1. Loan Pool Outline
Target Audience:
Mid-range private owners/developers requiring slight extra assistance in starting a
project. Applicant must have a viable business plane and qualify for financing.
Eligibility Requirements:
All owners and their tenants within the New Albany Urban Enterprise Zone boundaries
are eligible. Tenants must provide a letter from property owners authorizing any and all
proposed improvements.
Eligible projects must demonstrate meeting at least one of the Program Objectives below:
* Major Façade Improvement, Repair or Renovation
* Repair/Upgrade/New Mechanical Systems
* Exterior Structural Improvements/Additions/Repairs
* Building Expansions and/or New Construction
* Property Acquisition
* Equipment Purchases
* Landscaping Improvements
* In Commercially Zoned Areas Only, For Business Purposes Only
* Loan requests incorporating upper floor housing components will be favored
Program Guidelines:
The Special Rate Gap Financing Program will finance 30% of total loan
* Maximum loan - $100,000
* Minimum loan - $5,000
* Repayment Terms - negotiated (no prepayment penalty)
* Interest Rate - Initially, the lending rate will be set at the Prime Interest
Rate at time of closing.
Loan Rate will float at Prime; to be adjusted as Prime Rate
changes.
* Applicant Participation - Applicant must have 10% personal equity in the project.
Participating financial institution will finance 60%
NAUEA loan program will provide funding for the
remaining 30% gap financing.
Additionally, applicants agree to apply for enterprise zone
incentives - where applicable - for the proper period of time
if their application is accepted.
The following requests will not be considered as proper uses of the Special Rate Loan
Program:
1.) Grants
2.) Single Family Dwellings
3.) Persons without the ability to pass a credit check will not be eligible.

2. PROGRAM OPERATIONAL OUTLINE
1.) Each participating financial institution will sign a:
* Letter of Participation upon agreeing to participate in the Program. This letter will be
signed at the time the participation fee is paid.
* Each financial institution will pay a one-time participation fee of $300 to the New Albany
Urban Enterprise Zone Association to participate in the program.
* The option to renew or leave the Program will occur on the anniversary date of the
financial institution’s payment of the participation fee. The date of payment of the
application fee will be considered the day the financial institution actually joined .
2.) Each financial institution will underwrite, monitor and administer the loans made by its
institution.
* The pricing/structure for the bank financing will be determined by each financial
institution.
* The financial institution will be in first collateral position.
* Each financial institution will monitor and administer the loan for the 30% Special Rate
Gap Financing.
3.) Applicants will approach NAUEA, who will certify via letter that applicant property is within New
Albany Urban Enterprise Zone boundaries. NAUEA will:
* Provide applicant with cover letter stating property is in the New Albany Urban Enterprise
Zone and eligible to participate in the Program.
* Give a copy of official program loan application. (All participating financial institutions
shall use the same program loan application, this application will be approved by all
participating loan program participants).
* Contact information for participating institutions.
* Charge an application fee of $300.
* Each financial institution will share result of applications approval/denial only with
NAUEA.
* The banks will select one person and an alternate who will act as contacts for the Program.
This group will meet on an “as needed” basis and act as the governing policy setting body
of the program.
This body shall meet at least four times during the first 24 months of the program. The first meeting
shall occur six (6) months from the recognized start of the program. It will meet regularly every six
months afterwards for the next 24 months.
The purpose of the first meeting will be to deal with any organizational details necessary at that time.
The second meeting shall occur on the year anniversary of the loan pool. At that time, any necessary
adjustments the governing board feels necessary shall be made to the program. The third meeting shall
be conducted 18 months following initial creation of the program. The meeting conducted during the 24th
month will be to make additional adjustments to the program, accept resignations from the program, or
end the program entirely.
CITY OF NEW ALBANY PARTICIPATION
All of the above is contingent upon the participation in the program by the City of New Albany. The City
of New Albany shall appropriate the amount of the 30% gap financing to the participating financial
institution at the time of loan closing. The loan payments on the gap financing loan will be disbursed by
the bank each month to the City of New Albany.