What is Emergency Cash Assistance?
Emergency cash assistance is a one-time cash grant given to individuals who are financially challenged following a crisis. These crises include but are not limited to natural disasters, loss of jobs and health problems. This financial aid can help take care of immediate needs until a permanent solution is found. It temporarily covers financial necessities, relieves stress and provides an opportunity to focus on recovery.
Where to Get Emergency Cash Assistance
In cases of emergency, cash assistance is often rendered through different programs, each specifically tailored to meet particular needs. Unlike loans, emergency cash assistance usually does not need to be repaid. Some of these programs include:
Government Programs
The government provides financial assistance to people during emergencies in the form of grants, subsidies, payment of medical bills, unemployment benefits, and many more. These government programs also help reduce the cost of housing and feeding needs to make them more affordable. Some of these programs are:
- Cash-for-work programs.
- Temporary cash assistance.
- Medical assistance program.
Nonprofit Organizations
Different eligibility requirements and modes of operations apply to different organizations offering cash assistance. Their end game remains putting cash in the hands of those who need it the most. These organizations offer trust funds and grants to people in critical need. Some of these nonprofit organizations are:
- Modest Needs.
- Adult Emergency Financial Assistance Grant.
- Impact Charitable.
- Army Emergency Relief.
- United Way’s 2-1-1.
- International Federation of Red Cross and Red Crescent Societies.
- SFRF Emergency Financial Assistance Grant.
Although there are many more organizations with great assistance programs, looking for the one that suits your particular needs is the best way to go.
Credit Union
This is, perhaps, the only program that requires you to be a member to qualify for emergency cash assistance. They are also mostly in the form of payback loans. If, for example, you lose your credit card and require liquid cash, your credit union might offer an emergency cash disbursement (ECD). Here are some credit union groups in the United States that offer cash assistance:
- Central One Credit Union.
- 5Point Credit Union.
- Hudson Valley Credit Union.
- American First Credit Union.
How to Get Emergency Cash Assistance
Depending on which cash assistance program you decide to use, applying for emergency aid is usually pretty simple and straightforward. Here are five major steps to take:
- The first step to take in any case is to analyze your situation and decide on which programs best suit your needs. Whatever your emergency is, there is a cash assistance program available for you.
- The next thing to do is to gather all necessary documents and proof of emergency. These might include identity cards, social security numbers, contract termination letters, medical reports or even news reports.
- Now that step two is complete, you need to contact the agency to which you’re applying. This enables you to know your options and their eligibility criteria. You will then be provided with an application form.
- Here is where you fill out the application form and file it with all the required documents. Some agencies might require you to be interviewed before deciding to consider your application.
- After fulfilling all necessary conditions, the fifth step requires you to wait while your application is being reviewed. This process usually doesn't take a lot of time but varies from agency to agency.
Pros and Cons of Emergency Cash Assistance
When considering whether or not to apply for emergency cash assistance, you must weigh the merits and demerits. Oftentimes, the pros far outweigh the cons. Depending on why you need it, the same might not apply in every situation. Here are the pros and cons to evaluate before getting emergency cash assistance.
Pros
Easy to get. Cash assistance is often easier to get because it's cheaper than other forms of assistance.
Flexible usage. You are able to choose exactly what you need to buy or spend the money on.
Quick disbursement. Cash assistance is usually quickly disbursed since it is needed during an emergency.
Privacy. Beneficiaries of emergency cash assistance still reserve their privacy. This reduces stigma.
Cons
Usage. They can be misused as there is no certain way of monitoring how the money is spent.
Availability. They are not available to just everyone.
Inflation. This is a major concern with emergency cash assistance as inflation can affect the value of money thereby reducing your purchasing power.
Final Notes
Anxiety about the future can sometimes impact your happiness. Knowing that there is a system, such as emergency cash assistance, in place to cushion the burden of any emergency that arises gives you a sense of relief.