2019-06-19 EDA Packet - Laserfiche WebLink

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CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) I.BACKGROUND The Centerville Economic Development Authority (the ÐCVEDAÑ) endeavors to support a program of city revitalization. This effort is aimed at strengthening the cityÓs vitality in terms of market share and physical appearance. Working with the City, the CDEVA has designed a Revolving Loan and Grant Program (RLGP). The RLGP is aimed at improving the utility and appearance of downtown businesses while encouraging the leveraging of private investment which would otherwise not occur. The program provides front-end financing for small loans at below market interest rates for up to a 10-year term. The Centerville RLGP established a public/private partnership where an initial $50,000 public loan/grant pool was made available by the CVEDA to assist businesses to make eligible physical improvements. The program is designed to address redevelopment needs throughout the city. The program provides loans up to $20,000 for a term of up to 10 years at two percent interest. Revolving loan program participation requires a 100 percent match by the business, through an authorized participating financial institution. To be eligible, a financial institution must be willing to lend to businesses within the corporate limits of the City of Centerville. Financial institutions have agreed to service the loans and to provide their match at a competitive market interest rate. The Centerville RLGP is operated with the following program goals: Provide affordable financing to small businesses for program eligible real estate improvements. Target downtown businesses along Centerville Road and Main Street with other businesses located in the City also eligible. Serve as a catalyst to leverage private resources. Require that improvements be consistent with city code. For businesses within the M-1 & M-2 zoning districts, this includes the design guidelines referenced in city code. Require businesses receiving funds to be compliant with existing city code or to come into compliance in the course of the improvements proposed. Structures which qualify as legal nonconformities may remain. The program will be operated as a revolving fund. The program is administered by the EDA under the guidance of policies set by the City Council and EDA. The City of Centerville EDA is responsible for: Determining individual applicantÓs eligibility based on: - Location of property to be improved; - Improvement scope; 1 6