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Finance committee approves $200,000 revolving loan fund to spur downtown building improvements
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Summary
Using $200,000 repaid from a 2017 Keystone Communities grant, the committee approved establishing a revolving loan fund with loans capped at $200,000, façade grants capped at $10,000, business improvement loans capped at $100,000, 5‑year terms and 4.5% interest; a separate federally funded UDAG pool will remain distinct.
The West Chester Finance Committee voted to establish a revolving loan fund (RLF) using $200,000 in proceeds returned from a prior Uptown repayment under the Keystone Communities program.
Barb, the borough director, described the proposed program and said the RLF would fund acquisition, rehabilitation or new commercial construction (loans capped at $200,000), façade improvements (caps of $10,000) and business‑improvement loans (caps of $100,000). She proposed five‑year loan terms at 4.5% interest with monthly payments and said applicants must be record owners in the downtown and provide cash‑flow projections and financial statements.
Barb said the goal is to use the Main Street Matters program (administered by the Department of Community and Economic Development) funds to stimulate downtown investment and to make loans available to borrowers who cannot obtain traditional bank financing. She also noted a separate UDAG (HUD) revolving fund balance of about $47,000 that would remain federally restricted and separate from the new RLF.
Committee members sought clarity on eligibility and borrower security. One member asked whether borrowers could be non‑profit or investor groups; Barb noted the program rules have evolved since the Uptown transaction and that current Main Street Matters guidance does not restrict borrowers to non‑profits.
After discussion the committee moved to proceed; the chair recorded committee support and the vote was noted in the meeting record as 3‑0 in favor to move forward with establishing the RLF.
Next steps: staff will draft the RLF program documents and an application process, and the committee will review the proposed loan committee structure and policy details in a future meeting.
