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WHITE BEAR LAKE HOUSING AND REDEVELOPMENT AUTHORITY <br /> REVOLVING LOAN AND GRANT PROGRAM (RLGP) <br /> I. BACKGROUND <br /> In the fall of 1989, the White Bear Lake Area Economic Development Corporation (the <br /> "WBLAEDC") began a program of downtown revitalization. This effort was started to aid in <br /> strengthening the downtown's vitality in terms of market share and physical appearance. A <br /> significant finding that came from these efforts was the need to develop financing techniques that <br /> encourage existing businesses to begin the process of reinvesting in their commercial properties. <br /> Working with the City, the Corporation has designed a Revolving Loan and Grant Program <br /> (RLGP). The RLGP is aimed at improving the utility and appearance of downtown businesses <br /> while encouraging the leveraging of private investment which would otherwise not occur. The <br /> program provides front-end financing for small loans at below market interest rates for up to a <br /> 10-year term. <br /> The White Bear Lake RLGP established a public/private partnership where an initial $150,000 <br /> public loan/grant pool was made available by the White Bear Lake Housing and Redevelopment <br /> Authority (the "HRA") to assist downtown businesses to make eligible physical improvements. <br /> The program is designed to address redevelopment needs in the City's redevelopment project <br /> area. Although the White Bear Lake RLGP is targeted toward downtown businesses, all existing <br /> businesses within the City's project area (see attached boundary map) are eligible to participate <br /> in the loan program. <br /> The program provides loans up to $40,000 for a term of up to 10 years at two percent interest. <br /> Revolving loan program participation requires a 100 percent match by an authorized <br /> participating financial institution. To be eligible, a financial institution must be located within <br /> the corporate limits of the City of White Bear Lake. Financial institutions have agreed to service <br /> the loans and to provide their match at a competitive market interest rate. <br /> The White Bear Lake RLGP is operated with the following program goals: <br /> • The program provides affordable financing to small businesses for program eligible real <br /> estate improvements. <br /> • The program will be targeted to downtown businesses with other businesses located in the <br /> City's redevelopment project area also eligible. <br /> • The program will serve as a catalyst to leverage private resources. <br /> • The program will require that improvements be consistent with design guidelines approved <br /> and administered by the City. <br /> • The program will be operated as a revolving fund. <br /> The program is administered by the HRA under the guidance of policies set by the WBLAEDC, <br /> City Council and HRA. <br /> 111 <br />