Laserfiche WebLink
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) <br />BUSINESS REVOLVING LOAN PROGRAM GUIDELINES <br />REVISED 3 -1 -2002 <br />The purpose of the fund is to provide financial assistance to retail, service and light <br />manufacturing businesses tlurough joint private sector and public action. <br />The Columbia Heights Economic Development Authority (EDA) has established a City- <br />wide, low interest, longer term loan program for the following purposes: <br />• To improve the capability and incentive for owners and tenants to upgrade the <br />appearance, structural condition and operating efficiency of their place of business. <br />• To help businesses improve their market and service of their business to the <br />community. <br />• To retain and expand job opportunities for Columbia Heights residents. <br />• To encourage utilization of vacant and underutilized commercial /industrial <br />buildings /sites. <br />The Columbia Heights Economic Development Authority (EDA) in reviewing applications, <br />will also consider the following: <br />• The date of the application. <br />• The extent of the improvements leveraged by revolving loan fiords. <br />• The extent of new or expanded business and job opportunities. <br />• The extent of rehabilitation and use of existing vacant structures. <br />How the Program Works <br />Borrower prepares a loan request to cover the cost of commercial /industrial property <br />rehabilitation. <br />Borrower applies to a private lender and the Columbia Heights Economic Development <br />Authority (EDA). If approved by both, the lender provides financing for their part of the <br />project cost at their market rate and the Columbia Heights Economic Development Authority <br />provides up to $25,000 per loan at 2% interest. The amount of the Columbia Heights <br />Economic Development Authority loan must be matched or exceeded by a participating <br />lender. Borrowers may apply two times for separate projects. Borrowers must make <br />application with a lender- commitment letter to the Columbia Heights Economic <br />Development Authority before any work is started. <br />Term on the loan is up to 10 years and is set by the private lender based on the borrower's <br />ability to pay and the use of the funds. The private lender also talces primary responsibility <br />for the credit analysis and underwriting. <br />8 <br />