The Department of State Treasurer (DST) has notified local governments of their second round of interest-free loans for Hurricane Helene relief. This round of Cashflow Loans uses the remaining $34.4M provided by the legislature in the Disaster Recovery Act of 2024.
Round 2 of the Cashflow Loans utilizes money set aside in February at the request of local governments who needed more time to assess damages and get their paperwork completed. Many local governments requested additional funding due the extent of their damages, ongoing cleanup and cashflow needs while seeking resources through more traditional means, like FEMA.
This loan program was created to help bridge the gap for communities who are waiting for federal dollars needed to help with rebuilding and cleanup efforts. Unlike traditional loans, local governments did not have to go through the complex process of applying for these - instead, DST was able to use the local government’s emergency request paperwork to calculate their loan needs for Round 1. The only step local governments had to take was to approve acceptance of the money.
DST announced the availability of Round 2 loan funding in a memo sent in May. That memo directed local governments who were interested in receiving additional funds to apply via DST’s website. Thirty-four units of local government applied for loans during this round. If approved by the local government, the loans would need to be repaid in five years with no additional interest being added.
“We have not forgotten about the ongoing needs in Western North Carolina,” said State Treasurer Brad Briner. “We are pleased to send more help to the communities in need as they are working to get their communities rebuilt.”
DST has worked in conjunction with the N.C. League of Municipalities and N.C. Association of County Commissioners to administer the loans.