Departments

Community Services

Community and Business

Economic Development

The Department provides funding for five economic development loan programs. The primary objectives include: promoting business creation, attraction, and growth; creating employment opportunities; eliminating blight, environmental contamination, and vacant and underutilized properties; and, maximizing funding effectiveness by seeking well-conceived projects with solid collateral and reasonable risk.

BROWNFIELDS RECLAMATION FUND
This program provides financing for the redevelopment of brownfields. Eligible activities include the acquisition, preparation, environmental remediation, and construction or rehabilitation of commercial and industrial property. The program requires applicants to have a reuse plan, an identified end-user for each project, and meet CDBG requirements (e.g., job creation, Davis-Bacon). The maximum loan amount is $1.5 million; the term is 36 months; and, the interest rate is based on the PIDA rate for state enterprise zones.

SMALL BUSINESS CAPITAL FUND
This program is intended to support the activities of small businesses. Eligible activities include working capital, equipment, renovations, and bridge financing. To be eligible, a business must have less than 15 employees or $1,000,000 in annual sales. The maximum loan is $75,000, the term is 30 months and the interest rate is equal to the PIDA rate for state enterprise zones.

ECONOMIC DEVELOPMENT REVOLVING LOAN FUND
This program provides funding when there is no other available. Eligible activities include acquisition of real property, machinery and equipment, and working capital. The maximum term of the loan varies with the type of asset being financed. The interest rate is set on a project-by-project basis, although it is typically below the prime rate.

REVITALIZATION SUBSIDY FUND
This program funds the reclamation of vacant and underutilized properties, and "write-down" redevelopment costs. Eligible activities include the acquisition, preparation, environmental remediation, and the construction or rehabilitation of commercial and industrial property. An environmental assessment and a remediation plan may be required. The maximum loan amount is $100,000, the term is 10 years and the interest rate is 3 percent.

REVITALIZATION LOAN FUND
(HUD SECTION 108)
The purpose of this program is to help fund the redevelopment of blighted sites. The maximum loan amount is $2.5 million. Eligible activities include land acquisition, clearance, infrastructure, environmental remediation, and the renovation or construction of structures. The program requires applicants to have a reuse plan, an identified end-user, and meet CDBG requirements (e.g., job creation, Davis-Bacon). This program requires the pledging of the County's annual CDBG entitlement as loan collateral. As a result, applicants need to demonstrate that the County will be held harmless and made whole in case of a loan default. To this end, a letter of credit for the balance of annual outstanding loan balance (or a similar instrument) will be required. The loan term is up to 20 years (negotiable). The interest rate is set by HUD based on its cost of funds. The County may also require an interest rate premium up to two percent (above and beyond HUD's rate) to help defray risks and/or administration costs.