re: Any benefit to not accepting FEMA money?

No. Many people are or will be offered a grant, which is not a loan. Folks who are denied a grant will be told about SBA Loan opportunities. In many instances, an Appeal process will get a grant opportunity if pursued. My advice is appeal appeal appeal.

But you'll be required to apply for SBA in order to appeal in those instances. But applying for the loan does not require you to accept it. They just want you to be in the pipeline and of course the FedGov would rather you pay them back over the alternative.

But no, FEMA aid does not always come in the form of a loan. Shelter at Home will be subsidized by the FedGov and be independent of any other FEMA aid homeowners in impacted areas may receive.