Revitalizing Businesses: Midvale Main Business Loan Program
The Redevelopment Agency of Midvale City (RDA) proudly introduces the Midvale Main Business Loan Program, dedicated to fostering the growth and enhancement of businesses within the Main Street Project Area. This initiative is aimed at stimulating business development and expansion by offering loans to businesses operating in or relocating to Midvale's Main Street Project Area. These businesses must demonstrate a commitment to creating a vibrant atmosphere along Midvale Main, contributing to redevelopment, fostering arts and culture, preserving history, and providing spaces for community engagement.
Eligibility Criteria
To qualify for the Midvale Main Business Loan Program, businesses must meet specific criteria, including existing within the Main Street Project Area, relocating to the area, or being a startup in the vicinity. Additional eligibility requirements include current property taxes, a valid business license, and a clean financial history. Public benefit incentives are in place, offering reduced interest rates for projects that exceed the minimum public benefit score.
Loan Types & Use of Funds
The program caters to both startup businesses (0-3 years old) and existing businesses (3+ years old). Loans ranging from $25,000 to $250,000 can be utilized for various purposes such as inventory, marketing, materials, space, labor, supplies, operating maintenance, physical improvement, and real estate purchases.
Terms and Conditions
The terms and conditions for loans vary based on the amount and purpose. Loans for startup costs and expansion expenses have a standard term of 6 months to 5 years, while loans for physical improvement and real estate purchases under $25,000 or over $25,000 have different terms. Collateral requirements, background checks, and credit score considerations are outlined for each category.
Public Benefit Criteria
Projects are evaluated based on public benefit criteria, including economic impact, public amenity, permanent job creation, and street activation. Businesses can earn a reduced interest rate for projects that surpass the minimum public benefit score, fostering a commitment to community enhancement.
Loan Evaluation Process
The Midvale Redevelopment Agency Board evaluates loan applications, considering factors such as financial feasibility, undue financial benefits to the applicant, identification of capital sources, and adherence to public benefit criteria. The agency encourages private lending institution participation and may subordinate its security interest to private lenders.
Application Process
The application process involves two parts – Part A and Part B. Successful completion of Part A leads to the submission of Part B along with a non-refundable application fee. The loan evaluation process ensures that the project aligns with the program's goals and community benefit.
The Midvale Main Business Loan Program is not just about financial support; it's about fostering a thriving business community, preserving the city's history, and creating an environment where businesses can flourish. As Midvale redefines its Main Street, the program stands as a testament to the city's commitment to economic growth, community engagement, and a vibrant future.
