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Downtown Business Loan Programs
Wilmington Downtown administers
business loan programs that provide capital for rehabilitation of commercial
buildings in Wilmington's Central Business District and operating capital
for qualifying downtown businesses.
Rehabilitation loans
| Operating loans
Rehabilitation Loan
Program
Terms & conditions |
Financing programs | Requirements
| Application
Terms and conditions
Wilmington Downtown Inc. is
a non-profit corporation established to facilitate the revitalization
of the Central Business district of Wilmington, North Carolina. From
1977 through January 2004, it was known as DARE, Inc.
It is the outgrowth of a Task Force appointed by
the Mayor in March, 1976. Wilmington Downtown receives both public
and private financial support for its administration and programs.
It is governed by a 36 member Board of Directors who represent the
City, County and Downtown as well as at-large members of the community.
Wilmington Downtown's goal is to insure that the
physical and economic change in Downtown Wilmington develops in a
positive way by serving as a liaison between the public, business
and government sectors, and by promoting and developing downtown as
a good place to shop, work, live and enjoy. Wilmington Downtown works
to identify problems and opportunities downtown and advocates change.
Wilmington Downtown's program, developed after analyzing
revitalization strategies of other cities and refining them to the
local situation, contains all the elements for a successful effort.
The program's success depends on the leadership, commitment and coordination
of both the public and private sectors.
Rehabilitation Financing
Programs
The areas eligible for
the loan programs are the Central Business District, which includes
North Fourth Street, and Castle Street from the Cape Fear River to 17th
Street. The objectives of the plan are:
- Offer construction and permanent financing at less than market
interest rates to make it more financially feasible for owners
or developers to renovate buildings.
- Provide technical assistance to owners of buildings in determining
repairs necessary for the building to meet NC Building Code standards
and general property improvements necessary for the building to
accommodate its intended use.
- Cooperate with Wilmington Downtown and other business interests
in designing plans and loan programs for the improvement of building
and provision of business development in designated commercial
areas.
- The objectives of the plan are to be achieved by implementation
of the following program:
Program: Building Improvement Loan Fund
Description: To encourage the development of commercial and
residential uses in the Central Business District, which includes
North Fourth Street, and in the Castle Street corridor as well, Wilmington
Downtown offers loans at fixed interest rates
of ¾ prime amortized over 20-30 years. Each loan has a five, seven,
or ten year call. The lower interest rates and longer terms will reduce
the owner's monthly debt service and will enable an owner to offer
the units for monthly rents affordable to more people. The development
of commercial and residential uses in the Downtown Redevelopment Area
will provide for utilization of upper floors of buildings and contribute
to the redevelopment of offices and retail shops on the ground floors
and should be encouraged. This program provides low-interest fixed
loans at ¾ the prime rate amortized for a term of up to twenty (20)
years with a balloon payment in five (5) to ten (10) years. The loan
proceeds are to be used for general building renovations.
This loan program is administered by Wilmington Downtown, Inc.
Maximum Loan: (2005 program) $50,000.00 or 20% of purchase
and renovation cost (whichever is lower)
Maximum Loan: (2006 program) $75,000.00
Interest Rate: ¾ prime at date of commitment
Program: Retail/Small Commmercial Loan
Maximum Loan: $10,000.00
Interest Rate: ¾ prime at date of commitment
Description: Wilmington Downtown, Inc. also offers a retail/small
commercial loan program. This program is for leasehold improvements
only. Building owners and lessees will not qualify unless they are
up-fitting the building for their own small business use. The loan
program shall provide up to 100% of up-fit costs for projects not
exceeding $10,000.
Application requirements
We require the following for a Wilmington
Downtown rehabilitation loan application:
- Loan application form.
- Cost of purchase of building or value.
- Cost of renovation.
- Copy of renovation plans.
- Cost bids for renovation work.
- Personal financial statement.
- Proof of Ownership/Control.
If the loan is approved, we will require a promissory
note, a deed of trust and/or a security agreement, along with our
standard loan agreement, as well as title insurance policy naming
Wilmington Downtown, Inc. as Mortgagee and a fire and casualty insurance
policy with Wilmington Downtown as loss payee.
Our policy under this program is to make rehabilitation
loans only.
Operating
Loan Program
Financing program
| Requirements | Application
Operating Financing Program
Loans for inventory,
furniture, fixtures (including signage) and equipment are eligible
for this program. Salaries, rent and building related expenses
(phone bills, electricity, etc.) are not included in this program.
Program: Operating Loan Fund
Maximum Loan: $5,000.00
Loans for inventories are eligible for $2,000.00
maximum.
Loans for furniture, fixtures and equipment
can be made up to $5,000.00.
No more than $50,000.00 will be loaned under the operating
loan fund.
Interest Rate: ¾ prime at date of commitment
Description: All loans are made as a reimbursement. Applicant
must provide invoices and/or other evidence of pre-purchase
in order to receive the funds.
All loans for operating expenses will require
business plan approval from the Wilmington Downtown Loan Committee
in addition to a completed application. Wilmington Downtown
recommends that the business plan be developed in partnership
with the Small Business and Technology Development Center at
the University of North Carolina-Wilmington and/or the Small
Business Center of Cape Fear Community College. Application
requirements and qualifications for the program shall be consistent
with the existing Rehabilitation Loan Program. (See
details above.) This loan program is administered by Wilmington
Downtown, Inc.
Application
requirements
We require the following for a
Wilmington Downtown operating loan application:
- Loan application form.
- Business plan.
- Receipts for purchase of inventory, furniture, fixtures
and equipment.
- Copy of lease (if applicable.)
- Personal financial statement.
- Proof of Ownership/Control.
If the loan is approved, we will require a
promissory note, a deed of trust and/or a security agreement,
along with our standard loan agreement, as well as title insurance
policy naming Wilmington Downtown, Inc. as Mortgagee and a fire
and casualty insurance policy with Wilmington Downtown as loss
payee.
Our policy under this program is to make loans
only for operating capital, such as fixtures, furnishings and
inventory, not for continuing operating expenses. The loan is
not to exceed $5,000.00 for fixtures, furniture and and equipment
or $2,000.00 for inventory. The interest rate is ¾ of prime
(at the commitment date). Terms to be determined by our loan
committee.
If you have any additional questions, please
give us a call.
Application
form
Get a printable
application form: 
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