North Carolina SB 449: Continuing Budget Operations Part IV.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-97
SENATE BILL 449

*S449-v-5*
AN ACT TO IMPLEMENT ADDITIONAL BUDGETARY ADJUSTMENTS AND TO MAKE
OTHER CHANGES.

The General Assembly of North Carolina enacts:

PART I. DISASTER RECOVERY MODIFICATIONS

GOLDEN LEAF – HURRICANE HELENE BRIDGE LOAN MODIFICATIONS
SECTION 1.1.(a) Section 4C.3 of S.L. 2024-53 reads as rewritten:
"...
"SECTION 4C.3.(b) Definitions. – The following definitions apply in this section:
...
(2) Interest-only period. – A period of time, not to exceed 12 24 months from the
date that a loan is awarded, within which a qualifying business may make
interest-only payments on a loan.
...
"SECTION 4C.3.(c) Use of Funds. – The following shall apply to the program and to loans
made under the program:
...
(2) A loan provided The total amount loaned to a qualifying business under the
program is limited to no more than one hundred fifty thousand dollars
($100,000) per qualifying business.($150,000).
(3) The term of the loan shall not extend beyond June 30, 2030.2032.
...
(5) A lender, as authorized by Golden LEAF, may take prudent and commercially
reasonable efforts to remedy a default, a likelihood of default, or bankruptcy
filing by a business, including restructuring the terms of a loan and entering
into settlement agreements, provided that, if a loan is restructured, the
following requirements are met:
...
b. The term of the loan is not extended beyond June 30, 2030.2032.
"SECTION 4C.3.(e) Reporting. – Beginning December March 15, 2025, 2026, and
continuing every six months thereafter, Golden LEAF shall submit a report on the program to
the Joint Legislative Economic Development and Global Engagement Oversight Committee and
the Fiscal Research Division. The duty to report pursuant to this section shall cease after the
submission of the report following when Golden LEAF has remitted the entirety of the net loan
funds to the Office of State Budget and Management. Each report shall contain, at a minimum,
all of the following:
...."
SECTION 1.1.(b) This section is effective when it becomes law and applies
retroactively to all loans made under the program.

Page 2 Session Law 2025-97 Senate Bill 449
LOCAL GOVERNMENT CAPITAL GRANT PROGRAM MODIFICATION
SECTION 1.2.(a) Section 2B.1(b) of S.L. 2025-26 reads as rewritten:
"SECTION 2B.1.(b) Criteria; Uses. – OSBM shall disburse grants to eligible recipients
under a damage per capita formula developed from FEMA's damage estimates and reports in the
affected area from Hurricane Helene. The grants shall be used for capital projects to repair,
renovate, or replace infrastructure damaged by Hurricane Helene. These capital projects must be
projects that have been denied eligibility are not eligible for FEMA Public Assistance
reimbursement. OSBM shall consult with the Department of Public Safety, Division of
Emergency Management, to confirm each project's ineligibility for FEMA Public Assistance
reimbursement."
SECTION 1.2.(b) This section is retroactively effective on June 27, 2025, and
applies to grants applied for, disbursed, or obligated on or after that date under the Hurricane
Helene Local Government Capital Grant Program.

CASHFLOW LOAN PROGRAM FOR LOCAL GOVERNMENTS MODIFICATION
SECTION 1.3.(a) Purpose. – Notwithstanding Section 4E.5 of S.L. 2024-53, as
amended by Section 1F.1 of S.L. 2024-57, the Department shall make modifications to the
cashflow loan program for eligible communities consistent with this section.
SECTION 1.3.(b) Definitions. – The following definitions apply in this section:
(1) Affected area. – As defined in Section 1.4 of S.L. 2025-26.
(2) Affected city. – A city, as defined in G.S. 160A-1, that has a population of
10,000 or fewer and has a preliminary damage estimate of greater than one
hundred percent (100%) of the city's 2024-2025 budget.
(3) Affected county. – A county, as defined in G.S. 153A-1, that (i) has a
population of 25,000 or fewer based on the 2023 Certified County Population
Estimates from the State Demographer, and has a preliminary damage
estimate of greater than fifty percent (50%) of the county's 2024-2025 budget,
or (ii) contains within its territory an unincorporated area that suffered
catastrophic damage.
(4) Budget. – As defined in G.S. 159-7(b)(1).
(5) Cashflow loan program. – The program operated by the Department in
accordance with Section 4E.5 of S.L. 2024-53, as amended.
(6) Catastrophic damage. – Damage caused by Hurricane Helene that qualifies, in
whole or in part, for FEMA Public Assistance Categories C through G.
(7) Department. – The Department of the State Treasurer.
(8) Eligible community. – An affected city or county or an affected county that
has within its territory an unincorporated area located within the affected area
that suffered catastrophic damage.
(9) FEMA. – Federal Emergency Management Agency.
SECTION 1.3.(c) Terms of Loans. – An eligible community that receives a loan
under the cashflow loan program shall not be required to