Downtown Excelsior Partnership, Inc. Low Interest Loan Program
How to get a Low Interest Loan
Submission of Request
- DEP loan applications are available by emailing exec@visitesprings.com or by using the application portal on www.VisitExcelsior.com here.
- You will be required to include all information requested as part of the application in order to be considered for the loan.
- Submit completed applications to DEP through the online application portal.
- Loans are reviewed and issued monthly based on availability of funds. Deadlines for submission are the 20th of the month.
Review and Approval Process
- Applicants receive preliminary review by the DEP Organization Team to verify eligibility. Eligibility is based on:
- Compliance with DEP policies
- Submission of all required information
- Any other pertinent facts established through research
- Eligible applications will be forwarded to the participating banks for consideration.
- The credit history of the applicant and the personal guarantor will be checked by lending institution.
- Final approval of the application is made by the DEP Board of Directors.
- Applicants will be notified in writing of approval or denial of their request.
Issuance of Loan Funds
- DEP will process all paperwork for the loan.
- Approved borrowers may begin proposed improvements immediately and shall complete improvements within 6 to 24 months depending on the scope of the work.
Repayment of Loan
- The borrow shall begin repayment of the loan funds in accordance with the terms of the loan and the terms of the DEP Policies. Loan amounts, terms and interest rates may vary from borrower to borrower.
Loan Request Checklist
The purpose of the Downtown Excelsior Partnership, Inc. (DEP) is the improve the economic welfare of the Hall of Waters Historic District by returning all downtown commercial buildings to positive ownerships and standard conditions and to promote the general economic welfare of the business community in the Hall of Waters Historic District in Downtown Excelsior Springs, Missouri by making available to qualified applicants below market interest rate loans for improvements to enhance the public interior and exterior appearance of buildings. This being established, DEP believes a Request for Low Interest Loan must meet the following conditions.
General Conditions
- The property of the request is located in the Hall of Waters Historic District.
- The Request for Loan contained all of the required information.
- All businesses on the property of the request have a current City of Excelsior Springs Occupational License as required by ordinance.
- The request was deemed a satisfactory risk based on the credit history provided by DEP’s lending institution.
- The applicant(s) qualifies to allow DEP to be approved for funding from other government or private agencies.
- The building was considered blighted.
Location of Applicant’s Represented Business
- The applicant plans to locate a new business at the property of the request.
- The applicant’s business property is located in the Hall of Waters Historic District.
Proposed Improvements
- The applicant’s request is consistent with the recommendations of DEP and Historic Preservation Commissioner.
- The applicant’s request proposes improvements deemed most in need for the commercial corridors of the Hall of Waters Historic District.
Impact on Surrounding Properties
- The applicant’s request will likely have a favorable impact on surrounding properties and the district as a whole.
Long Term Impact of Improvements
- The applicant’s request has potential for a longer-term impact on the property and the district as a whole.
- The applicant’s request proposes improvements to a business/structure with a long-life expectancy.
DEP Funding
- DEP has adequate funding available to process the applicant’s request.
Loan Process Policy
Description of Loans
- The minimum amount of loan funds provided to each borrow shall be not less than $5,000.
- The maximum amount of loan funds provided to each borrower shall not exceed $50,000 or 20% of the project, whichever is less.
- Each property owner shall be eligible to receive loan funds two times during a ten-year period.
- DEP shall only approve such loans in number and amount as to not reduce the balance of the available loan funds below $1,000.
- The minimum monthly payment of the loan shall not be less than $200.
- Each DEP loan, regardless of amount or interest rate shall have a term of not more than 36 months or until such time the loan is paid in full, whichever comes first.
- The rate of interest shall be a fixed rate set by DEP and below the New York Prime Rate as published in the Wall Street Journal on the day the note is signed.
Usage of Loan Funds
- DEP loan funds must be used to eliminate blight of the property approved and must result in improved appearance for the buildings and/or surrounding property. Typical examples of such improvements are property acquisition, improvements to eliminate code deficiencies, abate environmental conditions, repair or replacement of major systems anticipated to fail, such as HVAC, roof, or foundations, upgrade physical condition, design or consultation services.
- The business property for which the applicant is requesting a DEP Loan must be located within the Hall of Waters Historic District.
Request for Loan Process
- DEP will accept requests for loans throughout the year. Requests shall be approved or denied no later than the second Wednesday of the following month that the loan application was received. DEP loan months shall end the last day of the month. The deadline for submitting a loan request form for review shall be on the 20th day of the month that is proceeding.
- The applicant must submit the official Loan Request through the Application Portal on the www.VisitExcelsior.com website located here.
- The applicant must provide any other information required by DEP or the lending institution during the consideration process.
- All businesses on the property under consideration for a DEP loan must have a current City of Excelsior Occupational License unless exempt by ordinance.
