The North Carolina Department of State Treasurer (DST) has begun delivering the first round of interest-free loans for Hurricane Helene relief to local governments, and more checks from that initial tranche are forthcoming soon, State Treasurer Brad Briner has announced.
The General Assembly created the $100 million cashflow loan program under the Disaster Recovery Act of 2024, which was passed Dec. 11, 2024. Its goal is to help local governments whose communities were devastated by Hurricane Helene while they wait for federal money to arrive. Administration of the program was assigned to DST.
“We had a big goal on a short deadline, and we are excited to announce that help is on the way,” Treasurer Briner said. “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 Director of Disaster Services and Rural Economic Development, said loans have been approved for 98 local governments totaling $73,499,999.98 as of Feb. 21 and some already have their allocations in hand. 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. Poley is working with the local governments to complete their applications on an extended deadline.
“More loans will be issued in coming weeks as we continue to work through the unavoidable challenges,” Poley said. He thanked the N.C. League of Municipalities, the N.C. Association of County Commissioners and the N.C. Department of Emergency Management for partnering with DST to get the program up and running.
“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. Even as federal and other state resources are made available over time, municipalities have expenses that must be paid now to help residents recover,” said Rose Vaughn Williams, North Carolina League of Municipalities executive director.
“This interest-free loan program, made possible by the General Assembly and Treasurer Briner, ultimately means that help is getting to residents more quickly and more efficiently, and that local governments have more of the resources that they need today. I want to personally thank Treasurer Briner and his office for their work and collaboration in this process,” Vaughn Williams said.
Philip Hise, mayor of Mitchell County’s largest municipality, is grateful for the $2.8 million cashflow loan that Spruce Pine is receiving.
“Our town has accumulated several million (dollars) in debt to contractors and engineering debt for repairs made to our sewer and water system. This money will be used to pay debts while waiting on the federal government for funds,” Mayor Hise said.
“Western North Carolina counties appreciate the General Assembly’s efforts to provide cashflow loans to areas impacted by Hurricane Helene, and commend Treasurer Briner for swiftly implementing the program,” said Kevin Leonard, executive director of the North Carolina Association of County Commissioners. “While we recognize this is just the beginning and additional support will be necessary, these efforts are a crucial step in addressing immediate recovery needs.”
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.
To see the full list of local governments that are getting loans in this first round of payouts you can look here.