Getting started.
How to use this toolkit, and what we mean by emergency financial preparedness.
The EFE initiative embeds financial stability strategies into local governments' existing emergency preparedness work.
The CFE Fund provides cities and counties with grants, technical assistance, and access to a learning community of other local governments. By helping residents prepare financially for emergencies, cities and counties can help mitigate disruptions during and after a disaster. Additional talking points here.
This toolkit is designed to help city and county staff bridge the gap between disaster readiness and financial preparedness.
For city and county staff, this means practical tools you can put to work right away. The materials and guidance are designed to fit within existing operations, promote existing programs and services, strengthen collaboration across emergency management, financial empowerment, and community partners, and reach the residents who need them most.
Emergency financial preparedness isn’t a single action.
It’s a set of financial steps that make households more resilient when emergency hits. Many of them are the same things people are already trying to do to reach and protect their goals: keep their money somewhere safe, build a cushion, protect or improve their credit, carry the right amount of insurance, protect their important documents, and avoid getting scammed.
Financial preparedness is a continuation of what residents already want — not a new ask.
That’s what makes it powerful to message: you’re building on goals residents already have, not adding one more thing to their list.
The actions below are common steps that make residents more resilient when disaster strikes – regardless of what types of emergencies are most common in your region.
| Action | Emergency preparedness significance |
|---|---|
| Avoid scams and fraud | After a disaster, predatory products and financial scams target affected communities (e.g., fake contractors who take a deposit and disappear, identity theft aimed at stealing assistance benefits, and imposters who pose as emergency assistance or charities and claim they can help for a fee). |
| Build credit | Low credit is the #1 reason SBA disaster loans are denied (46% of denials). SBA disaster loans are both personal (homeowner/renter) and small business. Good credit lets residents secure low-interest loans that can help them build back after a disaster. |
| Build emergency savings | Accessible money allows residents to pay for gas, buy food, or cover a hotel if they have to evacuate. Emergencies can also disrupt income sources, and without savings, the financial effects of an emergency can compound. |
| Get banked | Disaster relief funds are received faster via direct deposit. Without a bank or credit union account, receiving aid can take weeks. Banking accounts offer a secure place to store and access money. Cash can be stolen and there’s no paper trail. A bank or credit union account offers protection against theft and hacking. |
| Rightsize insurance coverage | Homeowners are often underinsured for property damage. Renter’s insurance costs as little as $15/month and covers belongings, temporary housing, and liability. |
| Safeguard & digitize key documents | Physical documents and devices can be destroyed or inaccessible. Residents with accessible digital copies of key financial and identity documents are better equipped for FEMA applications, insurance claims, SBA loans, re-enrolling kids in new schools, medical decision-making, and maintaining public benefits. |
| Take advantage of local resilience programs | Many localities offer programs and grants to help protect residents’ homes from disaster (e.g., flood mitigation retrofits). |