Claremore council approves application to seek up to $5 million disaster loan for tornado recovery

The Claremore City Council voted to authorize staff to apply for a federal Community Disaster Loan (CDL) of up to $5,000,000 to support tornado recovery and provide working capital.

Council members approved a resolution allowing the city manager to execute documents needed to apply, with the application to be submitted subject to review by the city attorney. City staff said the loan interest would begin accruing annually but payments are not due until the end of the loan term.

The loan program can provide up to $5 million and, according to staff, historically many such loans have been forgiven at the end of a five-year period if a municipality can demonstrate substantial, long-term losses. “I can’t say with certainty. I’ve been assured that historically most of those loans are forgiven because it’s a federal program,” said Susan (city staff member), who described the application process and the potential for forgiveness, but added that forgiveness is not guaranteed.

Council members discussed the value of having operating capital available if another disaster struck. A council member said the loan would provide “a little bit of money in the bank, that that we could fall back on in case we have another disaster.”

The motion passed on a roll-call vote. Councilmembers voting yes during the roll call were Feldman, Michael, Cotton, McSpadden and Arwood.

The council’s action authorizes staff to proceed with the application; it does not obligate the city to accept loan terms until further documentation is executed and reviewed by the city attorney.