Downtown Billings Revolving Loan Fund
Copy of Revolving Loan Fund Application Packet - PDF
Go to:
RLF Committee Members
Purpose:
To provide financial assistance in the form of loans to projects
within the downtown Urban Renewal Area established in 1976 and last
amended in 2004 (URA) that are consistent with the
Downtown Billings Improvement Plan (Framework Plan) that will:
(1)
Assist in the economic
revitalization and stabilization of the URA;
(2)
Attract and retain a
stable clientele population within the URA;
(3)
Stimulate private
investment within the URA;
(4)
Generate additional
property tax revenues within the URA; and
(5)
Encourage and
facilitate in the remodeling and restoration of historically
significant structures within the URA.
Fund
Guidelines:
·
Borrowers are
creditworthy.
·
Projects are
economically viable.
·
Projects are
consistent with the above stated purpose.
·
Funds requested are
leveraged with other sources, i.e. borrower’s equity (at least
20% required), other senior
debt, etc.
·
Requests are
accepted up to 20% of project cost capped at $250,000.
·
Loan terms address
each project’s needs with payments based on amortization of up to
twenty (20) years. Early maturities of up to ten (10) years may be
recommended for fund liquidity purposes. The interest rate is
annually adjusted and based upon 1% over prime rate minus 300 basis
points, with a floor of 5%. (Rate as of November 1, 2010 = 5.00%) The rate is
established in October each year. Additionally, loan payment
calculations may be based upon a loan rate amount that is
higher than the actual loan rate.
·
Loan repayment is
guaranteed by relevant beneficiaries and/or collateralized.
·
Loans may be made for
acquisition or construction of buildings, renovation and
rehabilitation, interior and exterior tenant improvements, equipment
and related improvements.
·
Priority will be given
to projects meeting above criteria, which have not been able to
secure traditional financing (so as to not compete with conventional
loans).
Application
Requirements:
·
Requests can be
considered on a “Pro Forma” basis subject to final submittal, where
appropriate.
·
Basic application
requirements:
Ø
Borrower’s financial
history (2-3 years)
Ø
Business plan and/or
project description
Ø
Project economics
(costs, revenues, etc.)
Ø
Project drawings and
or architectural plans
Ø
Project owner and
guarantor’s information
·
Names and relevant
background
·
Financial condition
(balance sheet and tax returns for two years).
Ø
Other information
supporting the “purpose”
Ø
Applicant will pay for
appraisals; credit reports and other related
(out of pocket) underwriting costs.
Approval
Process:
-
A minimum of four
weeks should be allowed for underwriting once the DBP representative
has confirmed that all documentation has been received.
-
The first loan review is before
the Revolving Loan Fund Application Committee
-
Following a positive
recommendation for the loan, four to six weeks should be allowed for
City Council scheduling and approval.
-
Once Council approval
has been obtained, loan funding arrangements are set up between the
Borrower and the City of Billings, directly. The actual
loan agreement does not include the Downtown Billings Partnership.
RLF Committee:
Steve Tostenrud -
Bank Representative - Chair -
stostenrud@fib.com
Pat Weber - City of
Billings Representative -
weberp@ci.billings.mt.us
Greg Krueger -
Downtown Billings Partnership Representative -
gregk@downtownbillings.com
Kim Olsen - Downtown
Property Owner Representative -
kimo@o2architects.net
Matt Robertson -
Real Estate Broker Representative (non voting) -
mrobertson@businessprop.com
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