(Photo from City of Oxford Facebook Page)
- The program is designed to help cities and counties bridge financial gaps while awaiting federal reimbursement from FEMA. Local governments will be assessed a 3% interest rate for expended funds not approved by FEMA.
Governor Tate Reeves (R) has signed legislation into law creating the “Local Governments Disaster Recovery Emergency Loan Program” after lawmakers made adjustments to the measure following a veto of an earlier attempt at establishing the program last month.
The disaster assistance program will be administered by the Mississippi Emergency Management Agency (MEMA) and provide loans to local governments recovering from federally declared disasters.
Lawmakers sought to pass the measure following the January winter storms that left many north Mississippi cities and counties without power for over a week while causing downed power lines, hazardous roadways and other strains on local infrastructure.
The program is designed to help cities and counties bridge financial gaps while awaiting federal reimbursement from FEMA. Local governments will be assessed a 3% interest rate for expended funds not approved by FEMA.
No loans will be issued after July 1, 2027, and terms are not to exceed five years.
Governor Reeves vetoed the original version of the legislation in March questioning the timing of amendments to the legislation and when it was transmitted to his desk.
Lt. Governor Delbert Hosemann (R) and legislators in both chambers disagreed with Reeves’ assessment of the matter and quickly undertook efforts to reestablish the loan program through another bill prior to the end of the session.