Waynesville board approves $1.5 million cash-flow bridge loan application to support FEMA reimbursements and SRF funding

The Town of Waynesville board approved a resolution to apply for a $1.5 million cash-flow bridge loan from the State of North Carolina’s disaster-response cash-flow loan program, a 0% interest option intended to help municipalities cover costs while awaiting FEMA reimbursements and to strengthen SRF loan applications.

Why it matters: Town staff said the loan is 0% interest with a 20-year amortization and that, for eligible distressed communities, some loans can receive principal forgiveness. Staff noted applying for a short-term bridge loan also yields additional competitiveness points for the State Revolving Fund (SRF) loan application—50 points if the bridge loan application is submitted—which could improve the town’s chance of securing a separate SRF loan for longer-term wastewater work.

Staff identified the town’s urgent wastewater need at a legacy junction box on the Little Champions property and said the town has applied for a larger SRF loan (pre-application indicating interest in up to $7 million). The bridge loan would be used to cover near-term expenses until FEMA reimbursements arrive—staff estimated FEMA reimbursements could take three to four years—and the bridge loan carries no application fees.

Motion and vote: A councilmember moved and the board approved the resolution to borrow $1,500,000 under the cash-flow loans for disaster response activities program; the motion passed with an affirmative vote.

Next steps: Staff will submit the bridge loan application and the pre-application information for the SRF loan. Town staff noted the bridge loan request is not binding beyond the application and carries no fees; the board asked staff to proceed and to return with any additional details required for final award or execution.