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Safeguarding Tomorrow Revolving Loan Fund Program

The Safeguarding Tomorrow Revolving Loan Fund program is authorized under Section 205 to provide capitalization grants to states, eligible federally recognized tribes, territories and the District of Columbia to establish revolving loan funds that provide hazard mitigation assistance for local governments to reduce risks from natural hazards and disasters.

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Fiscal Year 2023 Selections

On Sept. 12, 2023, FEMA announced selections for the $50 million made available in the first year of the new Safeguarding Tomorrow Revolving Loan Fund (RLF) program.

The program's capitalization grants provide low-interest loans to local governments most in need of financial assistance, including low-income geographic areas and underserved communities.

Learn More About the Selections

The Safeguarding Tomorrow RLF program complements and supplements FEMA’s Hazard Mitigation Assistance grant portfolio to support mitigation projects at the local government level and increase the nation’s resilience to natural hazards and climate change.

These low interest loans will allow jurisdictions to reduce vulnerability to natural disasters, foster greater community resilience and reduce disaster suffering.

Federally recognized tribes that received a major disaster declaration are eligible to apply. Currently, this includes 20 tribal nations.

Applying for Safeguarding Tomorrow RLF Funds

Materials and information are available to help entities that are interested in applying for Safeguarding Tomorrow RLF funds to create a revolving loan fund.

FEMA anticipates making capitalization grant awards in late summer of 2023. Read more about what happens during the application process.

Learn more about the reporting and auditing processes for entities that establish revolving loan funds.

Resources and assistance are available to entities that apply for Safeguarding Tomorrow RLF funds and wish to establish revolving loan funds.

Program Overview

Program Highlights

  • FEMA will not limit or restrict project types beyond the limitations in statute
  • Loans may be used as a non-federal cost match for another HMA grant application.
  • FEMA will not require entities to submit a benefit-cost analysis.
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The Infrastructure Investment and Jobs Act (IIJA) became law on Nov. 15, 2021, fully funding the Safeguarding Tomorrow Revolving Loan Fund program and appropriating $500 million over five years. This will last through fiscal year 2026. For the first year, FEMA is making $50 million available to eligible entities to establish revolving loan funds.

FEMA has considered the administrative burden on entities and anticipates making available no less than $5.1 million per capitalization grant application selected for funding with this first funding opportunity.

FEMA will leverage a variety of factors in making awards. If necessary, applications that pass the eligibility criteria review may be evaluated further. Awarded amounts are subject to the availability of funds, quality of applications, and other applicable considerations.

Differences with the Safeguarding Tomorrow RLF Program

In other Hazard Mitigation Assistance grant programs, states and federally recognized tribes are pass-through entities which route subapplicant requests to FEMA for review.

Through the Safeguarding Tomorrow RLF program, FEMA empowers entities to make funding decisions and award loans directly. The revolving loan funds that they create will help local governments carry out hazard mitigation projects that reduce disaster risks for homeowners, businesses, nonprofit organizations and communities to help them build climate resilience.

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This graphic shows the process of applying for the STORM Revolving Loan Fund program. The key timepoints are FEMA announces the NOFO, the capitalization grant is made, the entity has 24 months to make the initial loans, and the local government and state/tribal government then take control of the process.
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Program Priorities

The priorities of the Safeguarding Tomorrow RLF program are to:

  • Empower Entities. FEMA will collaborate with eligible entities to help them increase their capacity and capability, through focused engagement activities leading up to the application period and providing increased technical assistance during the Year 1 application period. 
  • Create innovative funding solutions. Applicants can leverage loans for non-federal cost share with other FEMA Hazard Mitigation Assistance programs, helping underserved communities access additional funding resources.
  • Deliver equitable investments and increased access. A goal of the Safeguarding Tomorrow RLF program is that 40% of the overall benefits generated by the entity loan funds flow to underserved communities.
  • Reduce grant application complexity. The goal of launching this effort is to reduce program complexity by breaking down barriers and increasing access to mitigation funding.
  • Maximize administrative flexibility. Throughout the process, identify administrative burdens and reduce them to the greatest extent possible.
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Read a fact sheet on the Safeguarding Tomorrow RLF program.