The city of Hancock will get a loan of $756,136 from the Michigan State Infrastructure Bank. The Michigan Department of Transportation approved the loan this week to help fund repairs of flood-damaged streets within the city.
Hancock was among those communities part of a disaster declaration by former Governor Rick Snyder following the heavy rains and flooding last June.
The city will receive the funds on a five-year, no-interest term and is expected to be repaid from the city’s general fund. The loan will assist the city in meeting their 20 percent match for Federal Highway Administration funds used to repair flood damaged streets.
The SIB loan program, created in 1995, has a limited amount of money for low-interest loans to accelerate the delivery of transportation projects, especially during emergency situations. The loan program is available to any Act 51 public entity (county road commissions, cities, villages, or MDOT) for eligible transportation projects. The SIB complements traditional funding techniques and serves as a tool to meet urgent project financing demands.
Last summer’s disaster declaration made available state aid and assistance to communities in the area. By declaring a state of disaster, the State of Michigan makes available all state resources in cooperation with local response and recovery efforts in the disaster area as outlined in the Michigan Emergency Management Plan. The declaration authorizes the Michigan State Police, Emergency Management and Homeland Security Division to coordinate state efforts.