Cocke County approves $2 million TEMA HEAL loan agreement to fund Helene recovery

The Cocke County Legislative Body voted on March 17 to approve a Helene Emergency Assistance Loan (HEAL) agreement with the Tennessee Emergency Management Agency (TEMA) providing up to $2,000,000 in loan funds to support recovery from Tropical Storm Helene.

Commissioner Jason McMahan moved to approve the HEAL agreement; Commissioner David Veridal seconded and the motion carried. Under the approved agreement the loan carries no interest or late charges provided the county repays the principal in accordance with the contract terms. The agreement requires Cocke County to apply for a FEMA public assistance (PA) grant within 30 days and to comply with FEMA and TEMA reporting and procurement rules. The loan term is set for 120 months from the effective date and includes provisions that require repayment if FEMA reimbursement is denied or if repayment conditions are not met.

The HEAL agreement authorizes Cocke County to re‑lend proceeds to certain second borrowers — specifically cities/municipalities and publicly or privately operated utilities — for eligible debris removal and water/wastewater repairs caused by the storm. The agreement requires segregated bookkeeping for HEAL funds, quarterly reporting to TEMA, and compliance with federal rules including Davis‑Bacon and the Uniform Administrative Requirements (2 C.F.R. Part 200). The county also pledged to seek FEMA reimbursement and to repay TEMA any amounts covered by FEMA reimbursements.

The contract includes default provisions, a 10% late charge for overdue principal, and mechanisms that permit the State to withhold state‑shared taxes if the county fails to cure a default. The minutes record approval of the agreement; the full signed contract and any subsequent amendments will be part of the county’s records.