SCOR Launches Low-interest Loan Program for Local Governments

The South Carolina Office of Resilience (SCOR) recently launched its Resilience Revolving Fund Loan Program, which makes low-interest loans available to local governments. This includes local government agencies, commissions and other agencies.  

Loans funded through the program may be used to: 

• Buyout properties that have experienced repetitive flood losses. 
• Conduct floodplain restoration or preservation projects. 
• Buyout properties and/or land on which floodplain restoration or preservation projects will be conducted. 

Floodplain restoration and preservation applies to any activity undertaken to re-establish the hydrology and ecology of the floodplain to its natural state or to preserve it in its natural state. Properties are deemed to have experienced repetitive flood losses if they have sustained two or more incidents of weather-related flooding that caused more than $1,000 in damage during the previous 10 years.  

Use of loans through the Resilience Revolving Fund Loan Program has four restrictions, which apply to buyouts.  

1. All buyouts must be voluntary, which prohibits the use of eminent domain. 
2. No loan funding can be used to buyout homes built after July 1, 2020. 
3. The total buyout cost for any single home cannot exceed $500,000. 
4. Once a property is bought out, it must be returned to and preserved as open greenspace in perpetuity no later than six months following its purchase or the completion of the project using either an easement or a restrictive covenant. 

Loan funds may be used to fund an entire project or as a match of one or more other project funding sources. The interest rate is fixed and equal to 40 percent of the current 10-year U.S. Treasury Yield Curve . This is designed to make the loan as affordable as possible. Borrowers can choose repayment terms up to a maximum of 10 years.  

Local governments with limited staffing can request technical assistance with preparing their loan application. SCOR can provide a suggested application framework, step-by-step application process and a pre-review of the application before its final submissions. SCOR staff are available to meet with interested agency representatives to discuss how this resource might provide a financing solution for your buyout and flood resilience needs.  

If you have additional questions, please contact Resilience Revolving Fund Loan Program Manager Don Simmons at don.simmons@scor.sc.gov or 803-822-9578.