Loan Amount / Terms

  • All loans are subject to availability of funds.
  • The average loan is $40,000.
  • The maximum city loan amount is $100,000.
  • The minimum city loan amount is $5,000.

Interest Rate & Fees

Interest rate is prime (currently 3.5%) plus 1% based on the published Wall Street Journal Prime Rate at time of approval (5.5%).

The maximum term of the loan is ten years or 120 months of equal installments. However, shorter terms are more common.


Collateral is property accepted as security for a loan. All loans are secured through collateral. Preference is 75% loan to value ratio ($75 loaned to $100 of collateral); however, loans could be based on loan to value ratio of 100%.

  • Acceptable forms of collateral are required and based on commonly-accepted definitions.
  • The city may be willing to accept a second mortgage position in projects where a private lender is involved.

You will be responsible for obtaining an attorney to assist in securing the city's lien on the collateral.

Loan Repayment

  • The last 25% of a loan may be forgiven if the first 75% is paid in full and the loan status remained in good standing throughout the original term. (The IRS has determined that any portion of a loan forgiven may be counted as income to the borrower and be subject to income taxes. Please refer to a tax professional to determine your income tax liability for any loan or portion of that is forgiven. )
  • Loan payments are due on the first day of the month.
  • A late payment will be assessed at 4% of the payment amount after the loan becomes 15 days overdue.
  • If the loan payment becomes 30 days overdue, the city will implement procedures for the collection of delinquent loans.
  • Loans may be prepaid without penalty.
    Please be advised, pursuant to IRS regulations, the city will issue a 1099 for debt that is forgiven and that it will be up to the recipient of the 1099 to consult with a tax adviser to the determine the tax consequences. The city does not provide tax advice.

Credit History

Preference is given to borrowers with a good credit rating; however, the city will consider applicants with credit ratings showing a history of accounts up to 30 days past due.

Applicants with bankruptcy or repossessions listed on a credit report will, in most cases, be considered too great a credit risk for the program.

Job Creation

One job must be created or retained for each $35,000 borrowed.

The business must make a good faith effort, within established guidelines, to make at least 51% of the jobs (created or retained) available to low- to moderate-income people.