Grand Rapids Economic Development Authority Commercial Building Improvement Loan Fund
Services: Incentive and Financial Resource Programs
Contact: Rob Mattei, Director- Community Development
Address: 420 N Pokegama Ave , Grand Rapids, MN 55744
The Commercial Building Improvement Program is a revolving loan fund intended primarily to help building owners and retail tenants improve the appearance and function of their existing buildings. Secondary purposes are to remove blight, increase competitiveness, strengthen the tax base and improve the viability of small businesses in the Grand Rapids commercial districts. Cost sharing in new construction will be considered on a case by case basis.
The Commercial Building Improvement Loan Program funds may finance up to 75% of the project cost, or $40,000, whichever is less.
The owner of a commercial building within a business zone (LB, GB, CBD, SB, SLB, I-1, SI-1) may apply for an improvement Loan. If a person leasing a commercial building would like to apply for a loan, the property owner must also sign the application, and loan papers. The application must be supported by evidence of property ownership, such as title insurance policy, title opinion, or copy of a deed.
Other Funding Required
A minimum of 25% of the project cost must come from other funding sources or owner equity.
Other Special Requirements
Insurance: Applicant must provide verification that the building is insured at a level equal to its value, with the GREDA listed as additional insured. The applicant shall provide verification of Key Man life insurance in appropriate situations such as a sole proprietorship.
Security: The loan must be secured by a promissory note and mortgage of the borrower.
Interested applicants should meet with the Community Development Director (GREDA Executive Director) to obtain information about the GREDA Commercial Building Improvement Loan Program and to discuss the proposed project and obtain application forms.
A completed application form, along with the required submittals must be submitted to the Community Development Director prior to review by GREDA.
The Grand Rapids Economic Development Authority (GREDA) Loan Review Committee, which is comprised of two GREDA Commissioners, the Community Development Director (GREDA Executive Director), the City Finance Director will review each application in terms of its proposed activities in relation to their impact on the Grand Rapids economic community. The Committee will make a recommendation to the GREDA concerning funding of the proposed project for final consideration of the application.
Allowable Use of Proceeds
Program funds may be used for fixed asset financing such as:
– Building construction and expansion
– Building renovation and remodeling
– Landscaping and parking lot improvements
These loan funds are granted for building related purposes only. This program is not intended for purposes such as; providing working capital, refinancing of existing loans, marketing and promotion, or inventory acquisition.
Term of Loan
The maximum term for any improvement loan is 5 years. Loans will be amortized over a twenty year period with a balloon payment due at the end of the term. Payments shall be on a monthly basis unless otherwise approved by the Grand Rapids EDA.
The interest rate for Commercial Building Improvement Loans is four percent (4%), with no penalty for early payment.
Grand Rapids Economic Development Authority Commercial Building Improvement Loan Fund serves the City of Grand Rapids.