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 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 at least 10% of the total project cost shall be provided in cash or owner equity by the business owner/applicant. The remaining 30% (financing gap) may be provided by the Preston RLF program. The RLF loan amount shall not exceed $25,000.
Eligible Projects include:
- Startup operating costs, inventory, and working capital
- Purchase of real estate and/or equipment directly related to the function of the business
- Exterior and/or interior work that improves the look and function of the building’s use for the intended purpose
- Loans to child care programs that create new slots or improve the quality of care in an existing program (see Childcare RLF Policy section)