The Kresge-backed loan fund will help fill a gap in disaster recovery relief in under-resourced communities.

SBP, a national disaster resilience and recovery nonprofit, announced the launch of a new partnership with The Kresge Foundation and Credit Human, a nonprofit federal credit union and financial cooperative, to accelerate recovery among underinsured and uninsured homeowners affected by federally declared disasters.

Credit Human will lend up to $8 million in loan funds for the program which will expand SBP’s Recovery Acceleration Fund (RAF), a revolving loan fund that finances home repairs for disaster survivors who lack the means to rebuild on their own. The short-term bridge funds made available through RAF will enable communities striving for economic mobility to overcome financial barriers that delay housing recovery after presidentially declared disasters. Kresge and SBP will act as financial guarantors, with Kresge providing Credit Human a loan guarantee of up to $2 million.

“Delays in disaster assistance strain social services while deeply and disproportionately impacting the net worth of low-income families. Equitable recovery assistance is essential to rebuilding resilient communities,” said Tosha Tabron, director of originations for Kresge’s Social Investment Practice. “Through our partnership with SBP and Credit Human, we hope to make strides toward increasing stability and opportunity in American communities by helping families swiftly rebuild, recover and return home.”

The RAF allows families with limited economic resources the opportunity to return home via short-term, no-cost, post-disaster home rebuilding loans. Qualified homeowners will be able to rebuild their homes on an accelerated timeline without waiting for HUD Disaster Recovery Funds, a process that can take anywhere from 6 to 30 months, often forcing families to either live in the unsafe, unhealthy conditions of their damaged homes or pay for temporary housing.

“This promising funding model will help disaster survivors return to their homes faster,” said SBP Chief Financial Officer Keith McCulloch. “At scale, with the support of visionary partners like Credit Human and Kresge Foundation, the RAF program could accelerate the housing recovery process for entire communities and tens of thousands of citizens each year.”

In the short term, this partnership will benefit qualified homeowners affected by Hurricane Ian in Florida. In the longer term, it has the potential to deliver recovery assistance at a much greater scale in communities impacted by major disasters across the country.

Read the full release: SBP, Kresge, and Credit Human launch social impact partnership to help disaster-affected communities rebuild faster