Business Finance and Incentives

Direct TIF (Tax Increment Funds) Loan Program (Deferred Loan)

OVERVIEW

This program is designed to assist new and existing small businesses in an urban renewal area (URA). The program complements other incentive loan programs designed to assist businesses within a particular URA.

The Direct TIF Loan Program provides financing for the gap between project cost and private financing. Primary objectives of the program are to improve the physical appearance of the targeted area, and create wealth within the community.

Eligible Purpose

Funding for this program is available primarily through tax increment and therefore is tied to the redevelopment and physical improvements of real estate projects within an urban renewal area.

Loan Program Guidelines

• Loan amount is generally open depending on available resources in the urban renewal area.
• Flexible, but the program encourages one job per $25,000 loaned.
• Interest rate: generally below market and calculated at the end of the deferral period.
• Fee: waived
• The loan term varies. Normally up to seven years with the possibility of the first two years’ payments deferred, followed by a period of interest-only payments to allow start-up companies to build a cash cushion.
• Borrower must provide a minimum of 10% of total project cost.
• Borrower must have reasonable credit.
• Principals of the business are required to have management and/or industry experience.

For more information call us at 503-823-3321 or email Neal Fitzgerald.

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