Economic Development Authority Loan Program

EDA Loan Program Guidelines for Roof/Structural Building Repairs in the C-1 Commercial District

The Economic Development Authority (EDA) Loan Program aims to support commercial property owners in the C-1 Commercial District of Springfield, MN, by offering financial assistance for roof or other structural repair projects that enhance the longevity and safety of commercial buildings in this district.

Maximum Loan/Grant Amount: Up to $40,000 total with $30,000 loan and $10,000 grant. Loan fees will be deducted from the loan proceeds.

Loan Details

Maximum Fund Limit: $200,000

  • Grant Portion: 25% of the project costs will be considered a grant towards the building improvements up to a maximum of $10,000.
  • Primary or Secondary Lender:
    • The EDA may act as the primary lender for loan/grants up to $40,000.
    • If the cost of the project exceeds $40,000, the EDA will take a second position behind the primary lender.
  • Interest Rate: A low interest rate of 2% per annum on the loan balance beginning upon distribution of funds.
  • Loan Term: Up to 10 years, subject to project scope. If the building is sold, the loan shall be repaid at the time of closing. If the closing should occur before the construction project is completed, any funds given to the applicant will be returned to the city including grant funds.
  • Collateral: Applicant shall provide collateral equaling the loan amount in the form of a mortgage on the property and additional collateral if necessary.
  • Insurance: Property insurance covering the loan amount is required for the term of the loan. The Springfield EDA must be listed as an additional insured/mortgage holder.
  • Loan Repayments: The loan amount will be amortized over 10 years with equal monthly payments due on the first of each month after the loan is advanced. No loan payment will be less than $100 per month. Payments shall be set up as an automatic bank draft from the loan recipient's bank account. There will be no penalties for early repayment.
  • Eligible Costs: Funds must be used exclusively for roof repair or replacement, or other structural building issues amounting to charges over $10,000 including materials, labor, and associated costs necessary for project completion.
  • Inspection Requirements: A final inspection will be required, before final payment is made, to ensure project completion and compliance with program guidelines.

Eligibility Criteria

  1. Location: Property must be commercial property located within the C-1 Commercial Zoning District of Springfield, MN.
  2. Ownership: Applicant must be the property owner.
  3. Taxes: Property taxes and city utilities must be current for all properties and accounts in the applicant’s name with the City of Springfield or Springfield Public Utilities.
  4. Compliance: Projects must be completed by a contractor licensed by the state of Minnesota and comply with local zoning and building regulations.
Program Application

Application Process

Step 1

Application Form

Applicants must complete the Springfield EDA Loan Program Application and include the following information:

  • Proof of property ownership.
  • Provide proof of insurance.
  • Detailed project proposal, including licensed contractor estimates.
  • Applications may include pictures of the current building issues or damages.
  • Financial documentation as required by the EDA.
Step 2

Application Review

The Community Development Director will review the application for completeness and compliance before adding it to the next available EDA meeting.

Priority for Community Impact: Projects that contribute to the district’s economic vitality may be given priority at the EDA’s discretion.

Step 3

Approval

Upon approval by the EDA, loan terms will be finalized. Loan fees will be paid out of the loan proceeds (i.e. mortgage recording and mortgage tax and documentation fee, UCC filing, etc.). Checks will be made payable to the property owner and contractor jointly. 50% of the remaining funds will be disbursed at the time of the loan closing and final payment including the grant portion will be disbursed after a final inspection of the completed work.

Contact Information

For more information or to discuss your application,
please contact Heidi Wersal, Community Development Director, at 507-723-3517 or Heidi.wersal@springfieldmn.org.

Roof/Structural Building Repair Loan Program Application

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Applicant Information

Property Owner Name(Required)
Property Address
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