Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund Program Overview

The Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund (Safeguarding Tomorrow RLF) program allows entities to establish or manage loan funds when receiving capitalization grant funding.

This document provides an overview of the program, including general requirements and priorities.

Program Intent

FEMA's Safeguarding Tomorrow RLF program is the first Hazard Mitigation Assistance program to give capitalization grants for revolving loan funds. Authorized by the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the program gives grants to eligible entities to establish and manage revolving loan funds. Eligible entities include:

• Any state of the United States.
• The District of Columbia, American Samoa, Guam, Commonwealth of the Northern Mariana Islands Puerto Rico and U.S. Virgin Islands,.
• Federally recognized Tribal Nations that have received a direct major disaster declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

The program allows these entities to make low-interest loans to local governments most in need of financial assistance, including low-income geographic areas and underserved communities. The entity will select projects and award loans with less direct federal involvement than other FEMA programs.

A revolving loan fund is a program that allows entities to give loans to local governments to fund a project or activity. After the project or activity is completed, the loan and any interest is repaid into the fund. The entities then issue new low-interest loans for other projects or activities to continue the cycle. When established by an entity under the Safeguarding Tomorrow RLF program the revolving loan fund is also referred to as an "entity loan fund."

FEMA will work with entities throughout the program lifecycle to gather best practices on topics such as RLF administration, performance monitoring, achieving resilience and equity goals, and common project types for loans under this program. These best practices will inform continuous improvement for program guidance, processes and policy.

Priorities

The program statute prioritizes funding for certain types of projects. These include projects that:

• Increase resilience and reduce the risk of harm to natural and built infrastructure.
• Involve a partnership between two or more eligible entities.
• Take into account regional impacts of hazards.
• Increase the resilience of major economic sectors or critical national infrastructure.

FEMA's priorities for the Safeguarding Tomorrow RLF program are to:

• Empower entities: FEMA will support entities to help them increase their hazard mitigation capacity and capability. FEMA will host focused engagement activities and provide technical assistance including webinars, on-demand videos and program support materials (PSM).
• Create innovative funding solutions: Capitalization grant applicants can use loans for the non-federal cost share with other FEMA Hazard Mitigation Assistance programs. This helps provide low-income geographic areas and underserved communities greater access to funding resources.
• Deliver equitable investments and increased access: A Safeguarding Tomorrow RLF program goal is to deliver at least 40% of the overall benefits generated to underserved communities.
• Reduce grant application complexity: FEMA will reduce program complexity by breaking down barriers to increase access to mitigation funding.
• Maximize administrative flexibility: Throughout the process, FEMA will identify administrative burdens and reduce them to the greatest extent possible.

Entity-Led Approach

Through the Safeguarding Tomorrow RLF program, FEMA empowers entities to make funding decisions with less direct federal involvement than other FEMA programs. An entity will use a capitalization grant to give loans to local governments based on their mitigation needs and priorities. Funds from this program may be used for:

• Projects or activities that mitigate the impacts of natural hazards.
• Mitigation planning.
• Building code adoption and enforcement.
• Zoning and land use planning changes.
• Technical assistance to loan recipients.
• Entity loan fund administration costs.
• The non-federal cost share requirement for other FEMA Hazard Mitigation Assistance grants.

Program Implementation

Capitalization Grant Application Process

To apply for funding, eligible entities must follow the application and funding deadlines in each published Notice of Funding Opportunity . All applications and supporting materials must be submitted using the online system stated in the funding opportunity. FEMA will provide technical assistance to support eligible entities throughout the grant application process.

Before applying, an eligible entity must:

• Have a FEMA-approved State or Tribal Hazard Mitigation Plan.
• Issue a public notice soliciting proposals from local governments for hazard mitigation projects and activities no less than six weeks prior to the submission of their application.
• Develop an application that includes a Standard Application for Federal Assistance (SF-424), program-specific Capitalization Grant Application form, Intended Use Plan, and Project Proposal List.
• Post the entity-developed Intended Use Plan for public comment prior to submitting an application.
• Establish a revolving loan fund for which the eligible entity's emergency management agency has the authority to manage the Safeguarding Tomorrow RLF program.
• Determine how the entity cost match (at least 10% contribution) will be met.

These requirements are explained in more detail, including specific considerations for tribes, in materials available on the Safeguarding Tomorrow RLF program webpage...

After applications are sent, FEMA will review them for completeness and compliance with federal requirements. FEMA may request more information from entities during the evaluation process. Once the evaluation is completed, FEMA will award capitalization grants based on available funding and criteria outlined in the funding opportunity.

The capitalization grant application process is summarized below.

Entity Loan Fund Process

To receive a capitalization grant, eligible entities must set-up a revolving loan fund to be administered by their respective emergency management agency. The eligible entity must deposit an amount that is at least 10% of the capitalization grant into an established entity loan fund. The process from loan awards to revolving funds will be as follows:

• The entity loan fund gives low-interest loans to local governments to complete eligible mitigation activities in their communities.
• The entity monitors project progress and loan repayment from local communities.
• As local governments repay loans, these funds can be used to issue new loans.
• FEMA monitors the entity loan fund through reporting mechanisms and audits.

This process is summarized below.

Program Capitalization Grant Versus Entity Loan

FEMA will award capitalization grants to the eligible entity. The entity will use the grant funding to administer the revolving loan fund, award loans to local governments, and provide technical assistance to loan recipients.

Local governments that receive loans from entities may use the funds for mitigation projects, to satisfy non-federal cost share requirements under FEMA Hazard Mitigation Assistance programs, update, adopt and enforce building codes, and make zoning and land use changes.

Capitalization Grant

• Administered by FEMA according to federal statutory requirements and best practices
• Grant agreement between FEMA and an eligible entity (such as a State or eligible Tribal Nation)
• The entity will not repay FEMA for grant funds received, but must comply with federal oversight of grant management requirements

Entity Loan Fund

• Administered by the eligible entity according to the grant agreement and its FEMA-approved Intended Use Plan
• Loan agreements between the entity and loan recipient (such as local governments) with a maximum interest rate of 1%
• Loan recipient must pay back the funds in accordance with the eligible entity's requirements

Additional Program Information

Additional information and resources are available on the Safeguarding Tomorrow RLF web page. FEMA will update program resources and materials as needed.

Comments and questions may be sent by email to [email protected].

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Safeguarding Tomorrow RLF Program