Town Center Loan Program

The process of securing capital necessary to start a new business or expand an existing facility in today’s economic climate has become increasingly difficult. In response to that need the City of Grove City has established a Town Center Loan Program (TCLP). The program is designed to stimulate job creation and revitalize under-utilized properties within a targeted area. If you would like more information concerning Economic Development, please email the Development Department or call 614-277-3004.

Direct loan to for-profit, non-profit, or not-for-profit businesses.

Businesses may be startups or existing businesses located in the defined loan district which can be viewed on our area eligibility map.

Businesses with prior bankruptcy or officers with significant past criminal records may not be eligible. TCLP will follow modified SBA guidelines that specify that the offenses must be remote in time and/or minor in nature. Also, Community Capital Development Corporation (CCDC), the loan processing entity, will follow SBA guidelines that exclude businesses that promote gambling or appeal to prurient interests.

Primarily working capital, real estate, equipment, business acquisition and other purposes approved by City Council. Funds may be used in tandem with other financial programs such as SBA 504 real estate loans as equity.

Generally the TCLP will not refinance debt (flexibility based upon tangible benefits to the borrower and the community). Funds may be used for investment property but must show permanent job creation or retention and must add to the vitality of the district.

Loans range from $5,000 minimum to $150,000 maximum.

Amortization schedules up to 15 years, with a maturity of five to a maximum of 15 years.

Generally, the TCLP would be in a subordinated position to other sources of funds.

There is no prepayment penalty.

The rate will be 3%. However, the rate is determined by several factors: the project’s risk, the business need, and market conditions. Interest may be waived in special circumstances.

Adequate collateral is required and must be of such a nature that recovery of the loan can be reasonably expected.

An origination fee of 1% of the total loan will be charged and collected at closing.

Out of pocket costs for borrower and business credit reports will be charged to the applicant.

Closing costs include out of pocket costs for filings such as Uniform Commercial Code forms, mortgages, etc.

Application Process

  • Applicants may contact the City of Grove City, CCDC, or one of the TCLP partner banks to discuss the project
  • Applicants submit Application Checklist items to CCDC
  • CCDC underwrites the loan request and reviews the recommendation with the Loan Review Committee (LRC)
  • CCDC prepares a modified credit memo with LRC recommendations for City Council
  • If approved by City Council, the commitment letter is issued by CCDC on behalf of the City of Grove City. If the application is denied by City Council there will be no appeal process
  • CCDC prepares the closing documents for review by the City and submits a request for loan funds
  • Once the loan documents are approved and funds are transferred to CCDC, a closing date is set, the loan is closed by CCDC, and funds are disbursed to the Borrower. Funds may be disbursed in increments based on a number of factors such as performance, construction schedules, etc.
  • CCDC sets up a payment process through the Automated Clearing House (ACH)
  • CCDC sets up a servicing file and begins servicing the loan

Application Checklist

The following items will be requested from applicants:

  • Grove City Town Center Loan Application
  • History and description of the business
  • Specific use of loan proceeds and source of funds
  • Written cost estimates
  • Three years of financial statements from the business (balance sheet and income statement)
  • Current financial statements (less than 90 days old)
  • Three years of business tax returns
  • Three years of personal tax returns
  • Two years of projected income statements
  • Personal financial statements and tax returns of owners with 20% or greater ownership
  • Bank commitment letter (if applicable)
  • Qualified appraisal (if applicable)
  • Environmental Questionnaire and Formal Assessment, if required
  • Resumes of key management
  • Lease or purchase agreements
  • A formal business plan is not required, but is preferred. In the absence of a formal business plan, a series of questions are developed to provide sufficient background on the business, its owners, financial stability, and prospects
  • Information or other personal assets of principal officers may be requested