Retail Loan and Grant Program
SUMMARY & REQUIREMENTS
PROGRAM OVERVIEW
This incentive program offered by the DDA is intended to attract new uses for the Target Area, including new retail; for profit and not for profit Arts and Cultural facilities; small unique restaurants; and other unique boutiques. To be eligible for a loan or grant, the DDA and Review Committee must find that the enterprise is appropriate for the location and furthers the desired mix of uses within the Target Area.
The program is targeted within the area bounded by Flagler Drive, Banyan Boulevard, Rosemary Avenue, and Datura Street (including properties adjacent to both sides of the listed streets) in order to encourage new business development within the Downtown core.
Loan and Grant amounts may be available up to $50,000 ($30,000 loan, $20,000 grant) with the maximum set at 50% of the total project cost. Funding is only approved for leasehold improvements and is reimbursed upon receipt of an occupational license.
Annual funding for this program is limited, therefore, it is administered on a first come, first serve basis until program funds are exhausted.
PROGRAM SUMMARY
- The Retail Loan and Grant Program shall provide up to $50,000 to business owners who plan to locate a new business within the Target Area. A maximum of $20,000 may be in the form of a grant. The loan terms, including the date of the first payment (which shall be no later than six months after closing) shall be specified in the loan documents.
- The combined loan and grant shall not exceed and may be less than fifty (50%) of the total project (leasehold improvement) costs.
- Loans shall not exceed a term of five (5) years or a term ending September 30, 2011, whichever is less, but shall be amortized for payment schedules up to but not exceeding twenty (20) years. If the loan is to a lessee with less than two and one half years remaining on the lease, the loan term may not exceed twice the lease term.
- The interest rate for each loan shall be 80% of Prime, established five days prior to the closing date.
- All loans shall be collateralized within reasonable compliance with traditional underwriting requirements, including personal guarantees if required as a condition of the loan. Each borrower shall be required to meet the closing obligations established in order to protect all liens on the collateral for each loan.
- All applications must include appropriate documentation outlined on page 3. Inadequately documented applications may be rejected.
- Applications shall be reviewed by the DDA Retail Loan and Grant Review Committee in the order they are received. The Committee shall consider if the enterprise is appropriate for the location and furthers the desired mix of uses within the area.
- Grants will no longer be approved once all allocated funds are exhausted.
Once the Retail Loan and Grant Review Committee approves a grant or loan, it is submitted to the DDA Board of Directors for review and approval. The applicant will receive notification detailing all of the terms and conditions of the loan or grant, including, but not limited to the amount of the loan or grant; the term of the loan; the approved uses for the proceeds; the collateral required; any reporting requirements to be met by the applicant; and any conditions required to be met prior to closing.
ELIGIBILITY AND APPLICATION REQUIREMENTS
- Eligible properties must be located within the area bounded by Flagler Drive, Banyan Boulevard, Rosemary Avenue, and Datura Street, including properties adjacent to both sides of the listed streets.
- There must be no liens or taxes due on the property.
- A copy of proof of the leasehold or ownership interest in the business, or a commitment for lease must be submitted with application.
- A cover letter with a brief history of your company and statement of amount requested and proposed terms of loan/grant.
- A 3 year business plan (including financial projections and breakeven analysis) must be submitted with the application.
- Application must include:
- Resume for each business owner
- A current personal financial statement on all owners
- List of collateral and approximate value
- List of credit and banking references
- Detailed statement relative to needs to be met by the loan
- Drawings, Plans, and Specifications (if applicable)
- Specific list/breakdown for use of funds
- Photograph(s) of current location conditions
- Eligible businesses must obtain a valid occupational license with the City of West Palm Beach prior to closing.
Additional information may be requested by the DDA or the Review Committee.
Inadequately documented applications will not be reviewed.
Be sure to include all necessary documentation.
RETAIL LOAN & GRANT APPLICATION Important Instructions:
- Before filling out the Application Form, thoroughly read the PROGRAM SUMMARY & APPLICATION REQUIREMENTS document for this program.
- Only one application can be utilized for one business.
- Do not leave spaces blank. Put N/A if inappropriate.
- In the event that the Retail Loan and Grant Review Committee requests additional information, it must be submitted in a timely manner.
- The processing and approval of projects may take up to 12 weeks.
Inadequately documented applications will not be reviewed.
Be sure to include all necessary documentation.
For an application or more information regarding these programs, please contact Debbie Miller, Community Coordinator via email at Debbie@westpalmbeachdda.com or call 561-833-8873.
“Shaping a Dynamic Downtown”
