What is the Downtown Improvement Loan Program?
What Types of Improvements Can Be Funded?
Interior Leasehold Improvements include floors, wall and ceiling finishes, built-in cabinetry, ceiling light fixtures and mechanical heating systems. Removeable items such as equipment or furnishings are not eligible.
Rental Housing – Rehabilitation of existing rental housing, which is part of a commercial building, is eligible if done in conjunction with any of the other eligible improvements listed above.
Up to $20,000 may be used for demolition and razing of existing buildings.
How are Applications Processed?
Applicants for Exterior Facade Improvements will also have Part I of their application evaluated for compatibility with the St. cloud Downtown Design Guidelines, included in the application packet.
Part II, entitled “Loan Approval” relates to other information necessary for the evaluation of the applicant’s credit worthiness. It must be submitted to a participating lender of the applicant’s choice. Any participating lender may substitute or waive any portion of Part II, so the applicants are encouraged to meet with their chosen financial institution to determine the type of required information.
The maximum loan amount is $40,000, the interest rate is fixed at 5% for the full term of the loan. All loans are amortized over a maximum period of five-years. The maximum loan amount stated above shall be reduced by the principal balance owing from any loans under a prior year’s program. No individual or entity in which the individual has an ownership interest shall be eligible for more than one loan under the Loan Program.
All loan applications must be made prior to commencement of the project by applicant.
Why is this Program Being Offered?
Is There a Fee Charged?