The City of Franklin, through the repayments from previous low interest loans, has established a revolving loan fund which is to be used for the restoration, renovation, rehabilitation and preservation of commercial buildings within the corporate limits of the City of Franklin. Funds will be limited to physical improvements to the facility.
The maximum amount of any loan under this program shall be $25,000. The minimum amount shall be $5,000.
- The real property to be improved must be located within the corporate limits of the City of Franklin.
- The improvements to be made with the loan proceeds are limited to the cost for the restoration, renovation, rehabilitation and preservation of commercial buildings and structures.
- Only new loan applications will be accepted. No refinancing of an earlier Low Interest Loan for building improvements will be allowed under this program.
- The applicant shall have no current delinquent payments or have had any delinquent payments from a previous low interest loan for one year prior to application.
- The applicant shall be in good standing with the City of Franklin.
Terms and Conditions
- Loans will be made available at a fixed interest rate of 1% above prime per annum.
- The repayment term may vary up to a maximum of 7 years.
- Repayment shall be in equal monthly installments commencing on the first of the month after the project has been completed.
- Up to 10% of the loan may be applied to soft costs for the hiring of an approved architect, architectural designer, interior designer, or contractor to prepare façade improvement plans and specifications.
- Loan applications shall be approved with regard to financial feasibility, collateral requirements and design guidelines as established by a committee appointed by Franklin City Council consisting of a representative of the City of Franklin Department of Community Development, Franklin Southampton Economic Development, Inc., the Franklin Southampton Area Chamber of Commerce, and the Downtown Franklin Association, Inc.
- Applicant is advised to solicit help and advice from the Franklin Department of Community Development on all work to be done with approved loan program funds.
- Applicant shall submit the following items to the Community Development Office (click the following to view/download):
- The design packet shall be reviewed by the Department of Community Development for design quality and for adherence to applicable policies, requirements, codes, and appropriateness as determined by the Secretary of Interior’s Standards of Rehabilitation or the City of Franklin Department of Community Development.
- The financial information shall be reviewed by the appointed committee for financial feasibility and collateral requirements.
- The Department of Community Development will contact the applicant as to the Committee’s decision and requirements.
*Please Note: In no event shall the City of Franklin use race, sex, age, or religion as grounds for refusing a loan to an eligible applicant.