What is the “duplication of benefits” issue?

Prior to the enactment of the Disaster Recovery Reform Act of 2018, victims of the Great Floods of 2016, that were approved for Small Business Administration loans were not able to make full use of grant funding available through the Restore Louisiana. The reason for this problem was that the full-approved amount of the loan was considered to be the same as a grant and therefore was treated as a duplication of benefits. Section 1210 of the Disaster Recovery Reform Act of 2018 prohibits a determination that a federal disaster relief loan is a duplication of assistance, if all federal assistance is used toward a loss suffered because of the major disaster or emergency. Therefore, a Small Business Administration loan will not count toward an applicant’s eligibility for Restore Louisiana recovery grants.