Helene Emergency Assistance Loan Program

Gov. Bill Lee announced the HEAL program, a $100 million fund to directly serve the health and wellness of Tennesseans in the aftermath of Hurricane Helene. The fund will provide no-interest loans to eligible counties who have been impacted by Tropical Storm Helene. Of the total amount, up to $35 million is to be used for water and wastewater infrastructure repair and $65 million is to be allocated for debris management across eligible counties. Counties eligible for assistance include Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hawkins, Jefferson, Johnson, Sullivan, Unicoi, and Washington.

If any additional counties are added to the Major Disaster Declaration for Federal Emergency Management Agency (FEMA) Public Assistance Categories A through G, they may become eligible for HEAL funds.  

If you have questions about the HEAL Program or the application process, please email HEAL.Recovery@tn.gov.

Below you will find frequently asked questions about the HEAL Program:

What is the Helene Emergency Assistance Loan (HEAL) Program? 

Gov. Bill Lee announced the HEAL program, a $100 million fund to directly serve the health and wellbeing of Tennesseans in the aftermath of Hurricane Helene. The fund will provide no-interest loans to eligible counties who have been impacted by Tropical Storm Helene. Of the total amount, up to $35 million is to be used for water and wastewater infrastructure repair and $65 million is to be allocated for debris management across eligible counties. Counties eligible for assistance include Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hawkins, Jefferson, Johnson, Sullivan, Unicoi, and Washington. 

If any additional counties are added to the Major Disaster Declaration for Federal Emergency Management Agency (FEMA) Public Assistance Categories A through G, they will become eligible for HEAL funds.  

 

Why was the HEAL Program created? 

Due to the damage from Tropical Storm Helene, local jurisdictions have incurred significant costs that they are unable to cover while waiting for FEMA reimbursement. The HEAL Program was created to allow impacted counties access to immediate cash flow to begin repairs to their water and wastewater infrastructure and to remove hazardous debris.  

 

Why a loan and not a grant? 

The HEAL Program is a loan program to avoid duplication of benefits and for the impacted counties to be able to recoup the maximum amount of FEMA Public Assistance funds.  

Who is eligible to apply for the HEAL Program? 

1. Eligibility for water and wastewater repairs 

Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hawkins, Jefferson, Johnson, Sullivan, Unicoi, and Washington Counties are eligible to apply for a no-interest loan for damaged water and wastewater facilities. Prioritization for loans specific to water and wastewater will be dependent on the number of connections in the County that were impacted.  

2. Eligibility for debris management

Carter, Claiborne, Cocke, Grainger, Greene, Hawkins, Johnson, and Unicoi Counties are designated as economically “distressed” or “at-risk” according to the Tennessee Department of Economic and Community Development and are eligible for a no-interest loan for the removal and disposal of hazardous debris. Available loan funds will be divided equally among the eligible counties. 

 

Can municipalities and utility companies within the eligible counties access HEAL Loans?

Yes. While municipalities and utility companies cannot apply directly to TEMA for loan relief, those jurisdictions may coordinate with their counties to receive a portion of the loan funds.  Counties may relend HEAL loan funds to (1) municipalities for hazardous debris management and (2) publicly and privately operated utility companies to repair water and wastewater systems.  These “Second Borrowers” would be subject to the same terms and conditions as the counties, including the obligation to seek maximum FEMA reimbursement.

 

How do I apply for the HEAL Program? 

Eligible counties will develop a work plan, which includes a project scope of eligible work, to be submitted to TEMA. Counties applying for these loan funds must also submit supporting documentation, which includes a report from an insurance adjustor or other certified professional cost estimator, as well as certification that the estimated cost directly corresponds to the repair of damage caused by Tropical Storm Helene.  

 

What documents are required to complete the application? 

Counties must submit a:

1.) Work Plan

2.) Report of estimated costs from an insurance adjustor or certified professional cost estimator

3.) Certification that damage was caused by Tropical Storm Helene

 

What is the maximum loan amount that can be borrowed under this program? 

The maximum amount a County may request through the HEAL Program is $15 million.  

 

Are there any interest rates associated with the loan? 

No. The HEAL Program is no-interest. Eligible counties will only be required to pay back the loan’s principal in full. What is the repayment plan for these loans? The County will agree to apply for a FEMA Public Assistance (PA) Category A: Debris Removal, Category B: Emergency protective measures, and Category F: Public utilities for debris management and water and wastewater facility repairs. Any Second Borrowers will also apply for PA grants for eligible costs associated with this loan program and Tropical Storm Helene. Any PA grants the County and Second Borrowers receive from FEMA will be repaid to TEMA within 30 days of receipt of funds from FEMA. 

 

What if a County or Second Borrower is denied by FEMA Public Assistance? 

The County’s obligation to repay the full loan amount is absolute and not conditioned for reimbursement by FEMA. If the County and any Second Borrowers are denied some or all PA grants, the County and any Second Borrowers shall appeal those decisions with FEMA. Ultimately, the County is responsible for repayment of the loan to TEMA.  

 

How long is the loan term?

The county will have 10 years to repay the loan in full to TEMA. 

 

Are there any penalties for late repayment of the loan? 

Yes. The County will be subject to a late charge of 10 percent of the principal unpaid balance of the loan if payment is not made to TEMA within 30 days of FEMA reimbursement.  

How will loans be disbursed? 

The Tennessee Emergency Management Agency is responsible for disbursing funds to counties after the work plan has been completed and the loan agreement is fully executed. Counties will be able to immediately draw down 100 percent of the funds at loan closing.  

 

When is the deadline to apply for HEAL funds? 

The deadline to apply for HEAL funds is Tuesday, November 5, 2024. Any applications received after November 5 will have to wait for a second disbursement of funds, if available.  

 

How long will it take to receive a decision after submitting the loan application? 

Counties will be notified of funding decisions no later than Tuesday, November 12, 2024.  

 

What are the criteria used to determine approval for the loan? 

The $65 million will be split evenly between the distressed and at-risk counties for eligible debris management projects.  

The $35 million will be allocated based on the number of impacted water/wastewater connections. TEMA will prioritize projects based on those numbers and fund down the list until the funds are exhausted.