Small Business Development Loan Program

Direct loans to small business owners, nonprofit organizations, and real estate developers within project areas for a range of activities.

• Acquision of Property
• Clearance and Removal
• Relocation
• Mixed use Development
• Rehabilitation
• Machinery/Equipment
• Residential Rental Rehabilitation
• Historic Preservation
• New Construction

Terms

• Terms of the loan:
  • Adjustable rate based on the 90 day LIBOR plus as basis points with a minimum rate of 5%
  • Secured by Appropriate Collateral with Personal Guarantee
  • Negotiable Amortization, with Principal Due in 15 years
  • Loans Not Assumable
• The project must:
  • Remove Slum and Blight, or
  • Create Jobs for Low-Moderate Income Persons
• The applicant must:
  • Leverage the Maximum Amount Private Financing, with the City Loan Filling a Financing "Gap"
  • Demonstrate Reasonableness of Project
  • Demonstrate Ability to Repay Loan
  • Demonstrate Satisfactory Credit History
• The city loan must:
  • Be Necessary for Project Feasibility, unless it
  • Consists of Exterior Renovation Only -OR- Corrects Code Violations Only

Other Requirements

Fair Housing and Equal Opportunity Guidelines; U.S. Environmental Protection Standards; Flood Insurance; Historic Structure Guidelines; Uniform Relocation Assistance & Real Property Acquisition Policies; Procurement Standards for Bidding and Contracting; Labor Standards; Lead Paint Regulations; Conflict-of-Interest Laws - See Small Business Development Loan Program Rules and Regulations, Chapter 9, for Complete Details.