- The applicant and/or personal guarantor must be willing to permit a full credit history check of their background and the background of the business the request represents.
Review and Approval Process
- The request of eligible applicants shall be placed on the agenda of a regular or special meeting of the DEP Board of Directors at which there is a quorum. Eligibility is determined based on compliance with DEP policy and any pertinent facts established through staff research.
- DEP’s lending institution shall conduct a credit history analysis for each eligible request and forward the information to DEP.
- The Board Members present at the DEP Board Meeting shall discuss the request.
- DEP Board of Directors shall determine which requests have credit history deemed a satisfactory risk and which have been deemed an unsatisfactory risk. Requests deemed as unsatisfactory risk shall be denied immediately. Determination of credit risk is at the sole discretion of the Board.
- The request that have credit history deemed a satisfactory risk shall be ranked numerically by the Board of Directors based on the Borrower’s Selection Process.
- Based on the amount of DEP funds available for allocation and the funding amounts of the requests for loan, the Board of Directors shall determine how many requests beginning with the top-ranking request and working down shall be approved.
- The approval requests shall be conducted in accordance with the procedures established in the DEP bylaws.
- Applicants will be notified in writing of approval or denial of their request.
Conditions of Loans
- The borrower must obtain and comply with all necessary permits and approvals for the improvements as required by the City of Excelsior Springs, including but not limited to, building permits, trade permits, contractor occupational licensing; City Council approval; Planning and Zoning approval; and regular building inspections.
- The improvements must be completed within the time allowed by the City of Excelsior Springs as specified through the City’s approval process, or up to 24 months’ time, whichever occurs first.
- The applicant may make a written request for additional time to complete improvement projects which may require an extended amount of time for completion.
- Approval for such extensions shall be granted at the sole discretion of the DEP Board of Directors.
- DEP Loan Funds shall be issued to the borrow only after:
- Construction/Installation has been completed in accordance with the approved application and in accordance with this policy;
- An inspection of said improvement has been conducted by DEP or its agents; and
- The borrower has submitted a complete Application for Loan;
- The borrower has submitted a Request for Issuance of Loans;
- The borrow has executed a Promissory Note;
- The personal guarantor, if any, has executed a guaranty agreement;
- The applicant and personal guarantor, if any, have provided DEP with all required and requested documentation.
- DEP accepts no liability for damage or loss caused as a result of installation of improvements or as a result of the existence thereafter of any improvements made using DEP loan funds.
Conflict of Interest
Any member of the DEP Board of Directors shall abstain from voting on applications when a Request for Loan:
- Relates directly to or affects directly said member;
- Relates directly to any business, company, or corporation that is owned in part or full, operated by, or is otherwise linked directly or indirectly to said member;
- Relates directly to or affects directly any property, real or otherwise, that is owned, in part or full, or operated by said member; or
- Represents any personal conflict of interest for said member at the member’s discretion or at the discretion of the Board President.
Borrow Selection Process Policy
General Terms
- The applicant must meet all of the requirements of the loan process established through DEP Policy including but not limited to, satisfactory designation of credit history.
- Preference shall be given to applicants who qualify to allow DEP to be approved for funding from other government or private agencies, including, but not limited to, State, Federal and Neighborhood Improvement Grants.
Location of Applicant’s Represented Business
- DEP shall review the conditions of the Hall of Waters Historic District, City of Excelsior Springs, working together with Code Enforcement staff to identify areas which are blighted. Preference shall be given to applicants whose business(es)/property(ies) are located in those areas.
- Preference shall be given to applicants who have applied for a DEP loan at a location where they plan to locate a compatible business.
Proposed Improvements
- DEP shall review the recommendations of the City of identify improvements that are considered most in need for commercial corridors of the District. Preference shall be given to applicants who propose improvements of this nature.
Impact on Surrounding Properties
- DEP shall work to identify the impact of proposed improvements on the surrounding properties of proposed loan locations and the district as a whole. Examples of favorable impact on surrounding properties include but are not limited to:
- A chain reaction effect hereby business/property owners of adjacent properties seek to make improvements to their owner locations following DEP Loan Improvements;
- Improvements that affect the overall surrounding area by improving traffic flow and/or access to adjacent business or roadways, and;
- Aesthetic changes that improve the overall surrounding area through significant architectural updates.
- Preference shall be given to applicants who propose improvements deemed to have the most positive impact on the surrounding properties and the district as a whole.
Long Term Impact of Improvements
- DEP shall work with identify improvements that will have the longest-term impact on the property and the district as a whole. Examples of such improvements include, but are not limited to:
- Major permanent construction at the business location which does not pertain directly to the business itself and which shall endure construction of the business at that location;
- An increase in number of persons employed at the business location and surrounding properties;
- Preference shall be given to applicants who propose improvements to properties which the life expectancy and the visibility of the main structure/building on the property are greater than twenty (20) years.