How Can Revolving Loan Funds Make Our Coasts More Resilient?

The document describes revolving loan funds (RLFs) as self-replenishing financing mechanisms that provide low-interest loans to help property owners and municipalities fund environmental improvements. It highlights the Maryland Shore Erosion Control Revolving Loan Fund, which has provided approximately 700 loans over 52 years to support 'living shoreline' projects. It also discusses a feasibility study for a proposed RLF in Puget Sound, Washington, aimed at funding armor removal, soft shore protection, structure relocation, and structure elevation to combat sea level rise and coastal flooding.

• Revolving loan funds (RLFs) are self-sustaining financing tools 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 Maryland Shore Erosion Control Revolving Loan Fund, established in 1970, shifted its focus in the 1970s and 80s from 'hard armor' like bulkheads to nature-based 'living shoreline' projects after research indicated natural solutions were often more effective and less costly.
• Since its inception 52 years ago, the Maryland fund has provided about 700 loans and currently issues between 15 and 20 loans annually, relying solely on repayments of approximately $600,000 to $700,000 per year to operate.
• In Puget Sound, Washington, a feasibility study is assessing a proposed RLF to help homeowners remove hard armor and install 'soft shore protection' or relocate/elevate structures to address coastal flooding and landslides caused by sea level rise.
• Federal legislation and recommendations have prioritized RLFs for disaster risk reduction, including the January 1, 2021, STORM Act, which allows FEMA to distribute funds to states and tribal governments to establish RLFs for hazard mitigation.

APA

Environmental and Energy Study Institute (2021). How Can Revolving Loan Funds Make Our Coasts More Resilient? https://www.eesi.org/files/FactSheet_Revolving_Loan_Funds_and_Coastal_Resilience_2021.pdf

Chicago

Environmental and Energy Study Institute. How Can Revolving Loan Funds Make Our Coasts More Resilient? 2021. https://www.eesi.org/files/FactSheet_Revolving_Loan_Funds_and_Coastal_Resilience_2021.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=How Can Revolving Loan Funds Make Our Coasts More Resilient? |date=January 2021 |url=https://www.eesi.org/files/FactSheet_Revolving_Loan_Funds_and_Coastal_Resilience_2021.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitute2021how, author = {{Environmental and Energy Study Institute}}, 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/files/FactSheet_Revolving_Loan_Funds_and_Coastal_Resilience_2021.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }