Applying for federal disaster assistance with a criminal record
At the outset, it is worth noting that the federal government delivers immediate emergency aid to victims of disasters through FEMA, which appears not to ask about criminal record in any of its programs. FEMA refers individuals to the SBA for longer term assistance for physical and economic injury, but will resume some aid if someone is ineligible for an SBA disaster loan. We don’t know how often this occurs, or what the process is for interagency coordination in such cases. A person will seek out an SBA disaster loan after the immediate stages of a disaster, to rebuild property or compensate for lost business income.
By statute and rule, SBA is barred from making 7(b) disaster loans to persons who have been “convicted, during the past year, of a felony during and in connection with a riot or civil disorder or other declared disaster.”
But the SBA’s operating policy on disaster loans is far broader than this narrow formal bar. In addition to barring assistance to anyone on parole or probation, the policy states the general principle that “It is not in the public interest for SBA to extend financial assistance to persons who are not of good character.” SOP 50 30 9 (3.6) (effective May 31, 2018) at p. 32.
Like its policy on business lending, the SBA’s disaster assistance policy measures a person’s “good character” exclusively in terms of whether or not they have a criminal record.
In general, SBA has a policy that it will not give loans to individuals or any businesses with an owner, or that has an associate, convicted of crimes of “moral turpitude.” Moral turpitude is a term that is frequently used but rarely defined in the law. A crime of moral turpitude is generally some sort of a violent felony or a crime involving some sort of fraudulent activity, which would include rape, murder, assault, etc., so it’s best for any ex-felon NOT to live in an area where natural disasters are more common because they will not be able to get a disaster relief loan.
It’s the same for personal and business loans too.
Write to your Congressmen and women about reforming these hated and unjust draconian sex offender laws that reduce us all to the legal status of Dred Scott in 1857. When one considers that our families and friends are also harmed by these laws-that’s a voting block numbering in the tens of millions.
I got home from prison in October 2017, one month after Irma cremated the carport of a house that I owned in Orlando (and which I was prohibited from living in because a day care center was “too close”). Because it wasn’t my personal residence FEMA wouldn’t help me, but referred me to SBA because a rental property is considered to be a business (which I admit makes sense). Sure enough, SBA turned me down because of this same “not of good character” rule.
It still infuriates me to think about how humiliating it was to be turned down on these grounds at a time when I was (and still am) doing everything I can to rebuild my life. Fortunately for me I didn’t suffer any damage this time, but these rules should all be abolished.
Who can we scream at?
I received SBA assistance after hurricane Irma without any questions about my background. No problems.