Call to Submit Proposals for the Safeguarding Tomorrow Revolving Loan Fund Program

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DEADLINE TO SUBMIT HAS BEEN EXTENDED TO MARCH 31ST 

The Michigan State Police Emergency Management and Homeland Security Division is seeking community proposals to implement hazard mitigation projects funded through low-interest loans under the new "Safeguarding Tomorrow Revolving Loan Fund Program." 

 

U.S. Senator Gary Peters (MI), Chairman of the Homeland Security and Governmental Affairs Committee, created and secured funding for this program as part of his "Safeguarding Tomorrow Through Ongoing Risk Mitigation (STORM) Act." The STORM Act grants FEMA the authority to work with states and tribal governments to establish low-interest loan funds for disaster mitigation. All Michigan communities are eligible to apply for this award.  

 

MSP/EMHSD must provide a project proposal list of interested local communities to the Federal Emergency Management Agency (FEMA) to apply. A community's interest must be documented for the MSP/EMHSD to apply for funding for these projects. A project plan or extensive documentation is not required to submit interest to the proposal list. The deadline to submit to project information form for Michigan's proposed list is March 31st.  You can complete the brief form with your project of interest here. 

 

If funding to the state is approved, communities that complete the form can submit a formal application for a loan. Interested communities should complete an online project form found here. To be eligible to apply, local communities must have a Hazard Mitigation Plan that FEMA has approved. Municipalities can contact their county emergency manager for the County's Hazard Mitigation Plan.  

Eligibility Criteria & Loan Overview

Please note, this is not a loan application. No funding is currently available. If loan funding becomes
available, communities who complete the form will be asked to apply.

 

Eligibility

  • If awarded, a capitalization grant would allow the state to provide loans to local governments and
    tribes.
  • Loan applicants must have a hazard mitigation plan that has been approved by the Federal
    Emergency Management Agency (FEMA).
  • Loans awarded for certain types of projects will require Environment and Historic Preservation (EHP)
    review (before loan disbursement).
  • A benefit-cost analysis is not required.

 

Hazard Mitigation Activities

  • Eligible project types under this program include, activities that reduce disaster risks for
    homeowners, businesses, nonprofit organizations, and communities from the impact of natural
    hazards, including:

    • Drought and prolonged episodes of intense heat.
    • Severe storms, including hurricanes, tornados, windstorms, cyclones, and severe winter
      storms.
    • Wildfires.
    • Earthquakes.
    • Flooding, including the construction, repair, or replacement of a non-Federal levee or other
      flood control structure (subject to specific requirements).
    • Shoreline erosion.
    • High water levels.
    • Storm surges
  • Zoning and land use planning changes.
  • Building code enforcement.
  • Loans under this program may also be used by communities to pay the non-federal cost share for
    Safeguarding Tomorrow Revolving Loan Fund Program
  • FEMA Hazard Mitigation Assistance grants

 

Loan Information

  • The maximum loan amount per hazard mitigation project is $5 million.
  • Interest rate of no more than 1 percent.
  • Loan repayment will commence no later than 1 year after project completion.
  • Loan repayment will be complete no later than 20 years after the date the project is completed, or
    30 years after the date the project is completed for projects in a low-income geographic area.
  • Loan recipient must establish a dedicated source of revenue for repayment.

 

Next Steps

  • Communities interested in applying for a loan must complete the online project information form
    by March 31, 2023.
  • The MSP/EMHSD will develop a project proposal list, generated from community input, for use in
    the state application for a capitalization grant.
  • If there is adequate community interest in loan funding for eligible activities, MSP/EMHSD will
    develop an “Intended Use Plan” which will be made available for public comment.
  • The MSP/EMHSD will complete and submit a grant application package to FEMA by April 28, 2023.