Disaster Financial Assistance Arrangements (DFAA)

Who is eligible?

• Small businesses (with annual gross revenues up to $15 million, subject to specific conditions)
• Non-profit organizations
• Charities
• Community organizations

Who is not eligible

• Departments and federal crown corporations, as well as enterprises owned or operated by the federal government.
• Public enterprises or crown corporations that operate on a profit-making model (i.e., that distribute profits or surpluses to government shareholders), except for those providing drinking water and sanitary wastewater services.
• Organizations primarily engaged in the management or sale of alcohol, cannabis, electricity, or in telecommunications (e.g., state alcohol or electricity companies, public telecommunications companies).
• Businesses or entities for which damages or losses are insurable (when adequate insurance coverage for the hazard is available and accessible in the region).
• Seasonal, recreational, or non-primary use properties (for businesses that manage seasonal or recreational accommodations, unless full-time rental is the main and permanent function of the business).

Eligible expenses

• Repair or replacement of essential business assets damaged by a natural disaster, up to standard replacement value.
• Repair or reconstruction of structures essential to a small business or organization to restore safe, functional operation.
• Cleanup and debris removal from business premises required to restore safe access and functionality, including removal of hazardous disaster-related materials.
• Expenses for temporary rental of space or equipment to resume business operations while repairs are underway.
• Repair/replacement of equipment, stock, and assets critical for business continuity (including specialized industry-specific assets, such as fishing gear, feed, seed stock, or harvested agricultural products not insurable).
• Costs associated with damage and repair appraisals conducted by professionals (e.g., engineering assessments, site inspections).
• Temporary access, security, and site stabilization to enable start of repairs (e.g., temporary fencing, securing premises, shoring damaged structures).
• Financial and psychosocial counselling directly related to recovery from a disaster event.
• Essential outbuildings, protective assets, access routes, and landscaping necessary for safe and functional business operation.
• Expenses incurred for evacuation, displacement, transportation, accommodation, and meals required during evacuation orders impacting business premises.
• Relocation costs for damaged business premises, if relocation is a cost-effective solution to reduce disaster risk (with appropriate documentation and restrictions on future use of vacated land).
• Up to 15% additional funding for disaster resilience enhancements to “build back better” and reduce future risk, on top of direct repair/restoration costs. Eligible enhancements must adhere to recognized disaster resilience guidelines.

Eligible geographic areas

• Provinces and territories of Canada (provincial and territorial governments are the eligible applicants)

• The Disaster Risk Reduction Incentive allows provinces and territories to access additional federal funding based on pre-disaster risk reduction actions completed before the disaster occurred.
• Advance payments covering up to 30% of the federal share of estimated eligible costs are available early in a claim, based on risk assessment.
• There is a five-year timeframe to submit the final payment request, with the possibility to request extensions.
• A management control framework must be in place to ensure expenses are eligible and comply with the Guidelines and accounting practices.