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Owosso DDA approves revised revolving loan and grant program with shorter grant clawback
Summary
The Owosso Main Street & Downtown Development Authority approved revisions to its FY2026–27 Revolving Loan & Grant Program, including expanded eligible projects, a grant clawback provision and an option for loans with future principal reduction; the board unanimously adopted the revised clawback schedule as presented.
The Owosso Main Street & Downtown Development Authority on June 3 approved revisions to its Fiscal Year 2026–2027 Revolving Loan & Grant Program Guide that expand eligible projects, add a grant clawback provision and allow an option for a loan with future principal reduction in lieu of a reimbursement grant.
Staff member Lizzie Fredrick presented the proposed guide changes to the board, which included the clawback mechanism intended to protect public funds if grantee projects fail to meet program requirements. Commissioner Jon Moore proposed shortening the clawback period from five years to three and adjusting reimbursement levels to 100% in year one, 50% in year two and 25% in year three; Commissioners Karen Parzych and Josh Ardelean said they supported that revision.
After discussion the board voted to approve the revised Revolving Loan & Grant Program, including the revised grant clawback provision, and to recommend that the City Council approve the program for FY2026–27. The motion to approve was moved by Commissioner Colin McCallum and supported by Vice-Chair Lance Omer; the motion carried with all present voting aye.
The approved changes broaden what projects may qualify for loans and grants and add administrative safeguards (the clawback). The board directed that the item be forwarded to the Owosso City Council for consideration; no further details on implementation timelines or funding limits were specified in the meeting.
