Disaster Financial Assistance Arrangements (DFAA)

Who is eligible?

• Provincial governments
• Territorial governments

Who is not eligible

• Individuals and communities
• Businesses applying directly
• Non-profit organizations applying directly
• Charities applying directly
• Other organizations applying directly

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

• Canada

• Adherence to the program guidelines by the applicant province or territory.
• Submission of a complete application including a general description of the disaster, the period and geographical area concerned, as well as an initial cost estimate.
• Compliance with the application submission deadline (within six months following the end date of the disaster, unless an exception is granted by the federal government).
• Verification and validation of costs and activities through financial and non-financial reports, including audits if required by Public Safety Canada.
• Factual justification of the direct causal link between the incurred expenses and the eligible disaster.

• Public Safety Canada reviews the request and supporting information.
• The federal government decides whether to approve DFAA assistance.
• A contribution agreement is established before funding is provided.
• Advance, progress, and final payments are processed under the guidelines.
• Progress and final reporting are required.

• 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.