NCR FACADE RENOVATION FUND

The Façade Renovation Fund is designed to encourage storefront improvements in the designated business districts of the Neighborhood Commercial Revitalization (NCR) Program. City loan proceeds are Federal Funds, all Federal regulations must be followed. Borrower acknowledges that written authorization from the City is required prior to starting any project using Federal funds. Funding is contingent upon the availability of Federal Funds.

ELIGIBLE APPLICANTS AND IMPROVEMENTS

Business and property owners located on one of the 15 NCR strips (see map on Neighborhood Commercial Revitalization Program sheet) may apply. Funds are used for exterior renovation to commercial buildings only.

ARCHITECTURAL DESIGN

The NCR Office and the Neighborhood Design Center (NDC) shall review all renovation plans for compliance with design and signage standards. Exterior design services are available from NDC at 415 E. Main Street (221-5001).

FINANCING TERMS

This Financing package provides a direct loan, not to exceed $7,500 with an interest rate established at 0%. Loan term shall not exceed five (5) years. The $7,500 loan maximum is applied on a "per building" basis. All loans must be adequately secured, preferably with real estate collateral.

LOAN APPROVAL PROCEDURE

A Loan Officer in the Economic Development Division works with each applicant to create a loan package before funds can be committed to a project. The applicant must submit an NCR application, cost estimates and appropriate financial statements. The City makes the loan decision and notifies all parties. All financing, project design approval, ready-to-execute contract documents, insurance and adequate appraisal coverage must be in place at closing.

CONTRACT REQUIREMENTS

Any subcontracts in excess of $2,000 must comply with Federal Labor Standards Provisions, including Federal Prevailing Wage Rates. The Economic Development Division provides technical assistance toward these Federal compliance activities.

Contacts:
The Economic Development Division
(614) 645-8644 or 645-8172

The Community Captial Development Corporation
(614) 645-3873

WORKING CAPITAL LOAN FUND

The Working Capital Loan Fund (WC Fund) provides short-term, below market interest rate loans to local firms for eligible working capital purposes. City loan proceeds are federal funds, all federal regulations must be followed. Borrower acknowledges that written authorization from the City is required prior to starting any project using federal funds. Funding is contingent upon the availability of federal funds.

ELIGIBILITY REQUIREMENTS

• Firms with a business operation physically located within the corporate limits of the City of Columbus are eligible.
• Businesses less than a year old must show strong evidence of market potential, applicable operational and management experience and the ability to provide an appropriate level of capital resources.
• Applicants must be able to demonstrate that the loan will result in permanent, full-time job creation in their business.
• One permanent, full-time job equivalent created for every $30,000 of city loan funds is required; the maximum amount of City loan participation takes this requirement into consideration.
• Businesses must make good faith efforts to match job creation and subsequent outreach efforts to those job applicants who qualify as members of low and moderate income households.
• Any loan application previously rejected may not resubmit for a one (1) year period following the rejection.

FINANCING TERMS

• A minimum of $25,000 in City participation and a maximum of $50,000 in City participation.
• Maximum City loan terms of five (5) years. Interest rates are generally below market rates. Business and personal assets are required as collateral to provide adequate loan security.
• The City is willing to subordinate its collateral position to primary lenders. Mortgages on real property and a security interest on business assets are commonly provided as security for working capital.
• The borrower is encouraged to select the conventional lender of his/her choice.

SELECTION CRITERIA

Loan approval or denial is based on an overall evaluation of selection criteria, which includes, but is not limited to, the following factors:

• Credit worthiness, business and personal.
• Business plan is reasonable and demonstrates ability to perform and repay the loan.
• Management capability and capacity.
• Leverage ratio of public to private loan participation.
• Job generation within two (2) years (at least one permanent, full-time equivalent job per $30,000 of City investment).
• Collateral value.

APPLICATION PROCEDURES

Fifty-one percent (51%) of jobs created must be held by individuals from low and moderate income households.

Average loan processing time is 60 days—completed applications are reviewed by credit committee.

The City shall approve or reject the loan package as a result of its credit analysis and selection criteria. The major factors considered include, but are not limited to: credit history, ability to repay, historical business performance, reasonableness of projections and collateral. The applicant will receive written notification of the City’s loan decision.

The loan package consists of the City’s Loan Application, and all necessary materials requested by the City for the credit evaluation process.

Contacts:
The Office of Financial Assistance
(614) 645-8668

The Community Captial Development Corporation
(614) 645-3873

NCR COMMERCIAL IMPROVEMENT LOAN FUND

The Commercial Improvement Loan Fund (CILF) is designed to encourage storefront improvements in designated business districts of the Neighborhood Commercial Revitalization (NCR) Program. Business and property owners located on one of the 15 NCR strips (see map on NCR Program sheet) may apply. Funds may be used for exterior renovation, excluding residential rehabilitation.

