Winter 2025 Municipal Climate Recovery Fund Loan Round
The Municipal Climate Recovery Fund (MCRF) is designed to provide municipal budgetary relief for municipalities impacted by severe weather events by lowering the costs of borrowing to bridge FEMA reimbursement or otherwise pay for the unexpected costs of recovery.
In the initial MCRF funding round, following the floods of 2023, thanks to a low-interest capitalization loan from the State Treasurer’s 10% in Vermont Program, the Bond Bank was able to make nearly $15 million in steeply discounted loans to 18 communities across the state. In late 2024, with funding support from the Agency of Administration, the Bond Bank made an additional nearly $5 million in loans in a special round for 5 towns facing acute emergency access issues following the 2024 floods.
Now, with additional funding from the State Treasurer's Office, the Bond Bank is happy to announce another round of MCRF loans for towns impacted by the 2024 floods and related severe rain events - with interest rates expected to be 1.3%.
If applications for funding exceed available funds, the following allocation methodology will be used to prioritize applications:
Disaster Impact Ratio = (Documented losses – expected insurance payouts + own source revenue loss) / Prior
year operating expenses
MCRF Winter 2025 Round Timeline
Application Due Date: Applications will be accepted until Friday, March 14, though review will occur on a rolling basis, and assistance will be available until Friday, March 7.
Loan Approvals: Thursday, March 27 (Expected)
Funding Date: TBD
MCRF Winter 2025 Round Loan Terms
Amount
Minimum $100 thousand; maximum TBD; all loans subject to availability and credit review
Term
7 years (with 5 year amortization after 2 years of deferred principal) (potentially issued initially as a 12-month Current Expense Note)
Interest Rate
1.30%
Closing Costs
$1,000
Payment Dates
Semi-annual - March 1 and September 1
Prepayment
At any time with no penalty
Flow of Funds
Pay-off bank and/or interfund loans; direct expense reimbursement considered upon request
Eligible Uses via Reimbursement
Costs eligible for FEMA Public Assistance Grant Funding, own source revenue loss up to 10% of prior fiscal year, and planning and initial rebuilding of flood impacted infrastructure
Closing Date
TBD
Security
General obligation
Legal
Local bond counsel opinion
Covenants
Quarterly reporting on FEMA reimbursement timeline; annual financial audit starting in year two; FEMA reimbursement must be used to pay off loan (or pro rata portion thereof)