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Program Eligibility and Requirements

A property must be located within the legal boundaries of the Downtown Development District to be eligible (see map). An owner with multiple buildings may apply once for each building. The following criteria will also apply:

• Only buildings with retail, commercial, or professional uses consistent with desired downtown land uses are eligible.
• Properties must be structurally sound, roof intact, and meet basic public safety codes. Proposed improvements must also comply with all applicable building and zoning codes and should reflect consideration for preserving the historic character of Downtown Cadillac. Awnings and signs are eligible expenses under program guidelines and are encouraged as part of a comprehensive façade restoration project.
• Any façades abutting public rights of way are eligible projects. This includes rear façades, as well as highly visible façades. Side façades that do not abut public rights of way, and interior improvements will be considered on a case-by-case basis.
• Eligible interior improvements must be permanent physical upgrades to the building’s structure or systems and cannot include furniture, moveable equipment, or business inventory.
• This program is open to both building owners and tenants. Tenants must provide written owner consent for any alterations. Please be advised that requirements for loan signatories are determined by the participating financial institution. While smaller projects may only require the tenant’s signature, lenders may require the property owner to co-sign the loan at their discretion.
• Applicants will be required to complete an application form provided by the Cadillac DDA.
• All required municipal / governmental permits must be obtained prior to the start of any construction.
• Program funds may be used to cover the verified costs of professional labor provided by a licensed contractor, as well as necessary materials, supplies, and equipment rentals directly related to the approved scope of work.

Applying
DDA and City Staff are available to help. Before applying you are encouraged to contact the DDA Director at [email protected] or 231-281-7458.
View the Building Improvement Loan Application.

• Applicants who wish to apply for the low-interest loan will complete an application, which in turn will be reviewed by the DDA Administrative Committee and approved by the DDA Board.
• Once approved by the Committee, the application will then be forwarded to the participating lender of the applicant’s choice for loan approval. Potential Downtown lenders include: Horizon Bank, Mercantile Bank, Fifth Third, Wexford Community Credit Union, Huntington Bank.
• Eligibility, terms, and conditions of private financing will be determined on an individual basis subject to the normal credit-granting criteria of participating lenders.
• To ensure construction can proceed promptly upon approval, all applicants must submit a Complete Scope of Work at the time of application. A project is considered ready for review when the following requirements have been satisfied:
  • Detailed Project Description: A written narrative outlining all proposed improvements and alterations including the types of materials to be used and proposed color palette. Project description should also provide an estimated start date for construction.
  • Visual Documentation: Current “before” photographs of the property and any applicable design drawings, sketches, or architectural renderings of the proposed changes.
  • Professional Estimates: A detailed quote from a licensed contractor (as applicable). For projects that do not require the use of a licensed contractor, applicants must provide an itemized list of materials and cost.
• No funds will be released until all necessary permits and approvals for the proposed work have been issued and verified by the City. This includes but is not limited to City of Cadillac building, electrical, mechanical, and plumbing permits, as applicable.
• All approved improvements should be completed within 180 days of the loan agreement’s execution. Failure to complete the project within the designated timeframe may result in the loan agreement being terminated.
• Requests for time extensions must be submitted in writing and will only be approved upon the express written consent of the Cadillac DDA in conjunction with the participating financial institution.

Project Review and Selection Process
Administrative Committee members and City staff will work closely with property owners and tenants to determine initial eligibility under program guidelines. Once the initial scope of work has been determined, the applicant will present the project to the Administrative Committee. The Committee will provide input and make suggestions to the scope of work until a complete package is prepared and sent to the DDA Board for approval. Upon approval by a majority of the DDA Board, the application will be sent to the participating bank of the applicant’s choice for financing.

Ineligible Uses of Program Funds
Program loan funds may not be utilized for any of the following uses:

• Refinancing existing debt
• Property acquisition
• Interior improvements and/or furnishings
• Site plan, building, or sign permit fees
• Property appraisal costs, legal fees, or loan origination fees
• Labor costs paid to the owner / applicant or relatives of the owner / applicant.

Rights Reserved
The Cadillac DDA reserves the right to reject any and all applications. The specific program guidelines detailed herein are subject to revisions or amendment by the Administrative Committee with approval by the DDA Board. The Cadillac DDA may discontinue this program at any time, subject to program demand, the availability of program funding and the participating bank’s continued participation.

Other Loan Guidelines

• The maximum loan amount is $60,000 per project. At least one-third of the loan shall come from funds provided by a participating bank at 1.0% below prime APR fixed. A maximum of $20,000 of the loan shall come from funds provided by the Cadillac DDA at 0% interest. Thus, the interest rate paid on each loan shall be based on a blend of 1.0% below prime APR fixed and 0% interest funds.
• Installment payments of principal and accrued interest will be paid monthly, with a maximum term of five years, subject to agreement between the applicant and participating bank and the DDA. Additionally, loans shall amortize over five or 10 years, subject to agreement between the applicant and participating bank. After maturity, the loan may be subject to an additional financing period until full payment at the then current 1.0% below prime rate fixed if the applicant’s previous record is satisfactory.
• All out-of-pocket closing costs and recording fees will be the responsibility of the borrower.
• Collateral will be required to secure the loan if deemed necessary by the participating bank.
• If utilizing a licensed contractor, two quotes are recommended. The applicant will not necessarily be required to accept the low bidder.
• For projects that do not require the use of a licensed contractor, applicants must provide an itemized list of materials and cost.
• Building owners or tenants are eligible. If a tenant applies for assistance, he/she must provide written proof that the building owner has authorized proposed improvements. Evidence of an executed lease for a term equal to the loan period will also be required.