To encourage exterior and interior renovations to commercial buildings in the Milan Downtown Development Authority District, participating lending institutions are making $400,000 available in low interest loans. At least $100,000 available is from each participating financial institution. At this time, Monroe Bank and Trust has participated for over six years. Other local lenders may also be involved. Please contact the DDA for a list.

This program will be offered for a limited time, and may be expanded at the option of the Milan Downtown Development Authority (hereafter referred to as the DDA and the participating lending institutions.

Improvements should be sensitive to the historic commercial architectural character to create a positive visual impact for downtown Milan.  This will increase the economic viability by providing a more attractive climate for investment and inviting new merchants, services and professionals into the downtown.

Owners of commercial buildings within the DDA District and operators of businesses located within the DDA District are eligible to participate in the loan program subject to the satisfaction of DDA Loan Program requirements and of the applicable lenders’ loan approval criteria.

Eligible improvements include but are not limited to:

signs and awnings

painting

window repair/replacement        

architectural services     

structural alterations

masonry work

roof repairs       

energy conservation

INTERIOR

painting                             

plumbing

cleaning     

electrical

carpet & draperies

stationary fixtures

design assistance

In view of the importance of visual impact on the economic viability of the downtown area, the DDA Loan Review Committee will typically require that a minimum of fifty percent (50%) of the loan proceeds be utilized for improvements to the main façade of the building at issue.  The “main façade” is defined as the face of the building adjacent to the street to which the building’s address corresponds.  The DDA and it’s Loan Review Committee reserve the right to approve applications indicating that less than fifty percent (50%) of the loan proceeds will be devoted to main façade improvements.  Instances where such approval may be granted include, but are not limited to, demonstration by applicant that appropriate façade improvements can be accomplished utilizing a lesser percentage of the total loan proceeds.

The Milan DDA and the Milan DDA Loan Review Committee reserve the right to terminate or modify the loan program, program guidelines, and/or application forms and requirements at any time and to impose such additional requirements or guidelines as may, in the DDA Board’s sole discretion, be in the best interest of the DDA and/or the Milan Downtown Area.

A. General Loan Terms

1.      The making or denial of any loan will be at the discretion of the applicable participating financial institution.  Standard lending practices and requirements shall be adhered to.  Participating financial institutions have represented that the following terms will be made available as of March 1999:

a.       Monroe Bank & Trust:

Prime rate for all loan amounts; out of pocket expenses paid by borrower; no additional fees.

2.   Collateral requirements may vary at each institution.

3.      Applicant may select the lending institution of their choice from Item 1 above.

4.       Terms of the repayment to be determined by mutual agreement of the owner and the lending institution based on the amount of loan, and a cash flow analysis.

5.       The documentation required for any loan will be determined by the applicable financial institution and may vary from applicant to applicant.  The following items will typically be required by either financial institution: a completed Milan Downtown Development Authority Loan Program Application Form approved by the Milan Development Office as meeting these Loan Program Guidelines; business and personal financial statements and tax returns; synopsis of credit or credit report; and cost estimates and/or contracts from contractors.

6.       Loan proceeds will be disbursed on a draw basis in accordance with the applicable participating financial institution’s loan procedures.  Those procedures may vary from institution to institution and from loan to loan.  Each institution will typically require, at minimum, written documentation that the project has, to date, been subject to all the required code inspections and has satisfied all applicable code requirements.  Participation in the DDA Loan Program requires compliance and satisfaction of all applicable City of Milan codes and ordinances.

(734) 439-0404 Phone (734) 439-1575 Fax

or E-Mail Rebecca Mangani

9/97 (updated 12/07/04) Low Interest Loan Procedures and Application- stack card