Nearly $23 million in interest-free loans are being distributed to communities in western North Carolina that are still rebuilding after Hurricane Helene.
The announcement comes on the eve of the two-year mark of Helene’s devastation in western North Carolina.
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State lawmakers set aside $20 million for the 2026 round of the Cashflow Loan program. Another $2.7 million from previous appropriations is also being distributed, according to the North Carolina Department of State Treasurer.
The program helps local governments cover rebuilding and cleanup costs while they wait for federal funding. The Treasurer’s Office says it received more than $100 million in requests for the 2026 round alone.
This year, local governments applied for loans for specific projects and community needs. That differs from previous rounds, when federal paperwork determined how the funding was divided.
The Treasurer’s Office said it reduced administrative costs by using artificial intelligence and automation to help track loans and anticipated repayment schedules. That allowed the entire $20 million appropriated this year, along with $2.7 million from previous appropriations, to go to western communities.
The loans are interest-free and are expected to be repaid no later than June 30, 2030.
The funding announcement came the same day heavy rain brought flash flooding to parts of western North Carolina.
A flash flood warning was issued overnight for parts of Buncombe, Henderson, McDowell, Polk and Rutherford counties. The National Weather Service said between 2.5 and 4 inches of rain fell across the warned area.
Shortly after 3 a.m., officials said floodwaters began to recede as the rain lightened. The warning expired at 5:45 a.m.
The flooding comes as many mountain communities continue rebuilding nearly two years after Helene.
