Indiana communities struggling to repair historic August storm damage can access up to $1 million in emergency infrastructure loans through a new state initiative launched Thursday by State Treasurer Daniel Elliott. According to state officials, the Recovery Advance Program for Infrastructure Damage, or RAPID, aims to bridge the funding gap before federal or state disaster relief arrives.
How the RAPID Loan Program Works
Administered through the Indiana Bond Bank, the RAPID program carries a maximum capacity of $50 million, though State Treasurer Daniel Elliott noted that additional funds can be requested from the board if demand requires it, according to reporting by WFYI. Any local unit of government—including cities, towns, counties, school corporations, libraries, and municipal utilities—can apply for loans without needing a formal disaster declaration.
Loans feature a 2% interest rate with a two-year term, and no payments are due until the loan matures. Local governments can repay the borrowed funds using insurance payouts, local revenue, or eventual federal and state recovery grants. Eligible expenses include emergency infrastructure repairs, debris removal, damage assessment, reconstruction, and related legal costs, alongside reimbursements for expenses communities have already paid out of pocket.
Local Impact Across Indiana Municipalities
Municipal leaders across the state report substantial infrastructure burdens following the severe weather events in August. Gary Mayor Eddie Melton stated that his city is managing approximately 140,000 cubic feet of tree debris and has yet to reach every neighborhood for cleanup, making immediate financial resources critical for local progress.
In Connersville, Mayor Chad Frank noted that his community sustained substantial damage, pointing to wastewater facility repairs that could cost between $4 million and $5 million.
Application Deadlines and Future Disasters
State officials intend for the RAPID program to remain active for future disasters, establishing a permanent backstop for local infrastructure recovery. The initial application deadline for local communities is Sept. 16, followed by a loan closing date on Sept. 30, with subsequent closings scheduled approximately every two weeks. Detailed guidelines and applications are available through the Indiana Bond Bank.
