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Council approves PDC storefront revolving loans: 0% loans up to $20,000 for downtown businesses
Summary
The Portland Development Corporation’s storefront improvement revolving loan program was approved June 2. The program will use $250,000 of Downtown TOD TIF funds to make 0-percent loans up to $20,000 available to eligible commercial property owners and tenants in the defined TOD TIF district.
The Portland City Council on June 2 approved the Portland Development Corporation’s storefront improvement revolving loan program, which will use $250,000 of Downtown TOD TIF funds to provide 0-percent loans of up to $20,000 for facade and storefront improvements in the TOD TIF district.
Greg Watson, director of Housing and Economic Development, told council the program was adopted by the PDC at its May 15 meeting and that the loan fund is designed to complement other commercial loan programs. “There are some additional terms that apply to this … the 0 interest loan that was the biggest sort of benefit carved out for this,” Watson said. He added that the same recourse provisions used in other PDC lending will apply to delinquencies.
Councilors asked how the program would work with an upcoming vacancy ordinance and whether leaseholders could apply. Watson said the loan is available to property owners and leaseholders, and that work to improve a vacant space — such as facade or safety improvements to make a building more marketable — would be treated as an eligible use and would not trigger vacancy fees if the owner is actively working to activate the space. “If you are actively working to make the space better and more marketable and ready to be activated, that is why we are offering this corollary to the commercial vacancy ordinance,” Watson said.
On administration, applicants will use the city’s standard application process; Watson said the department will post a simple online application form and provide links from the department’s PDC programs page. The program will operate on a first-come, first-served basis until the $250,000 is exhausted, Watson said, and the PDC expects substantial interest given the low-cost capital.
Councilor Grant said she supported the measure and praised the committee’s “thoughtful, deliberate approach” to downtown improvement efforts. Councilor Sykes asked about clawback provisions if tenancy changes mid-project; Watson responded that existing PDC recourse provisions apply and that recourse and repayment approaches are discussed at PDC meetings when delinquencies arise.
The council adopted Order 2 24 24 25 by unanimous vote. Staff will publish application materials and return with program uptake data as funds are deployed.
