Meeting Date: June 5, 2025
Title
State Cashflow Loans for Disaster Response Activities - Amendment to Loan Agreement
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Summary:
summary
The General Assembly created the $100 million cashflow loan program under the Disaster Recovery Act of 2024, <https://www.ncleg.gov/sessions/2023/bills/senate/html/s382v4.html> 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. At the April 7, 2025, meeting the Board approved a Resolution to Approve North Carolina Cashflow Loan Agreement, Promissory Note, and Associated Agreements. To address concerns counties raised about how to handle expedited funding under the loan agreement, the State Treasurer’s Office worked with outside counsel to finalize a template amendment to the Cashflow Loan Agreement to account for the expedited funding from FEMA and a resolution was passed May 5, 2025 to address that concern.
Recently, the State Treasurer’s Office has drafted an additional amendment to the Cashflow Loan Agreement to modify the payment terms. This will address the concern raised about reporting the liability as short-term or long-term in the upcoming financials. Payment terms are updated in the amendment, to be repaid no earlier than the five-year anniversary of the Loan Date or June 30, 2030. A resolution is included approving the amendment to the loan agreement. It is recommended that the Board approve the resolution.
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Budget:
N/A
Contact Information:
Paula Roach, Finance Director
287-6348
paula.roach@rutherfordcountync.gov
Recommended Motion:
recommended action
Approve resolution.