Mitchell County accepts $1.9 million state cash-flow loan; approves loan documents
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Summary
The county approved a $1.9 million second-round state cash-flow loan and separately approved accompanying loan documents; county staff said the loan helps cover ongoing post-disaster project cash needs and will be repaid by June 30, 2030 under the loan terms described.
Mitchell County commissioners voted to accept a second-round state cash-flow loan of $1,900,000 and approved the related loan documents so the county can receive the funds as soon as the paperwork is filed.
County staff told commissioners the second round was larger and drew greater demand statewide; the county received $1,900,000 in that round and must execute loan documents and a budget amendment to set up a special fund for the money.
Staff described a multi-year repayment plan included in the loan terms and said the money is expected to be repaid by June 30, 2030 if FEMA and other project funding permit. The county cautioned that FEMA typically holds a portion of reimbursement (stated in the meeting as 25%) until projects are fully closed out, which could delay full repayment and extend the loan timeline.
A commissioner moved to accept the NC cash-flow loan ordinance and a second motion approved the loan documents; both motions passed by voice vote. County staff said the loan documents and the separate budget amendment will be submitted immediately so the county can receive the funds.
County officials said the loan is intended to bridge cash-flow gaps tied to large FEMA-funded projects and will be tracked in a distinct fund in the county’s next budget amendment.