GALVESTON — The Federal Emergency Management Agency has informed the city that it will forgive a $5 million loan made to Galveston after Hurricane Ike.
The cancellation means that the city will not have to pay back the principal or accrued interest from the Community Disaster Loan it received in 2009.
The loan was given in the city to help ease a cash flow crisis caused by the hurricane.
Payments were scheduled to begin five years after the loan was awarded on Feb. 13, 2009, and came with a 1.75 percent interest rate.
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