Good Neighbors Revolving Loan Fund
The City of Aberdeen, Good Neighbors Revolving Loan program is established for the purpose of making loans to private commercial property and business owners for the purpose of making exterior, interior and safety improvements to commercial buildings and property in the downtown business district, along the state routes and the historic district.
Special consideration will be given to projects that are located within the historic district.
Upon approval by the Good Neighbor’s Revolving Loan Fund Committee, loan funds can be used for nearly any improvements that will improve the exterior of a building or lot and some interior improvements such as HVAC, historic renovations, etc. Allowed improvements include:
- Exterior painting
- Repair/replacement of original building ornamentation
- Masonry cleaning or repair
- Repair/replacement of windows and casings
- Purchase or repair of awnings
- Repair and purchase of signs
- Sidewalk repair
- Parking lot improvements and/or repairs
- Removal of Asbestos or other hazardous materials
- Code required fire safety improvements and floodplain requirements
- Other similar exterior improvements meeting committee approval
- HVAC repairs
- Interior historic renovations meeting HPC and committee approval
Qualified applicants can borrow up to $50,000 per city lot at an interest rate of 2% per annum.
The revolving loan program committee shall ensure that each loan be reasonably secured in a manner acceptable to the corporation counsel. Reasonable security may consist of a lien on the property or a subordinate lien if a loan is made in conjunction with a private lender to leverage project funding.
No more than one loan shall be extended per property at any one time.
Repayment of a loan shall not extend beyond five years from the date of any contract. The committee may recommend, to the Aberdeen City Council, longer loan terms based on the loan amount, the number of employees and the location. If approved by Council, loan terms shall not extend beyond 20 years.
The loan process is relatively quick and simple. First, make sure that your business or property lies within one of the districts outlined on the map. Second, make sure that your credit is in relatively good standing; a credit report will be used in making the loan determination. Third, the Good Neighbors Revolving Loan Fund Committee will hold a meeting to evaluate your application and will make a determination, usually that same day. Fourth, once approved, the Community Development Department will prepare the loan documents for signature.