' with FEMA. That service is free.
Questions About Taxes or Legal Issues?
If you have questions about whether aid affects your taxes or about property rights, talk to a CPA, an attorney, or call Servicios Legales de Puerto Rico (Puerto Rico Legal Services). MoneyFAQ does not provide legal or tax advice.
What This Is
Why This Matters
What This Means for You
What to Do Next
Related FAQs
Common questions about this topic, answered simply.
I don't have a deed for my home. Can I still apply for FEMA aid?
Yes, and this is very common in Puerto Rico. FEMA learned from the lessons of Hurricane Maria and now accepts alternative proof of ownership or occupancy, such as sworn statements (declaraciones juradas), letters from CRIM, utility bills, or account statements in your name. Gather as many documents as you can that show you live in that property. If you're not sure how to prepare a sworn statement, Servicios Legales de Puerto Rico can help guide you.
How is Puerto Rico different from the 50 states when it comes to disaster aid?
Puerto Rico qualifies for federal disaster declarations just like the states, but it has historically faced more obstacles: widespread property title problems, a higher share of informal housing, and significant delays in distributing federal funds like CDBG-DR. On top of that, certain funds may come with extra conditions set by Congress. It's important to learn about the specific rules for each disaster as it happens.
Do I have to accept the SBA loan if I'm offered one?
You don't have to accept it, but you do need to apply if FEMA refers you. If you turn down the loan without submitting an application, you could lose access to certain types of additional FEMA assistance. You can apply, review the terms, and then decide whether to accept it or not. Rules can change, so check directly with the SBA and FEMA for the process specific to your disaster.
What does the CDBG-DR program through the Departamento de la Vivienda cover, and how do I apply?
The CDBG-DR program, managed by the Departamento de la Vivienda de Puerto Rico (Puerto Rico's Housing Department), is aimed at low- and moderate-income families and can cover major repairs, full reconstruction, or even relocation in serious cases. After Hurricane Maria, the R3 program was set up under this fund. For the next disaster, specific programs will be announced by the Departamento de la Vivienda. You can visit their portal or call directly to find out if applications are open. Rules and availability change with each funding cycle.
How do I know if a contractor is trustworthy after a disaster?
Check that the contractor has an active license in the Departamento de Estado de Puerto Rico registry before hiring them. Ask for references and never pay the full amount upfront. The usual approach is a small deposit with the rest paid when the work is done. Be careful with people who show up without being called, offering work at very low prices or pressuring you to sign quickly. If you suspect fraud, you can call DACO (Departamento de Asuntos del Consumidor — Puerto Rico's consumer affairs agency) for guidance.
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