Purpose:
The purpose of this program is to stimulate successful business development and expansion as well as job creation in the Southeast quadrant of the City of Raleigh. The program assists businesses that have limited access to financing through conventional means or other government guaranteed sponsored programs.

Eligibility:

1. Businesses primarily located within the target area of Southeast Raleigh as defined by the City of Raleigh Planning Districts Map Dated 6/93.
2. Applicants may be required to successfully complete the Small Business Technology Development Center (SBTDC) technical assistance program.
3. Applicants must be a for-profit business entity whose net worth cannot exceed $6 million and its net profit after taxes must average less than $2 million during the previous two years. This definition of small business is consistent with guidelines established by the Small Business Administration of the U.S. Department of Commerce.
4. Applicants must have an equity contribution in a start-up business of 15%.
5. Individuals with an ownership position of 20% or greater of the outstanding shares of stock of the business will be required to execute an unconditional guaranty agreement for the full amount of the loan.

Use of Funds:

1. Working capital or operational funds.
2. Purchase of equipment, commercial use vehicles or machinery.
3. Improvement of owner occupied commercial property. (Owner must occupy 50% or more of the total space.)
4. Expansion of business services or products.

Amount of Loans:
Maximum = $75,000
Minimum = $10,000

Should market conditions change or in the event of an applicant with extraordinary conditions, an alternative loan may be considered. All loans are subject to availability.

Loan Term:
Maximum term = 5 years.

Interest Rate:
Prime interest rate plus up to a maximum 2 percentage point spread based on term of loan. All loans will accrue on a daily basis at a floating interest rate. Interest rates will be quoted based on the Wall Street Prime Rate plus a spread based on the maturity date of the loan.

For information and an application for financing under this program,
contact the City of Raleigh Business Assistance Program Manager at 919-890-3673.

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The City of Raleigh’s Façade Grant Program helps businesses and property owners in older commercial areas upgrade and improve their building’s exterior appearance.  Since the program’s inception in the early 1980s, it has assisted in the rehabilitation of more than 100 buildings, increasing their attractiveness to new customers and contributing a positive influence toward revitalization of their respective areas.

The Program’s Goals

• To promote façade rehabilitation of commercial and mixed use buildings in the downtown area, commercial areas adjacent to the downtown, and older pedestrian business districts.
• To preserve special characteristics of these areas by helping owners make quality building improvements that foster a sense of place and overall consistent image for an area.
• To compliment other revitalization efforts, such as sidewalk and landscaping improvements.
• To promote an attractive environment for new investment and business activity.

Assistance Programs

Façade Rehabilitation Grants
Grant rebates for a portion of exterior rehabilitation costs are available on a first-come, first-serve basis for buildings located in the downtown or in one of the pedestrian business overlay districts for which streetscape guidelines have developed.  (Routine maintenance, as opposed to highly visible improvements, is not eligible for grant funding.)  Funds are available once per address every ten years.

Eligible improvements include:
• The removal of false fronts (such as aluminum panels).
• Repair or replacement of windows, doors, and cornices.
• Repair or replacement of façade materials.
• New, more appropriate signage.
• New awnings.
• Exterior painting (when part of a larger rehab effort).

Grant Types and Amounts
1) Downtown Core Rehabilitation Grants
Grant rebates of up to $10,000 or 50 percent of exterior rehabilitation costs (whichever is less) are available for projects located in the City’s Downtown Core, which is made up of existing buildings located on the following downtown streets:
• Fayetteville Street Mall
• South Salisbury Street
• South Wilmington Street
• The east and west 000 blocks of Hargett Street, Martin Street, and Davie Street

In order to qualify for these grants, projects requesting these grants must comply with the design guidelines of the Raleigh Urban Design Handbook.  These are special one-time grants available on a first come/first served basis until June 30, 2008.

2) Downtown and Pedestrian Business Overlay District Façade Grants
Grant rebates of up to $5,000 or 50 percent of exterior rehabilitation costs (whichever is less) are available for buildings in other areas of Downtown or in one of the Pedestrian Business Overlay Districts for which streetscape guidelines have developed (such as Glenwood South).  Review and approval of proposed rehabilitation projects are based upon the design guidelines or streetscape plans for the area in which the project is located.

Design Assistance
At no cost to program participants, concept drawings and design suggestions can be prepared by an architectural consultant showing ideas for exterior improvements.  These improvement suggestions are tailored to be relatively quick and inexpensive to implement, yet they can dramatically upgrade the appearance of the building.  This assistance is dependent on the use of a façade grant.

Program Eligibility
Property owners or business tenants in the Downtown or one of the Pedestrian Business Overlay Districts may apply.  Tenant applications must have the building owner’s written approval.  All applications must be submitted for approval prior to the beginning of construction.

All rehabilitation work must comply with all applicable City codes, ordinances, and policies, including but limited to building code requirements, local ordinances (including historic district guidelines, where applicable) and established design standards for the designated area.

Work must fully follow plans and renderings as approved by the City of Raleigh Planning Department.  Renovations must be completed within twelve months of the date of project approval and an agreement to maintain the façade for a period of ten years must be signed by the applicant.  Once work is completed and reviewed, the applicant must submit proof of payment for rehabilitation (usually in the form of paid invoices) in order for the City to provide reimbursement.

For More Information
Contact: Carter Pettibone, Planner II
Planning Department
133 Fayetteville Street Mall, Suite 100
Raleigh, NC 27601
919-807-8482

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