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Downtown Opportunity Fund

The Downtown Opportunity Fund is a revitalization incentive program from the City of Montrose and the Montrose Downtown Development Authority (DDA). Through the program, property and business owners can receive very low-interest loans, up to $20,000, to complete revitalization projects in the downtown district.The lending process is designed to be simple. The Fund is targeted towards improvement projects that enhance the safety, cleanliness, and appeal of downtown properties.

Criteria

  • Projects must be commercial buildings, not residential. Multi-family residential is eligible.
  • Projects must be located within the DDA boundaries.
  • Projects must comply with City of Montrose planning and building codes.
  • Applicant must provide all necessary documentation.
  • Loan dollars can only be used for eligible expenses.
  • A detailed estimate of total project work from licensed contractors is required.
  • Lessees may receive loans for improvements to leased property, but must have written property owner approval.

Eligible Items

  • Facade improvements
  • Cleaning of facade materials, painting, brick pointing, and other building improvements
  • Removal and replacement of signage or new signage
  • Replacement, repair, and renovation of roofs
  • Corrections of code deficiencies
  • Improvement or replacement of electrical, plumbing, heating, ventilation, and/or air conditioning systems
  • Modifications to improve accessibility to businesses
  • Architectural fees and labor expenses for eligible improvements

Ineligible Items

  • Non-permanent equipment and merchandising fixtures
  • Building permit fees and other fees
  • Demolition or acquisition of property
  • Working capital

Terms

  • Interest rates will be set at 1/2 of the Prime Rate with a maximum of 3%. 
  • Minimum loan is $2,500.
  • Maximum loan is $20,000.
  • Personal guaranty is required by all owners with a 20% or more stake in the company or property.
  • Repayment terms will be a maximum of seven years, with five years being the standard loan term.

Process

Step 1: Pre-Application and Initial Project Meeting

  • Fill out the on-line Pre-Application Form at www.montrosedowntown.com/fund.  
  • The DDA Executive Director will review the Pre-Application and contact applicants to set up an initial meeting with a Fund Administrator and the applicant.
  • The Director and Fund Administrator will determine initial eligibility and, if eligible, provide the applicant with a full application.

Step 2: Submit an Application and Supporting Materials

  • Provide the following information for review of the loan request:
    • Completed Application
    • Business Plan
    • At least 2 years financial records and/or projections including past tax returns when available.
    • Professional estimate for project work
    • Drawings, renderings, color palettes, or other relevant project materials
    • Credit Report Release and Liability Waiver

Step 3: Review Committee

  • The request for funding will be reviewed by the Fund Administrator and a recommendation made to the Review Committee.

Step 4: Documentation

  • If approved, the Fund Administrator will set up a meeting with the applicant to sign all the necessary documents.

Step 5: Monitoring and Quarterly Review Meetings

The above is not intended to be an exhaustive description of the underwriting process but provides an idea of some of the review factors. In all cases a well written business plan, accompanied by complete and accurate financial statements will provide the best opportunity for funding.

We do not discriminate on the basis of race, color, religion, gender, marital status, disability, age, national origin or sexual orientation in services or accommodations offered or provided to our employees, clients or guests.

Default and delinquency terms along with collection procedures are described in detail in the Opportunity Fund Administration Overview.