Notice of Intent to Publish a Notice of Funding Opportunity Announcement for the Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund Program | TBD STORM

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The Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund Program (STORM RLF) is a new FEMA initiative designed to help governments finance hazard mitigation work before disasters strike, using a revolving loan model rather than traditional one-time grants. FEMA plans to award capitalization grants to eligible entities so they can set up and run their own hazard mitigation revolving loan funds. Once established, those funds can provide low-interest loans to local governments to carry out projects that reduce long-term disaster risk for households, businesses, nonprofits, and whole communities. A key feature is that these loans can also be used to cover the non-federal cost-share (match) required for other FEMA Hazard Mitigation Assistance programs, which can make it easier for local communities to participate in larger mitigation grant opportunities.

This announcement is a Notice of Intent (NOI), meaning FEMA is signaling that a full Notice of Funding Opportunity (NOFO) will be released later, and it is giving potential applicants time to prepare. FEMA indicated the NOFO was expected later in the year, with an anticipated application deadline in spring 2023 (the source data lists an original closing date of 2023-05-31). For the first round, FEMA expects to make available no less than $50 million. Over the next five years, FEMA plans additional funding rounds totaling at least $472.5 million in capitalization grants. This program is funded through the Infrastructure Investment and Jobs Act of 2021 (the Bipartisan Infrastructure Law), which appropriated $500 million total to STORM RLF, including program setup costs.

Eligible applicants for the capitalization grants are states, the District of Columbia, Puerto Rico, and certain Indian Tribal Governments. Tribal eligibility is tied to having received a major disaster declaration under the Stafford Act within the five-year period ending January 1, 2021. FEMA refers to these eligible applicants as "entities." The basic structure is that FEMA funds entities to capitalize a revolving loan fund, and then the entity lends to local governments. The goal is to create an ongoing financing tool: as loans are repaid, the money cycles back into the fund and can be re-lent for additional mitigation projects over time.

A major reason FEMA issued the NOI is that the statute sets up several requirements that take time to meet before applying. The revolving loan fund must be administered by the agency responsible for emergency management (as required by 42 U.S.C. 5135(c)). Some states may be able to use or adapt existing loan mechanisms to satisfy this requirement, but FEMA noted that specifics will be clarified through stakeholder engagement and in the final NOFO. Applicants also need to develop an Intended Use Plan (required by 42 U.S.C. 5135(g)) that lays out how the revolving loan fund will be used, along with local government project proposals (required by 42 U.S.C. 5135(b)) that the entity intends to support through loans.

FEMA also previewed specific application elements that will be required. Applications must include an Intended Use Plan and at least one project proposal request that has been publicly noticed for comment at least six weeks before the capitalization grant application is submitted. In addition, capitalization grant recipients must be ready to contribute to their own revolving loan fund: the statute requires depositing no less than 10 percent of the amount of the FEMA grant into the loan fund as a condition of receiving the award (42 U.S.C. 5135(c)(4)(A)). This is effectively a required recipient contribution tied to capitalization of the fund.

Beyond the funding itself, FEMA emphasized that it plans to actively support applicants and broaden participation, especially for disadvantaged communities that often face barriers to financing mitigation projects. FEMA stated it will work collaboratively with eligible entities to build their capability to run a revolving loan fund, including help with developing Intended Use Plans and preparing applications. FEMA is also planning extensive stakeholder engagement, including outreach in fall 2022, webinars, workshops, and participation in national conferences. The agency intends to use this engagement to gather feedback on how entities plan to use the program, what administrative capacity challenges they anticipate, and how FEMA can shape a more practical, customer-focused program.

For ongoing updates, FEMA directs stakeholders to the STORM RLF program webpage at https://www.fema.gov/grants/mitigation/storm-rlf. FEMA is also inviting comments and recommendations on program design via email at FEMA-STORMRLF@fema.dhs.gov. Key administrative details from the source listing include that this is a discretionary grant opportunity, the funding opportunity number was listed as TBD at the time of the NOI, and the CFDA/Assistance Listing number is 97.139.

• The Department of Homeland Security - FEMA in the other sector is offering a public funding opportunity titled "Notice of Intent to Publish a Notice of Funding Opportunity Announcement for the Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund Program" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 97.139.
• This funding opportunity was created on 2022-08-29.
• Applicants must submit their applications by 2023-05-31. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Eligible applicants include: State governments, Native American tribal governments (Federally recognized), Others.

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[Watch] Creating a grant proposal using the step-by-step wizard inside the applicant portal: