Downtown Development Revolving Loan Fund
Applications for the Revolving Loan Fund program may be submitted at any time. GMA and the Foundation staff will review applications to determine if the project fits the overall objectives of the Foundation and is likely to have a positive economic impact on the community. Applications are evaluated based on leadership, accountability, long-term sustainability, and potential for private investment. Projects should encourage spin-off development, add jobs, promote downtown housing, or add to the cultural enrichment of the community. Each application must also undergo credit underwriting.
Fee Structure – Effective July 1, 2013
|GCF RLF||GCF – SSBCI||Green Communities Fund|
|Origination Fee Cap||N/A||$10,000||N/A|
- Real estate acquisition
- Building rehabilitation
- New construction
- Green space and parks
Ineligible Uses of Funds
- Operating expenses and administration
- Local revolving loan funds
- Public infrastructure projects
- Facade projects
Loan Amounts and Terms
The Foundation presently provides loans up to $250,000. The interest rate is below market rate, and the repayment period is normally 10 years, not to exceed 15 years.
GCF recommends a 50-40-10 financing structure for projects, with 50% of the project cost being financed through conventional lenders, 40% being financed through low interest loan programs (GCF and/or DD RLF), and 10% being the developer’s equity participation.
GCF loans may be structured as follows:
- A loan to a DDA or similar entity
- A loan to a DDA with:
- An intergovernmental agreement with the city.
- A lease or loan to a private owner/developer.
- An intergovernmental agreement with the city, and a sublease to a private owner/developer.
- Local support
- Approach to downtown development
- Project budget and timeframe for completion
- Service Delivery Strategy (SDS) compliance and Qualified Local Government (QLG) designation
- Matching funds
- Underwriting review