Downtown Lima Development Loan Program
The Downtown Lima Development Loan (DLDL) program is a revolving loan program designed specifically for businesses in downtown Lima. The DLDL offers growing businesses long-term, fixed-rate financing. And like our other revolving loan programs, money repaid to the fund stays in the community to be relent to other local businesses. To learn more about the Downtown Lima Development Loan program, click on the questions below:
Who is eligible for a DLDL?
Eligible businesses must be a for-profit, start-up, or expansion located within the downtown Lima defined region shown below. Contact us for specific DLDL boundaries. (back to top)
What can DLDL funds be used for?
Funds from the DLDL can be used to finance fixed-asset projects such as the purchase of equipment, building and land acquisition, new construction, and the renovation of an existing facility. Funds may also be used for inventory and operating expenses. (back to top)
Are there any other requirements?
Yes. Eligible businesses must create or retain one full-time job for every $10,000 borrowed. Personal guarantees will be required from all individuals with 20% or greater ownership. Eligible businesses must also become a member of Downtown Lima, Inc. at the $250 level and remain so for at least 5 years. (back to top)
How much can my business borrow?
The DLDL takes a subordinate lien position and will contribute up to $50,000 of the project costs or up to 90% loan-to-value. The minimum loan amount is $1,000. Typically, the applicant business must provide at least 10% equity, with up to 50% coming from a private lender. (back to top)
What are the rates and terms of the loan?
The interest rates on a DLDL are determined on a project-by-project basis and are fixed for the term of the loan. Terms are generally 5 years. (back to top)
Are there any fees?
Yes. The DLDL requires an application fee of $250. Attorney and closing fees are also the responsibility of the borrower. (back to top)
Is it difficult to apply?
No. All you need to do is provide us with the same information given to financial institutions for traditional financing and our experienced staff will prepare the application on your behalf. (back to top)
How long is the approval process?
Upon completion of your application, it usually takes no more than two weeks for the loan committee to review your request. Once approved, we forward your application to the United States Department of Agriculture – Rural Development for their approval. The DLDL also requires an environmental review, which can take between 60 and 90 days for real estate and 5 days for equipment. (back to top)
What happens after approval?
After approval, the bank funds the project in the interim until it is completed. (back to top)
When can my DLDL close?
The following conditions must be met prior to closing:
ü Construction/renovation is completed
ü All equipment is in place and operational
ü All bank loan proceeds have been spent
ü You have made your equity contribution
Contact us if you are ready to close your loan. (back to top)
When will I receive the funds from my DLDL?
Funding occurs immediately upon an adequate closing. (back to top)
How do I apply?
It’s simple. Just call us at 419-222-0130 or contact us by email and we’ll be happy to get your application started. (back to top)