The Cuyahoga County Department of Development offers several loan programs designed for a broad range of businesses. Some of these loans apply to real estate developers who own commercial property within Cuyahoga County or are looking to purchase or develop commercial property within the County. These loans offer an excellent opportunity for developers to obtain competitive interest rates that may be lower than those available through conventional financing. They also offer developers the ability to qualify to have some percentage of the debt forgiven.
One of these loan programs is called the Redevelopment and Modernization Loan Program. This loan is designed to provide financing for the acquisition, up to 25% of the loan value, of an existing building; for site improvements, including tenant improvements; for the modernization of a building; for the abatement of asbestos or lead paint; or for the demolition of a building.
The maximum loan amount is $1 million, with a term up to ten years at 4% interest. In order to qualify, the borrower must be the property owner, demonstrate the ability to repay the loan, and maintain adequate collateral and acceptable credit. Additionally, up to a total of 35% of the loan can be forgiven based on multiple factors, such as location (if the project is located in a Business Attraction Agreement Community or an identified area of economic growth), jobs created and the use of Cuyahoga County vendors for the project.
Another loan that can benefit real estate developers in Cuyahoga County is the County’s Redevelopment Ready Loan Program. This loan is intended to finance a property’s environmental cleanup and remediation, infrastructure costs, or the demolition and site clearance of abandoned, vacant and otherwise underutilized properties located within the County. It can also be used for the acquisition of a specified property, up to 35% of the total loan value.
Just as with the Redevelopment and Modernization Loan Program, a borrower utilizing the Redevelopment Ready Loan Program must be the owner of the property, and the loan amount can be up $1 million, with terms of up to 10 years at 4% interest. However, with this loan, up to 40% may be forgiven based on qualifying factors such as environmental cleanup, jobs created, and use of Cuyahoga County vendors.
If you are a real estate developer looking to purchase or renovate a commercial property in Cuyahoga County, it would be well worth your time to inquire about these loans. For additional information on these and other loan programs offered by the Cuyahoga County Department of Development, visit www.development.cuyahogacounty.us or call Skoda Minotti’s Real Estate Services at 440-449-6800.