24-02-2025
Majority of $100 million in state Helene loans from SB 382 being delivered
RALEIGH, N.C. (QUEEN CITY NEWS) — Most of the $100 million in interest-free loans for Hurricane Helene relief is in the process of being delivered to local governments, State Treasurer Brad Briner announced Monday.
The General Assembly created the $100 million cashflow loan program as part of the controversial Senate Bill 382, which passed in December. Its goal is to help local governments whose communities were devastated by Helene while they wait for federal money to arrive. Administration of the program was assigned to Department of State Treasurer.
The first round includes $74.5 million to be sent to 98 local governments in western North Carolina. The two highest recipients are Buncombe County ($8.4 million) and Chimney Rock Village ($7.7 million). Avery County is allotted for $1.9 million.
NC Governor Stein requests $20 billion in Helene recovery funds
'We had a big goal on a short deadline, and we are excited to announce that help is on the way,' Briner said in a statement. '(Head of Helene cashflow program) Jeff Poley and his team worked relentlessly to create the program from the bottom up, recognizing, as we all did, that the residents of Western North Carolina needed rapid resources to restore upended lives and rebuild neighborhoods.'
Poley, DST's director of Disaster Services and Rural Economic Development, said some municipalities already have their allocations in hand.
DST says a portion of the $100 million is being held because some local governments experienced hurricane loss and damage that makes completing the necessary documentation difficult. Recent winter storm closures compounded the problem.
'More loans will be issued in coming weeks as we continue to work through the unavoidable challenges,' Poley said.
The loans must be repaid within five years of initiation or by June 30, 2030, whichever is earlier.
The N.C. League of Municipalities, the N.C. Association of County Commissioners and the N.C. Department of Emergency Management assisted DST in the program.
'Cities and towns across Western North Carolina continue to face tremendous challenges rebuilding from the devastation wrought by Hurricane Helene, and many are dealing with financial hurdles as a result,' said Rose Vaughn Williams, North Carolina League of Municipalities executive director. 'Even as federal and other state resources are made available over time, municipalities have expenses that must be paid now to help residents recover.'
Under the cashflow loan program, local governments must provide damage assessments to the N.C. Department of Emergency Management, as detailed in an earlier memo. Those assessments are used to calculate loan amounts. The governing boards of impacted local governments need to vote to approve acceptance of the interest-free loans. Requests for loans from school districts are channeled through their county governments.
SB 382 allocates $227 million from the state's 'rainy day' fund to Helene relief. The bill also has been the subject of three lawsuits involving the stripping of certain powers from the state's top leaders.
A full list of local governments receiving the loans in this first round of payouts can be found here.
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