Purpose of the Guidelines
The following guidelines have been developed to inform a potential borrower of the extent and scope of the loan subsidy program that is available through the participating Lenders listed on Exhibit A.
The Community Redevelopment Agency (CRA) will provide an interest subsidy of five percentage points per annum for eligible loans. The purpose of this program is to promote new business growth, encourage commercial property owners to upgrade their properties by improving the external appearance of their businesses and encourage businesses to invest in their operations.
The result of such an effort will be to stop deterioration, stabilize property values, improve and upgrade the appearance of the area and facilitate and encourage redevelopment activity in the CRA district.
The following guidelines are applicable to this program:
- The program, at this time, is available only within a designated area of the CRA district, the boundaries of which are included in Exhibit B, and only to retail and office uses.
- The program is for commercial properties and businesses. There are three types of assistance loans available under this program including Exterior Improvement Loans, Business Loans and Building Expansion/New Construction Loans. In the event the applicant does not own the property, the owner of the property must approve of the improvements to be made to the building.
- The Exterior Improvement Loans for commercial properties include:
k. Security System
l. Exterior Lighting
m. Driveway Paving
n. Exterior Modification
o. Rotten Wood
p. Irrigation System
q. Or any other improvements consistent with the Downtown Davie (Western Theme) Development Manual's design criteria, where the business is located within the Downtown Davie (Western Theme) designated area (Exhibit C).
- Business Loans include interior improvements only. Such loans may consist of necessary fixed capital expenditures necessary for business operations. Business Loans must be combined with exterior loan improvements where a property does not meet applicable Town codes for exterior improvements.
- All loan amounts for assistance will be determined on a case-by-case basis by the CRA Board. A loan borrower may also increase its loan request to include a combination of the three loan programs.
- Building Expansion/New Construction Loans will be made to cover construction costs (excludes property acquisition costs).
- All construction work must be in compliance with applicable Town of Davie Building Codes and the Downtown Davie (Western Theme) Development Manual (where applicable). All contractors must be licensed by the Town of Davie.
- The borrower must sign an affidavit at the time of the loan closing that the funds will be used for the purposes intended.
- Loan proceeds may be used to pay applicable building permits.
- Loans or loan subsidies will be for a period of no longer than 5 years (60 months).
- Minimum loan amounts:
- Exterior Improvements - $5,000
- Business Loans - $10,000
- Building Expansion/New Construction - $20,000
- Funding for loans will be made on a case-by-case basis at the discretion of the CRA Board. Priority will be assigned based on the date of receipt of the application and shall be a factor in the determination of the CRA Board. Funding of such loans shall not conflict with the proposed redevelopment strategies and objectives of the CRA Redevelopment Plan. No funds will be disbursed for work completed prior to the application or closing of the loan.
- There will be no repayment agreement required between the CRA and the Borrower. The business owner will be permitted to sell his or her property within the loan subsidy period and will not be required to repay the interest which the CRA has paid.
- The decision as to whether the loans will be secured or unsecured will be made a the sole discretion of the lending institutions.
- The decision to approve any type of loan under this Program and determination of the creditworthiness of the applicant is made at the sole discretion of the lending institution.
- The lending institution will be responsible for monitoring the completed improvements of the loan subsidy programs. A credit investigation fee or an application fee will be required which may vary from Lender to Lender. The loan may require other fees including recording fees, security agreement, filing fees, documentary taxes and other fees.
- All loan interest subsidies must be approved by the CRA Board and will be determined on a case-by-case basis.
If you have any questions, please contact Cheryl Ellett at the CRA office, 954-797-1232.