Downtown Revitalization
Loan Program
Commercial Guidelines
Member FDIC
Member SIF
“During the past several months, I have met with business leaders and residents as part
of the Downtown Advisory Committee. It became clear to me that even with the efforts
of everyone involved, the community needed to provide financial incentives to building
owners and businesses to invest in the Downtown. . . . as one of the major providers of
financial services in Greenfield, we wanted to help this process along. We believe
providing this low cost loan program is just one way we can help our community grow
and prosper. This goes hand in hand with the involvement of many of our employees
in the community. This is what being a locally-managed community bank is about.”
(May 2003)
Michael Tucker
President and Chief Executive Officer
Greenfield Co-operative Bank
Revitalization Program
Commercial Guidelines
About the Program
As a major provider of financial services in Franklin and Hampshire Counties,
which is home to our bank, we feel a responsibility to respond to the special needs
of our small town communities, and created a program that will benefit, and more
importantly, improve our downtowns. Greenfield Co-operative Bank has set up
this program to provide financial assistance to real estate and business owners in
downtowns of Greenfield, Northampton, Turners Falls, Amherst and Easthampton
at exceptionally favorable interest rates, to be used towards the revitalization of
our community. These guidelines are for commercial improvements.
Designated Target Area
Funds Available
The target area designated for commercial
Projects consists of the downtowns of
Greenfield, Northampton, Turners Falls, Amherst and
Easthampton.
Greenfield Co-operative Bank has
made a commitment of $1 million
toward loans in these local central
business / downtown areas
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Project: Downtown Revitalization Loans
Commercial Guidelines
Qualifying Projects
The projects that qualify for revitalization dollars under the commercial guidelines are as follows
(See details listed below):
•
Façade & Signage Improvements
•
Commercial Improvement
•
Lead paint & Asbestos Abatement
•
Access Improvements
Eligibility of Borrowers
•
All loans must be borrowers in a profit-making businesses and must meet the Bank’s
general underwriting criteria for commercial credits.
•
The commercial property and business must be in the downtown areas in the cities/towns
of Greenfield, Northampton, Turners Falls, Amherst and Easthampton.
•
Applicant(s) must be current with their community on all property taxes and water &
sewer bills
•
Plans for commercial improvements must be acceptable to the Bank and in line with the
focus of funding
•
Contractors to conduct the work must be acceptable to the Bank
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Project: Downtown Revitalization Loans
Commercial Guidelines
Loan Terms & Interest Rates
Maximum Term of Loan:
Time Period
15 years (10 years unsecured).
Simple Annual Interest Rate
Up to 2 Years
All term loans under this program will be interest free
for the first two years. Thereafter the rate will be
adjusted as outlined below.
From 2-5 Years
National Prime Plus zero– (currently 3.25%)
From 5-7 Years
National Prime Plus 1.50%- (currently 4.50%)
From 7-10 Years
National Prime Plus 2.50%- (currently 5.50%)
From 10-15 Years
National Prime Plus 3.50% -(currently 6.50%)
NOTE: Current simple annual interest rates shown are those in effect as of March 3, 2015. Interest rates and
this program are subject to change without notice. Interest rate adjustments on loans under this program will be
determined as of the anniversary date of the note and fixed for the time period shown. The “National Prime Rate”
is defined as the highest Prime Rate published in the Wall Street Journal on the business day prior to the date of
adjustment, plus the margin shown above.
Lending Amounts- types of qualifying projects
Façade & Signage Improvements
The Bank will loan $2 for every $1 of private funds invested by the borrower. All façade and
signage improvements must be in accordance with the Town and Commonwealth regulatory
requirements (i.e. zoning and building codes) and where necessary, have received approval
from their city or town prior to application.
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Project: Downtown Revitalization Loans
Commercial Guidelines
Commercial Improvements
_________________________________________________________________
The Bank will loan $1 for every $1 of private funds invested by the borrower. Examples of
commercial improvements include: Building rehabilitation and the expansion and improvement
of off street parking. Both property owners and tenants may apply for property improvements.
Lead Paint & Asbestos Abatement
The Bank will loan $1 for every $1 of private funds invested by the borrower. Funds may be
used for lead paint removal, asbestos removal or encapsulation.
Access Improvements Loans
The Bank will loan $1 for every $1 of private funds invested by the borrower. Applicants must
have their plans reviewed and all improvements must be in accordance with the Town and
Commonwealth regulatory requirements for handicap access (i.e. zoning and building codes)
and where necessary, have received approval from the city or town prior to application.
Other Loan Conditions
• The maximum loan for any one project would be $100,000.
•
The maximum loan on an unsecured basis would be $10,000 for a maximum term of
10 years.
•
Any amount in excess of $10,000 and/or 10 years would require a security interest in
the property.
•
In all cases, the Bank will disburse funds according to an agreed upon schedule.
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Project: Downtown Revitalization Loans
For Further Assistance…
To take part in our Downtown Revitalization Program, simply visit our Commercial Loan
department at 62 Federal Street, Greenfield or our King Street office in Northampton, and ask
for an application. If you have any questions, stop in and ask for Bill Ahlemeyer, Tony Worden,
Dave Ahearn or Barbara Campbell, or you may call them at (413) 772-0293. We will be happy
to explain our Commercial Downtown Revitalization Program in detail.
Originally Issued: May 2003 (updated March, 2015)
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Project: Downtown Revitalization Loans