Program Overview & Objectives
- More sophisticated technical assistance; and
- More funding at the beginning phases of project development.
Those two needs, coupled with CDFA’s interest in advancing its mission to invest in New Hampshire’s people and communities, led to creation of the Predevelopment Loan Program.
The program offers loans for predevelopment activities, such as studying the feasibility of renovating a downtown building, gathering public input on a project idea, developing a business plan for a new facility, creating architectural drawings, or seeking planning and zoning approval. Loans of up to $100,000 are available. Eligible projects must stand a reasonable chance of being financed and initiated within two years.
In its pilot phase, the Predevelopment Loan Program supported two projects. First, an $85,000 loan supported documentation, design and draft programming for a downtown block that included a historic theatre. These pre-development activities set the stage for the eventual purchase and renovation of the buildings. Secondly, a loan of $24,000 supported the historic assessment of a mill building that is central to the community’s downtown economic revitalization plan. The assessment led to a capital campaign to renovate the mill.
In each case, a predevelopment loan enabled the project to move forward more quickly and solidify a case for large-scale financing to complete the project and repay the loan. The results are renovated buildings that anchor downtown rejuvenation, spur additional economic development and create new jobs in the heart of each community.
The Predevelopment Loan Program seeks to achieve the following objectives:
- Provide financial and technical resources for exploration and refinement of potential community and economic development projects that would not otherwise move forward;
- Develop a more mature community and economic development technical assistance and financing network;
- Help projects move to the final stage of approval and financing; and
- Use the results to promote the program and expand its reach and effectiveness.