North Carolina Begins Disbursing Hurricane Helene Relief Loans to Local Governments

Pat Brand

389 Country

The Department of State Treasurer (DST) has started distributing the first wave of interest-free loans to local governments impacted by Hurricane Helene, with more funds expected to roll out soon, State Treasurer Brad Briner announced on February 25, 2025. The initiative stems from a $100 million cashflow loan program established by the General Assembly under the Disaster Recovery Act of 2024, signed into law on December 11, 2024, to support communities awaiting federal aid.

The program aims to provide immediate financial relief to local governments in Western North Carolina, where Hurricane Helene left a trail of destruction last year. Treasurer Briner praised the swift action of his team, particularly highlighting the efforts of Jeff Poley, DST’s Director of Disaster Services and Rural Economic Development. “We had a big goal on a short deadline, and we are excited to announce that help is on the way,” Briner said. “Jeff Poley and his team worked relentlessly to create the program from the bottom up, recognizing the urgent need to restore upended lives and rebuild neighborhoods.”

As of February 21, loans totaling $73.5 million have been approved for 98 local governments, with some already receiving their funds. Poley noted that the remaining portion of the $100 million is being reserved due to challenges faced by some communities in completing their applications. Lingering damage from the hurricane, compounded by recent winter storm closures, has slowed the process, but Poley’s team is collaborating with affected areas to meet an extended deadline. “More loans will be issued in coming weeks as we continue to work through the unavoidable challenges,” he said, expressing gratitude to partners like the N.C. League of Municipalities, the N.C. Association of County Commissioners, and the N.C. Department of Emergency Management for their support in launching the program.

The loans are a lifeline for municipalities grappling with mounting recovery costs. Rose Vaughn Williams, executive director of the North Carolina League of Municipalities, emphasized their importance: “Even as federal and other state resources are made available over time, municipalities have expenses that must be paid now to help residents recover.”

She commended Briner and his office for their collaborative efforts, noting that the program ensures “help is getting to residents more quickly and more efficiently.”

In Spruce Pine, the largest municipality in Mitchell County, Mayor Philip Hise welcomed a $2.8 million loan to address debts incurred from repairs to the town’s sewer and water systems. “Our town has accumulated several million in debt to contractors and engineering debt,” Hise said. “This money will be used to pay debts while waiting on the federal government for funds.”

Kevin Leonard, executive director of the North Carolina Association of County Commissioners, echoed the sentiment, calling the loans a “crucial step” in meeting immediate needs. “While we recognize this is just the beginning and additional support will be necessary, these efforts are vital for recovery,” he said.

Under the program, local governments must submit damage assessments to the N.C. Department of Emergency Management to determine loan amounts, and their governing boards must vote to accept the funds. Requests from school districts are processed through their respective county governments.

With the first checks already delivered and more on the horizon, the initiative marks a significant effort to bridge the gap for Western North Carolina communities as they rebuild from one of the region’s most devastating natural disasters.