How Can Revolving Loan Funds Make Our Coasts More Resilient?

The fact sheet explains the structure of revolving loan funds (RLFs) as self-replenishing financing tools that lower financial barriers for environmental improvements. It highlights the Maryland Shore Erosion Control (SEC) RLF, which shifted from 'hard armor' to 'living shoreline' projects, and a feasibility study for a similar RLF in Puget Sound, Washington, aimed at armor removal and structure relocation to combat sea level rise and erosion.

• Revolving loan funds (RLFs) are self-sustaining financing mechanisms that use a base of capital—often from grants or private investment—to issue loans, which are then replenished as borrowers repay the principal and interest.
• The U.S. government has prioritized RLFs for hazard mitigation, notably through the January 1, 2021, Safeguarding Tomorrow through Ongoing Risk Mitigation (STORM) Act, which allows FEMA to provide funds to states and tribal governments to establish RLFs for disaster risk reduction.
• Maryland's Shore Erosion Control (SEC) Revolving Loan Fund, established in 1970, transitioned from funding 'hard armor' like bulkheads to exclusively funding 'living shoreline' projects following the 2008 Living Shoreline Protection Act.
• The Maryland SEC RLF provides zero-interest loans with repayment terms of 5, 15, or 20 years, and has provided approximately 700 loans over 52 years, relying solely on repayments for operations since the 1970s.
• In Puget Sound, Washington, a feasibility study is being conducted to establish an RLF to help homeowners remove hard armor and implement 'soft shore protection' or relocate/elevate structures to address coastal flooding and landslides.
• Project costs for shoreline resilience vary significantly, with armor removal costing between $10,000 and $20,000, while moving a house can cost more than $200,000.

APA

Crook, M. (2021). How Can Revolving Loan Funds Make Our Coasts More Resilient? Environmental and Energy Study Institute. https://www.eesi.org/papers/view/fact-sheet-how-can-revolving-loan-funds-make-our-coasts-more-resilient

Chicago

Crook, Maia. How Can Revolving Loan Funds Make Our Coasts More Resilient? Environmental and Energy Study Institute, 2021. https://www.eesi.org/papers/view/fact-sheet-how-can-revolving-loan-funds-make-our-coasts-more-resilient.

Wikipedia

{{cite report |last1=Crook |first1=Maia |title=How Can Revolving Loan Funds Make Our Coasts More Resilient? |publisher=Environmental and Energy Study Institute |date=21 January 2021 |url=https://www.eesi.org/papers/view/fact-sheet-how-can-revolving-loan-funds-make-our-coasts-more-resilient |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{crook2021how, author = {Crook, Maia}, title = {{How Can Revolving Loan Funds Make Our Coasts More Resilient?}}, institution = {Environmental and Energy Study Institute}, year = {2021}, month = jan, url = {https://www.eesi.org/papers/view/fact-sheet-how-can-revolving-loan-funds-make-our-coasts-more-resilient}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }