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Low Interest Loan Program
* Marion has a low interest Loan Program for the funding of revitalizing Marion Main Street business district.
* The low interest Loan Program seeks to stimulate investment in the commercial structures of Marion Main Street business district by providing affordable financing for establishing businesses downtown.
* Funds are available to qualified existing, new, or relocating businesses provided they meet the standard commercial loan underwriting guidelines established by one of the following Banks of the borrowers choosing.
The Bank of Marion Banterra Bank
South Pointe Bank Old National
Fifth Third Bank US Bank
Union Planters Bank Farmer's State Bank
* The term limits of the business Loan Program is not to exceed 7 years.
* The Loan Program is established for new loans only. Existing loans do not qualify.
* Up to $100,000 can be used to establish or expand a business within the above boundaries.
* Single family residences located within the boundaries are not eligible for the funds unless the home has been zoned commercial and at least 50% of the first floor is utilized for the purpose of commercial usage.
* Those eligible will be businesses or property owners currently operating within boundaries as outlined in the attached City Ordinance, Section 3, or businesses seeking to start, expand or relocate within the boundaries and are members of Marion Main Street (Being a member of Marion Main Street does not guarantee loan approval).
* New structures proposed for vacant lots must meet with good taste and within the standards of the surrounding business district and approved by Marion Main Street.
* Marion Main Street Design Committee along with the Main Street Program Manager, for the purpose of the Loan Program, must be consulted in an effort to ensure the facade is in keeping with the surrounding buildings/area.
HOW DO I APPLY FOR A LOAN?
To qualify for a low interest loan, you must be and remain, a member of Marion Main Street ($100 annually, non- refundable). When you meet all of the above conditions, including arranged for a loan from one of the afore listed Banks, you should request the bank to provide a signed letter addressed to Bob Stein, Program manager, Marion Main Street. The
letter should state the date of the loan, amount of the loan (unless it exceeds $100,000), rate of interest, the address where the loan will be utilized, state the intended purpose of the loan and provide the information as stated in Section 11 item 1 of the attached.
Marion Main Street will submit the request to the City of Marion for approval at the City Council Meeting (usually held on Monday Nights at 7:30 pm). You will be required to be present at the City Council Meeting when the approval will be acted upon.
When approved by Marion City Council, the City of Marion will reimburse the loan recipient 2.5% of the loan rate amortized. (The City will reimburse the loan recipient on a quarterly basis with proof of monthly payment). The 2.5% off the loan rate, when approved by the City, will be between the loan recipient and the City.
Ordinance #1899
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MARION, ILLINOIS:
Section 1. To encourage the revitalization of the downtown business district there is hereby established a program whereby a portion of the interest paid on money borrowed from a lending institution by an eligible business shall be reimbursed by the City.
Section 2. An eligible business is a business that maintains membership in the Marion Main Street organization and is a new business or existing business in the downtown business district.
Section 3. The downtown business district is that area bounded on the south by College Street, the east by Buchanan Street, the north by White Street and the west by Court Street. The district will include both sides of the streets, constituting the boundary of the district.
Section 4. Any business that has been heretofore a participant in the program but is outside the boundaries designated in Section 3 above shall continue in the program.
Section 5. An eligible business upon prior approval of the City Council shall be reimbursed a portion of the interest paid on a loan from a lending institution the proceeds of which are used in the creation of a new business or the expansion of an existing business.
Section 6 Regardless of the amount of the individual loan reimbursement of
a portion of the interest paid thereon shall be limited to that paid on the maximum amount of $1 00,000 amortized not to exceed a term of seven years, the length of the term of the loan not withstanding.
Section 7. The City will reimburse the eligible business interest paid on such loan at the rate of2 1/2% of the amount of the loan amortized.
Section 8. Late fees, penalties or additional interest due on such loan shall not qualify for reimbursement.
Section 9. In the event the loan to an eligible business participating in the interest reimbursement program is refinanced the balance of the loan for which interest is to be reimbursed shall not be increased nor shall the term for which reimbursement is to be paid to be increased. A loan by the City of Marion Revolving Loan Fund shall not qualify as a loan eligible for interest reimbursement.
Section 10. Total outstanding eligible loans for which reimbursement of interest is available shall not exceed $1,000,000. In no event shall the City be obligated to pay more than $25,000 annually in reimbursement of interest. The original amount of an eligible loan for which reimbursement of interest is available shall not be increased for the purpose of this program during the term for which the City is committed to pay interest on such loan.
Section 11. The reimbursement of interest provided herein, shall be on a quarterly calendar year basis. The eligible business to receive such reimbursement shall submit to the City Treasurer all required information by the 30th day of the month following the close of the quarter. For such interest to be reimbursement the following information shall be provided:
(1) A signed copy of the loan agreement and loan amortization schedule at time of acceptance into the program.
(2) Proof of payment from the lending institution showing the amount of interest paid and dates paid for the quarter.
Section 12. This program shall remain in effect until such time as the City
Council shall end the program. In the event the program is ended, the City will continue its commitment to active participants in the program for the remaining life of the outstanding loans.
PASSED BY THE CITY COUNCIL OF THE CITY OF MARlON THE DAY OF FEBRUARY. 2003.
SIGNED BY THE MA YOR OF THE CITY OF MARION THE DAY OF FEBRUARY. 2003.
ATTEST:
ELIZABETH J. STROBEL, CITY CLERK ROBERT L. BUTLER, MAYOR
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