Application Notes:

Applications will be accepted on a rolling basis until 5:00 p.m. ET on September 30, 2025, or until all funds are expended, whichever is earlier. Full applications for priority funding for tribal applicants must be received by 5:00 p.m. ET on July 1, 2025.

Applications must be submitted online at go.fema.gov.

Applications must include:

• SF 424
• Certification regarding lobbying
• SF 424A (If applicable)
• SF 424B (If applicable)
• SF 424C (If applicable)
• SF 424D (If applicable)
• SF LLL
• Capitalization award application form
• Link to the applicant’s current hazard mitigation plan approved by the funding agency
• Intended use plan
• Project proposal list
• Documentation that the applicant provided the intended use plan for public comment and review
• Copy of current negotiated indirect costs (IDC) rate agreement or copy of the IDC rate proposal (if applicable)

If the applicant's hazard mitigation plan is not publicly available online and cannot be provided as a link, applicants must contact the funding agency via email at [email protected] to coordinate the submission of their hazard mitigation plan.

The following are required in order to submit an application:

• Unique Entity Identifier (UEI) number
• SAM (System for Award Management) registration
• SPOC (state Single Point of Contact) notification

Applicants may obtain a UEI number and verify or renew SAM registration status at www.ecivis.com/sam. Applicants in states participating in the SPOC program must contact the relevant SPOC listed in the SPOC file before applying.

Applicants are required to develop an intended use plan that has been published for review and comment as well as issue a public notice at least six weeks prior to submitting applications. Applicants are also required to develop a project proposal list resulting from a public notice of no less than six weeks inviting hazard mitigation project proposals from local governments prior to completing applications. Refer to pages 11-12 of the NOFA file for additional information regarding intended use plan and project proposal list requirements.

Applications will be evaluated according to the programmatic criteria and the financial integrity criteria detailed on pages 27-30 of the NOFA file.

Refer to the NOFA file and Application folder for additional application information.

Match Notes:

Once an applicant receives notification from the funding agency of a potential award, the applicant must confirm its intent to contribute at least 10 percent of the proposed capitalization award amount to the entity loan fund. If the applicant indicates it will contribute less than 10 percent of the proposed award amount, the funding agency will reduce the amount of the capitalization award to an amount that is ten times that of what the applicant proposes to contribute.

The applicant must deposit the matching funds into the entity loan fund on, or before, the date the funding agency issues capitalization award funds to the applicant. The matching funds must be deposited into the entity loan fund before the amount of the capitalization award will be deposited into the entity loan fund.

The following may not be used as a match:

• Contributions from potential loan recipients
• Costs incurred outside the project period
• Costs to meet matching or cost sharing requirements for other federal grants and cooperative agreements
• Lobbying or other prohibited activities under title18, section 1913 of the U.S. Code (U.S.C.) title 2, section 200.450 of the CFR
• Prosecuting claims against the federal government or any other government entity

Funding Notes:

A total of $178,024,690 in addition to funds not allocated in previous years or returned to this program is available to support capitalization awards through this program. In general, capitalization awards will range from $5.1 million to $9 million; however, if funding is still available after the application deadline, the funding agency may award additional funding above $9 million. Applicants are encouraged to request funding beyond $9 million according to their needs.

For awards exceeding $5.1 million, the funding agency will evaluate whether the application addresses each of the four statutory priorities for this program in order to determine how much additional funding the applicant will receive. The amount of additional funding provided will vary according to the statutory priorities met, as follows:

• Priority 1: risk reduction and resilience: $750,000
• Priority 2: partnerships: $1.2 million
• Priority 3: regional impacts: $1.2 million
• Priority 4: major economic sectors: $750,000

Of the total funding available through this program, a total of $15 million will be held by the funding agency until July 1, 2025, to be allocated as priority funding for tribal applicants.

The project period and budget period will last 24 months from the date of award. Loan-funded projects do not need to be completed within the project period for capitalization awards. In addition, loans do not need to be fully repaid within the project period for capitalization awards. Extensions to the project period may be considered, as detailed on pages 43-44 of the NOFA file.

An entity loan fund may not provide a loan equal to, or more than, $5 million to finance a single hazard mitigation project. Loans provided through the entity loan fund must be made at an interest rate of no more than 1 percent. Loan repayment must commence no later than one year after project completion. Loans must be fully amortized no later than 20 years after the date the project is completed, or 30 years after the date the project is completed for projects in low-income geographic areas.

An entity loan fund may not commit more than 10 percent of the capitalization award amount for loans to implement zoning and land use planning changes.

An entity loan fund may not commit more than 10 percent of the capitalization award amount for loans to perform mitigation planning under section 322 of the Stafford Act.

Entity loan fund administrative costs per federal fiscal year may not exceed $100,000, 2 percent of the capitalization awards made in that fiscal year, or 1 percent of the value of the entity loan fund, whichever amount is greatest, plus the amount of any fees collected by the entity for administrative purposes. Refer to pages 25-26 of the NOFA file for information regarding limits on technical assistance costs within the limits established for administrative costs.

Costs for management and administrative activities that occur before the initial capitalization award is awarded to develop the capitalization award application or initial intended use plan, and to establish the entity loan fund may be allowable.

In general, funds may not be used to provide loans to local governments to meet a nonfederal cost share requirement for other federal grants or cooperative agreements; however, the provision of loans to meet the nonfederal cost share requirements for the Flood Mitigation Assistance program and all mitigation grant programs authorized by the Stafford Act is allowable.

Funds may not be used for:

• Costs incurred outside the project period
• Costs to meet matching or cost sharing requirements for other federal grants and cooperative agreements
• Lobbying or other prohibited activities under title18, section 1913 of the  U.S.C. title 2, section 200.450 of the C.F.R.
• Prosecuting claims against the federal government or any other government entity
• Providing loans to local governments for lobbying, intervention in federal regulatory or adjudicatory proceedings, or to sue the federal government or any other government entity
• Select telecommunications equipment or services, as detailed on pages 22-23 of the NOFA file

For FY 2024, a total of $150 million was distributed via 12 awards ranging from $5.1 million to $17.4 million through this program. For FY 2023, a total of $50 million was distributed via eight awards ranging from $5.1 million to $6,917,284. Refer to the Award file for details.