ARCHITECTURAL DESIGN

The NCR Office and the Neighborhood Design Center (NDC) shall review all renovation plans for compliance with design and signage standards. Exterior design services are available at the NDC at 415 E. Main Street (221-5001).

FINANCING TERMS/
LOAN APPROVAL PROCEDURES

This financing package provides a low-interest loan, from $7,500 to $25,000, with 10% equity required from the borrower. The term of the loan can be from ten (10) to fifteen (15) years. The $25,000 loan maximum is applied on a "per building" basis. All loans must be adequately secured, preferably with real estate collateral.

A loan officer in the Economic Development Division works with each applicant to create a loan package that must be presented and approved by an external loan committee before funds can be committed to a project. The applicant must submit a CILF application, including cost estimates and appropriate financial statements. The City will evaluate both building cash flow and applicant’s financial condition in making a loan participation decision. The City reserves the right to reject any loan. If approved, the City will notify the applicant’s primary lender. At closing, evidence of all sources of financing must be in place, approved final project design, ready-to-execute contract documents, acceptable insurance levels, and adequate appraisal coverage.

• Any subcontract in excess of $2,000 must comply with Federal Labor Standards Provisions, including Federal Prevailing Wage Rates. The Economic Development Division can provide technical assistance toward these Federal compliance activities.

Contacts:
The Economic Development Division
(614) 645-8644 or 645-8172

The Community Captial Development Corporation
(614) 645-3873

NCR INVESTMENT FUND

It is the goal of the City’s Neighborhood Commercial Revitalization (NCR) Program to stimulate business development along designated NCR areas. The City has allocated funds through the Columbus Community Development Block Grant Program (CDBG) to establish the NCR Investment Fund, a financing tool to encourage reinvestment.

For applicants participating in the NCR Investment Fund, the maximum loan is $200,000. Final loan amount, terms, and rates will vary according to project financing needs. Funds may be provided in a subordinate position to other lenders. This financing tool is designated to encourage substantial commercial rehabilitation, acquisition, and/or new construction.

WHO IS ELIGIBLE?

Individuals, investors, developers and corporations interested in acquiring and renovating property within the 15 NCR districts are eligible to receive the loan. Interested applicants should contact the Office of Financial Assistance to receive a loan application, information about project financing and eligibility or to meet with a loan officer.

Proposals are reviewed on the basis of: private investment leverage, job generation, tax revenue growth, impact on the NCR corridor, compliance with design and signage standards, the feasibility of project financing, quality of collateral, and the availability of funds. The selected applicant is required to obtain firm commitment(s) for all sources of financing prior to final City commitment. A Loan Officer at Community Capital Development Corporation works with each applicant to create a loan package that must be presented and approved by an external loan committee before funds are committed to a project.

Contacts:
The Economic Development Division
(614) 645-8644 or 645-8172

The Community Captial Development Corporation
(614) 645-3873

NCR STOREFRONT RENOVATION GRANT

The Storefront Renovation Grant fund is designed to encourage storefront renovation in the business districts designated under the Neighborhood Commercial Revitalization (NCR) Program. City loans proceeds are Federal Funds, all Federal regulations must be followed. Borrower acknowledges written authorization from the City is required prior to starting any project using Federal funds. Funding is contingent upon the availability of Federal Funds.

ELIGIBLE IMPROVEMENTS

Funds may be used for exterior renovation only. Projects may include one or several improvement elements such as: new sign, awning(s), facade painting, exterior lighting, window repair/replacement, etc.

ARCHITECTURAL DESIGN

The NCR staff and the Neighborhood Design Center (NDC) reviews all renovation plans for compliance with design and signage standards. Design services are available from NDC at 415 E. Main Street (221-5001).

ELIGIBLE PARTICIPANTS

Property owners and small independent businesses that are tenants of commercial use properties located within the NCR area may apply for funds. FINANCING TERMS Grant amounts from $250 to $3,000 can be requested. Applicants must match the grant amount with cash. The grant may be treated as income subject to Federal Income Tax. The City of Columbus is not liable for any tax implications resulting from the extension of this grant through the Storefront Renovation Grant Fund. See your tax advisor for clarification.

GRANT APPROVAL PROCESS

The applicant must submit a grant application, contractor cost estimates for proposed work, proof of property ownership or lease and evidence of availability of the cash match. The submittal of financial information is not required.

CONTRACT REQUIREMENTS

Any subcontract in excess of $2,000 must comply with Federal Labor Standards Provisions, including Federal Prevailing Wage Rates. The Economic Development Division can provide technical assistance toward these Federal compliance activities.

Contacts:
The Economic Development Division
(614) 645-8644 or 645-8172

THE OFFICE OF FINANCIAL ASSISTANCE

City of Columbus
Mayor Michael B. Coleman
Mark Barbash, Director

Department of Development Economic Development Division
Office of Business Assistance
109 N. Front Street 1st Floor
Columbus, Ohio 43215-9031

Photos courtesy of:
Columbus Neighborhood Design Assistance Center