Commercial Incentive/Improvement Revolving Loan Fund
The City of Preston has had an Economic Development Incentive/Improvement Loan Program that was established by Ordinance #187 in August 1988 and amended in 1992 and 1994. In 2011 the Preston City Council approved that the Revolving loan fund would become a city policy administered by the Economic Development Authority and overseen by the City Council.
The purpose of the Preston Commercial Incentive/Improvement Revolving Loan Fund is to provide low interest improvement loans as an incentive for tenants and owners to upgrade the appearance and energy efficiency of commercial and industrial properties and the commercial area as a whole, to provide for relocation, encourage the creation of jobs and expansion of businesses, and provide generally, for the improvement of Preston’s economic health.
Eligibility
Revolving Loan funds are available to individual owners, partnerships, corporations, tenant operators or contract for deed purchasers of any legitimate business whose primary place of business is located within the City of Preston or within 2,000 feet of the City limits of the City of Preston. An applicant cannot be a lending institution, a not-for-profit institution or real estate developer. Loans shall be limited to one per year for any borrower or related activity. As a general rule, gap financing for building purchases is reserved for building owners that intend on using the building for their own business and not for speculation or to sublease the building.
Generally for a new start-up, at least 60% of the total project cost shall be funded privately or through a private lender and not less than 10% of the project shall be provided by the business owner/applicant in cash or owner equity. The remaining 30% (financing gap) may be provided by the Preston revolving loan funds. The Commercial Incentive/Improvement RLF loan amount shall not exceed $25,000, RLF loan shall exceed 40% of the project.
Eligible Improvements
Include all interior and exterior work on commercial buildings, such as:
Exterior:
- Cleaning, painting, staining and/or siding of exterior surfaces.
- Masonry repair or replacement and/or roofing.
- Repair or replacement of building facades, cornices, entrances, doors, windows, decorative details and awnings.
- Building identification, sign removal, repair or replacement.
- Parking lots, including lighting, surfacing and landscaping.
- Other items that are viewed necessary to compliment exterior.
Interior:
- Fixed interior improvements including the repair and/or decoration of walls, ceiling, floors, lighting, windows, doors entrances, electrical, plumbing, mechanical, air conditioning, architectural change, and energy improvements.
- Soft Costs: Reasonable engineering, legal, architectural design and other related service fees necessary to the plan, including the cost of building permits and energy audits.