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Safeguarding Tomorrow Revolving Loan Fund Program Fiscal Year 2023 Selections

Fiscal Year 2023 Selections Summary

Fiscal Year 2023 Submissions Summary

Enhancing Equity

The Safeguarding Tomorrow Revolving Loan Fund (Safeguarding Tomorrow RLF) 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.

Fiscal Year 2023 Selections Summary

On Sept. 12, 2023, FEMA announced the selection of eight states that will receive a combined $50 million in capitalization grants to help communities reduce vulnerability to natural hazards and disasters.

Local governments may use capitalization grant funding through low-interest loans to make structures more resilient to natural hazards. This includes improving flood control, implementing changes in zoning and land-using planning needed to adapt to a changing climate, and enforcing adoption of resilient building codes.

Local governments may also apply the funding to satisfy their cost-share requirement for FEMA hazard mitigation assistance grants, lessening their financial burden to implement climate resilience activities. As these loans are paid back to the states, the funding can be used to finance additional mitigation projects, providing a sustainable local source of financing for protecting communities.

President Biden’s Bipartisan Infrastructure Law provided $500 million to fund the Safeguarding Tomorrow program through 2026.

FEMA selected the following eight applications for the first year of funding:

District of Columbia$6,122,122
New Jersey$6,462,963
New York$6,235,802
South Carolina$6,462,963

Each of the eight states selected for awards will use the funding based on their unique mitigation needs and priorities.

FEMA will offer technical assistance through webinars, office hours, website updates and program support materials to help states, certain tribes, territories and the District of Columbia participate and make use of this innovative program.

For additional information or to ask questions, grant applicants should contact their FEMA Regional Offices.

Fiscal Year 2023 Submissions Summary

In this, the inaugural year of the Safeguarding Tomorrow Revolving Loan Fund program, FEMA gave qualified applicants the opportunity to apply for up to $50 million in capitalization grants to create a revolving loan fund. To help with applying for these grants, FEMA hosted 12 sessions where people could hear program-specific guidance and ask questions regarding the application process. These sessions covered several topics such as how to apply, what requirements need to be met, and how to report on grants.

FEMA received applications requesting a total of $181.8 million in capitalization grants to fund mitigation projects in their communities. This made the program over three times oversubscribed for the $50 million available. The oversubscription in requests for grant funding demonstrates the growing need for mitigation investments nationwide.

Applicants represented multiple parts of the country—ranging from the Great Lakes to the Gulf Coast and East Coast. Entities worked with their local governments to solicit project proposals and determine which projects and activities to include within their grant application materials.

FEMA will bridge the lessons learned throughout this first application cycle to make enhancements to the program and increase access. The agency anticipates releasing the next funding opportunity later this fall with higher amounts to encourage participation. The eight selections will also be eligible to apply for funds made available in subsequent grant cycles.  

Enhancing Equity

This program promotes funding to disadvantaged communities through encouraging applicants to develop revolving loan funds that target those areas. Additionally, the revolving fund should provide at least 40% of its loans to underserved communities.

This program provides maximum flexibility for the funding of mitigation projects, allowing local communities to use their own criteria for project prioritization. FEMA does not require the submission of a benefit-cost analysis for capitalization grants or loans to be used.

Mitigation Activities: Eligible project types under this program include activities that mitigate the impact of natural hazards, zoning and land use planning changes, and building code enforcement.

Non-Federal Cost Share: Loans may be used by local governments to satisfy a local government’s non-federal cost-share requirement for other FEMA Hazard Mitigation Assistance (HMA) grant programs, such as the Hazard Mitigation Grant Program, Hazard Mitigation Grant Program Post Fire, Building Resilient Infrastructure and Communities and Flood Mitigation Assistance grant programs.