Florida Statutes 288.066 – Local Government Emergency Revolving Bridge Loan Program
Current as of: 2024 | Check for updates
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(1) CREATION.–The Local Government Emergency Revolving Bridge Loan Program is created within the department to provide financial assistance to local governments impacted by federally declared disasters. The purpose of the loan program is to assist these local governments in maintaining government operations by bridging the gap between the time that the declared disaster occurred and the time that additional funding sources or revenues are secured to provide them with financial assistance.
(2) ELIGIBILITY.–To be eligible for a loan under the program, a local government must be a county or a municipality located in an area designated in a Federal Emergency Management Agency disaster declaration. The local government must show that it may suffer or has suffered substantial loss of its tax or other revenues as a result of the disaster and demonstrate a need for financial assistance to enable it to continue to perform its governmental operations. Access to and eligibility for the loan program supersedes any local government charter or borrowing limitations that would otherwise financially constrain the local government’s ability to recover from a disaster.
(3) LOAN TERMS.–
(a) The department may provide interest-free loans to eligible local governments through a promissory note or other form of written agreement evidencing an obligation to repay the borrowed funds to the department.
Terms Used In Florida Statutes 288.066
- Department: means the Department of Commerce. See Florida Statutes 288.005
- Loan program: means a program established in this chapter to provide appropriated funds to an eligible entity to further a specific state purpose for a limited period of time and with a requirement that such appropriated funds be repaid to the state. See Florida Statutes 288.005
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) The amount of each loan must be based upon demonstrated need.
(c) The term of the loan is up to 10 years.
(4) APPLICATION.–The department shall prescribe a loan application and may request any other information determined necessary by the department to review and evaluate the application. The eligible local government must submit a loan application within the 12 months after the date that the federal disaster was declared. Upon receipt of an application, the department shall review the application and may request additional information as necessary to complete the review and evaluation. If the loan application is approved, the department shall determine the amount to be loaned, which may be a lower amount than requested, based on the information provided and the total amount of funds available to be loaned and in relation to demonstrated need from other eligible applicants. If the loan application is denied, reasons for the denial may include, but are not limited to, the loan risk, an incomplete application, failure to demonstrate need, or the fact that receiving a loan may negatively affect the local government’s eligibility for other federal programs.
(5) USE OF LOAN FUNDS.–A local government may use loan funds only to continue local governmental operations or to expand or modify such operations to meet disaster-related needs. The funds may not be used to finance or supplant funding for capital improvements or to repair or restore damaged public facilities or infrastructure.
(6) LOAN REPAYMENT.–
(a) The local government may make payments against the loan at any time without penalty. Early repayment is encouraged as other funding sources or revenues become available to the local government.
(b) Loans become due and payable in accordance with the terms of the agreement.
(7) ADMINISTRATION.–
(a) Upon the issuance of a federal disaster declaration, the department shall provide notice of application requirements and the total amount of funds available and shall make loan information available to eligible local governments. Based upon the amount of funds in the Economic Development Trust Fund available to be loaned and anticipated balances, the department may make funds available in an amount reasonably related to the anticipated need, based upon the impacts of the federal disaster, up to the total amount available.
(b) The department must coordinate with the Division of Emergency Management or other applicable state agencies to assess whether such loans would affect reimbursement under federal programs for disaster-related expenses.
(c) All repayments of principal and interest must be returned to the loan fund and made available as provided in this section. Notwithstanding s. 216.301, funds appropriated for this program are not subject to reversion.
(8) RULES.–The department may adopt rules to implement this section.
(9) EXPIRATION.–This section expires July 1, 2038. A loan may not be awarded after June 30, 2038. Upon expiration, all unencumbered funds and loan repayments made on or after July 1, 2038, must be transferred to the General Revenue Fund.