Grants versus Loans? Your Opinion?

Here is an interesting question:

Do you think that the government should provide loans or grants to areas affected by flooding?

There are so many variables to consider here. For one you have to remember that the government doesn't have an endless stream of money. And also too the money that is being provided is coming from taxpayer dollars.

The government wants to provide a t0 / 50 split between government grants and loans. That is half the money would be provided in government grants and forgiveable loans and the other half would be repayable loans.

Of course to the individual or business that needs the money the answer would of course be to have the grant instead of the loan.

But remember just in this year alone we have seen a lot of flood-affected areas that have been declared a state of emergency which makes them eligible for federal funding. And thats not including areas affected in past years.

There have been claims by those applying for federal assistance that the process has been made too difficult or complicated to apply for. Other complaints include businesses being told that it would be much better for them if they applied for the loans instead of the grant programs. Understandably businesses would rather apply for the grants because on top of them having their businesses being affected by flooding they don't want to incur more debt by applying for a loan.

The government's side does raise some valid points though. You have to remember that each area eligible for federal assistance has to be (or should be) treated the same - meaning if one area is eligible for grants then any other area affected should also be eligible for grants - again - meaning a 50/50 split. There shouldn't just be one area that can get grants and then another area with the same problems only being eligible for loans.

However I have to be on the side of the possible applicants because if one's business has been devasted by flood-related weather if they don't get the money to be able to revive their business then they may not want to revive it and then that makes the economy in that area go down. It will mean loss of jobs and loss of income for that area.

But what do you think about this?

Remember that your opinion counts and while some people think that they don't - they really do.