$20K business façade loan approved for Real Estate Center of Spearfish
SPEARFISH — Another business in Spearfish has applied for and received a Spearfish Economic Revolving Fund (SERF) Business Façade Rehabilitation loan.
The Spearfish City Council Monday approved a $20,000 loan for Real Estate Center of Spearfish to complete exterior improvements and updated signage at its 140 W. Jackson Blvd. facility.
“It is SEDC’s (Spearfish Economic Development Corporation’s) recommendation that the loan application be approved in that the project satisfies the primary goals of the SERF Business Façade Rehabilitation program,” Kory Menken, SEDC executive director, said.
The $20,000 loan would be extended at a fixed interest rate of 2 percent per year, requiring monthly payments based on a five-year amortization schedule. The borrower would pay the actual costs of all settlement charges and fee incurred by the city, the term sheet states, and per the loan program policy, the loan would be secured by a real estate mortgage on the property.
The SERF program, a municipal financial resource created in 1992, provides short-term, low-interest loans to manufacturers/service exporters expanding or relocating to Spearfish. There are no minimum or maximum loan amounts.
The Business Façade Loan Program, established in 2001 using SERF funds, provides low-interest municipal loans that allow business owners/tenants of commercial building to enhance or preserve the exterior appearance of facades or interior structures. Common Grounds, Good Earth Natural Foods, Versatile Carpets and Interiors, Northern Hills Cinema, and more have used the loan program in the past.
The Business Façade Loan maximum is $20,000 and may be used for, façade painting; exterior wall cleaning and restoration; repair, addition, and replacement of awnings, windows/window treatments, door, and signage; façade and display window lighting; architectural and engineering design services; removal of old signs, awnings, and other exterior clutter; installation of permanent landscaping; handicapped accessibility; fire suppression systems; public access improvements; building permits and fees; and any other conditions to meet the current standards of the Spearfish Building Codes.
The exterior improvements are already visible at the Real Estate Center of Spearfish, and Menken explained Tuesday that unlike the other SERF loans, Business Façade Rehabilitation funds are not disbursed until after the project has been completed and the contractors paid.
“In other words, it is more of a reimbursement process,” he said. “Thus, we are comfortable with projects beginning so that they are not delayed by the approval process. In most cases, the project is also being funding by a traditional lender (bank, credit union, etc.).”
He added that applicants should visit with SEDC staff prior to commencing work and recognize that final loan approval is not guaranteed.
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