Loan program okayed by the DDA
February 19, 2010 by WLKM
The Three Rivers Downtown Development Authority (DDA) has added another tool to its toolbox for helping owners and/or tenants make improvements to downtown buildings.
The new tool is a Downtown Development Authority Loan Program – a façade and interior improvement loan program in conjunction with Southern Michigan Bank and Trust.
The DDA Board of Directors voted to move forward with the program during the group’s February meeting Thursday morning (February 18th).
DDA Director Christy Trammell said one person is already interested in utilizing the program and described the interest rate as “very enticing.” She said the rate – based on “Wall Street prime less one percent floating” – is “a significantly lower rate than what you can get without this program.”
Southern Michigan Bank and Trust has committed $500,000 to the program.
The maximum loan amount is $25,000 per building, although waivers of this maximum can be requested at the time of application.
Eligibility extends to owners and/or tenants of existing buildings within the DDA target area.
Rules for the program say that the term for each loan will be determined base on the particular project and use of funding, but will not exceed five years. However, the amortization period is negotiable.
Applications are available from the DDA office.
The DDA Rebate Committee will review applications to be sure the project is in accordance with DDA design guidelines and the intent of the loan. Following its approval, the DDA Rebate Committee will forward the application to the bank for financial approval.
The loan program is intended to stimulate improvements of downtown commercial buildings.