On April 5, 2019 the Community Development Authority voted to place the loan program on hold. The village is reviewing the program and will report back to the CDA in Fall 2019.
The Business Loan Program has been established by the Community Development Authority (CDA) and Village Board to assist businesses and property owners in financing business expansion and startup projects, consistent with the economic development goals of the Village.
The Program is expected to be an important component of the Village of Shorewood economic development toolbox, which includes the facade grant program and redevelopment project incentives.
The benefits to participating Program businesses might include providing “first dollars” required by other lending organizations, lower than market interest rates, and potential to lower debt service payments during the startup period of a new venture.
Criteria for Granting
Criteria for granting or for limiting the amount of a requested loan include the following:
- Eligibility – the project must contribute proportionately to the achievement of Shorewood economic development goals. Priority will be given to first floor retail uses, specifically retail and restaurant uses, within the business corridor and first floor office uses that create daytime employment. Secondary priority will be given to other uses and upper floor uses within the business district. (See Attachment B for a list of preferred and non-preferred uses and Attachment C for the map of the business district).
- Need – the applicant must demonstrate that Program financing is necessary to make the project feasible and that alternate sources of funding needed to finance the project are not available on reasonable terms.
- Availability of Funds – a balance of sufficient funding authority (unloaned funds) should be available within the CDA program funding schedule parameters. Because of the scarcity of funds, the Program will be administered in a way that maximizes first floor street frontage activity within the business district. The loans supported by this Program are not intended to be an entitlement.