City Incentives
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Economic Development Authority
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Economic Development Loan Program
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Commerical Exterior Beautification Program
Tax Increment Financing
Tax Increment Financing (TIF) is a method of financing real estate development costs to assist with the construction of buildings or other private improvements, as well as other types of development.
TIF uses the additional property taxes paid as a result of development and increased property value to pay for portion of the development costs.
Tax Abatement Overview
Tax abatement is the process by which a portion of property taxes are rebated back to the property owner, who then uses it to help offset development or redevelopment costs. Tax abatement is simpler and less restrictive than tax increment financing and is quite useful for smaller projects.
Economic Development Loan Program
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Eligibility
• Businesses must be located within the city limits of Stewartville.
• Eligible uses include business start-up and expansion, building purchase or renovation, machinery and equipment, site improvements, and professional services.
• Projects should support job creation and/or growth of the local tax base.
• Eligible businesses must be a “for profit” business.
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Requirements
• All projects must comply with city codes and policies.
• Business must demonstrate a sound and reasonable risk.
• Credit analysis must show other financing sources are being utilized.
• A financing gap must exist within the overall project.
• Minimum equity investment of 10% is required.
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Rates/Terms
• Loan terms are determined based on loan amount and approved by City Council.
• Interest rates are set below the New York Prime Lending Rate.
• Loan amounts range from $5,000 to $50,000
• Terms generally range from 3 to 10 years depending on loan size.
• The City may subordinate to other financing sources when appropriate.
