Vermont Disaster Relief Program Options: Recovery and Aid Guide

The Vermont disaster relief program landscape is currently defined by a mix of active state initiatives, pending federal appeals, and specific loan options for recent climate events. Following the intense, localized flooding in July and subsequent drought conditions, property owners must navigate a complex system to find the right financial support. Understanding the distinction between denied federal grants and active state-level aid is crucial for maximizing your recovery resources.

Key Takeaways

• Federal Appeal Status: The state filed a formal appeal on November 21 challenging the federal denial of a Major Disaster Declaration for the recent July flooding.
• Active SBA Aid: The Small Business Administration has issued a declaration for the September drought, opening applications for economic injury loans now.
• State Gap Funding: The Business Emergency Gap Assistance Program (BEGAP) serves as the primary state mechanism for covering physical damage costs not met by insurance.
• Legal Victory for Resilience: A recent court ruling on BRIC (Building Resilient Infrastructure and Communities) funding protects Vermont's access to future mitigation grants.
• Philanthropic Safety Net: The permanent David R. Coates Fund has replaced temporary pools to provide rapid cash assistance to individuals and towns.

Vermont Disaster Relief Program Update: The Federal Appeal

The immediate focus for many municipalities involves the aftermath of the July floods, specifically in the Northeast Kingdom. Although initial assessments showed significant damage, the Federal Emergency Management Agency (FEMA) denied the state's request for a Major Disaster Declaration in October.

In response, Governor Phil Scott submitted a formal appeal on November 21. This submission provides updated data showing actual damages to public infrastructure are nearly $4 million, double the initial estimate. The appeal emphasizes the cumulative economic strain of consecutive years of disasters on local towns.

If successful, this appeal would unlock:

• Public Assistance (PA): Reimbursement for 75% of costs related to debris removal and road repairs.
• Hazard Mitigation Funding: Grants to redesign culverts and bridges to withstand future storms.
• Retroactive Payments: Financial relief for towns that borrowed money to fund emergency repairs.

State-Funded Support: The BEGAP Mechanism

With federal public assistance currently in limbo for the recent flood, the Business Emergency Gap Assistance Program (BEGAP) serves as a critical financial bridge. Administered by the(https://accd.vermont.gov), this program assists businesses, nonprofits, and landlords who have suffered physical damage.

How BEGAP Works

Unlike loans, BEGAP awards are grants that typically do not require repayment. The program is designed to cover a percentage of "net uncovered damages"—costs that remain after insurance and other payouts are deducted.

• Target Audience: Businesses, farms, and nonprofits with physical property damage.
• Grant Calculation: Historically covers 30% of net uncovered damages, up to a cap (often $100,000 per entity).
• Application Requirements: Applicants must provide proof of damage, insurance adjuster reports, and tax returns.

Agricultural Considerations

Farms located in river valleys are often hit hardest. The state frequently sets aside a portion of BEGAP funds specifically for agricultural operations. Farmers should also utilize the Vermont Agency of Agriculture for resources on soil testing and feed replacement.

SBA Assistance: Drought and Economic Injury

While flood-related physical damage loans hang in the balance of the appeal, the U.S. Small Business Administration (SBA) has activated a separate relief avenue. A declaration was issued regarding the severe drought conditions that began in September.

Economic Injury Disaster Loans (EIDL)

This declaration makes low-interest working capital loans available to small businesses and private nonprofits in affected counties.

• Usage: Funds can pay for operating expenses, fixed debts, and payroll that could have been paid had the disaster not occurred.
• No Physical Damage Required: You do not need to show flood damage to qualify; the qualification is based on economic impact from the drought.
• Terms: Interest rates are competitive (e.g., ~4% for businesses), with repayment terms up to 30 years to keep monthly payments manageable.

Applications can be submitted directly through the(https://www.sba.gov). Crucially, these loans often feature a deferment period where no payments are due for the first 12 months.

Comparative Overview of Active Relief Channels

Tax Relief and Municipal Abatement

To prevent liquidity crises for survivors, state and local tax mechanisms have been adjusted.

Property Tax Abatement

Vermont state law allows municipal Boards of Abatement to grant property tax relief for homes that have suffered "substantial damage."

• Criteria: Typically requires a 50% loss of value or loss of habitability for 60 days or more.
• Reimbursement: The state provides a mechanism to reimburse towns for the education tax portion of these abatements, ensuring local schools do not lose funding.
• Process: Homeowners must apply directly to their town clerk or Board of Abatement.

State and Federal Tax Extensions

The(https://www.irs.gov) and Vermont Department of Taxes frequently extend filing deadlines for taxpayers in declared disaster areas.

• Federal Deadline: For eligible recent disasters, the IRS has postponed various tax filing and payment deadlines to February 2.
• Scope: This includes quarterly estimated income tax payments and quarterly payroll tax returns.
• Action: Residents should monitor official announcements to confirm if their specific county and disaster event qualifies for this automatic relief.

Resilience and Future Funding

The state is not just focused on repair, but on hardening infrastructure against future events. A significant legal victory on December 11 concerning the Building Resilient Infrastructure and Communities (BRIC) program has secured the state's access to billions in federal mitigation grants.

This ruling prevents the impoundment of appropriated funds, allowing Vermont to proceed with large-scale resilience projects.

• Floodplain Restoration: Projects to widen river corridors and allow safe water disbursement.
• Infrastructure Hardening: Upsizing culverts and elevating utilities in flood-prone downtowns like Montpelier and Barre.

Philanthropic Aid: The David R. Coates Fund

For immediate needs that government programs cannot address quickly, philanthropy plays a vital role. The Vermont Community Foundation (VCF) has transitioned its disaster response into a permanent vehicle: the David R. Coates Fund for Vermont Disaster Relief.

This fund provides agile resources to:

1. Long-Term Recovery Groups: Local committees that manage individual cases.
2. Gap Funding: Helping homeowners pay for mold remediation, heating systems, and appliances before other aid arrives.
3. Speed: Unlike federal aid, which can take months, these funds are designed to be deployed in days or weeks.

Donations and requests for assistance can be navigated through the Vermont Community Foundation website.

Frequently Asked Questions