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| Forward Lancaster Revolving Loan Pool |
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Forward Lancaster, Inc. provides assistance to new and existing businesses through a revolving loan fund. Projects eligible for this program include facade and/or interior renovation, leasehold improvements, and/or acquisition of commercial or retail property located in the City of Lancaster. With the exception of new business construction, the real estate acquisition component of the program requires a "significant" interior or exterior renovation/improvement project to accompany the purchase. "Significant" renovation/improvement will be defined as the greater of $10,000 or 20 percent of the project cost or purchase price. Projects must complement Forward Lancaster's vision of a growing commercial base or downtown revitalization, as indicated in the organization's mission statement. Decisions regarding eligibility of a specific project will be settled by Forward Lancaster. |
| The following specifications will considered "official" for the Forward Lancaster Revolving Loan Pool: | |
| Designated Areas | City of Lancaster |
| Maximum Loan Amount | Maximum loan(s) advanced under this program will be $250,000 per commercial entity. Each institution will keep loans up to $25,000 in-house. Loans above $25,000 may be participated out pro rata. Each institution maintains the right to use its own underwriting criteria when considering participation, providing a decision can be rendered in a timely fashion. |
| Minimum Loan Amount | The minimum loan will be $25,000 |
| Interest Rate and Term | Loans under this program may take up to 10-year amortization on renovation or leasehold improvement and up to a 20-year amortization on real estate purchase or post-construction permanent financing. The rate will be determined by the consortium of participation financial institutions, based on the Forward Lancaster Loan Pool index rate as adjusted for collateral, credit-worthiness and terms. Maximum initial loan is five years. At first maturity, the rate will be adjusted at the then current Index Rate and fixed for another five year period, assuming the loan is performing. |
| Index Rate | The Forward Lancaster Loan Pool Index Rate is determined by the consortium o participation financial institutions and is subject to review at least quarterly. The rate shall be locked in for a loan pool applicant at the time of commitment. Loans may be written with marginally reduced rates and relaxed terms, subject to underwriting guidelines. |
| Loan Fees | In keeping with the intent of offering affordable loans for this project, fees will be limited to lenders' out-of-pocket costs and a modest documentation fee to lead bank on participation loans. |
| Eligible Activities | Projects eligible for this program include facade and/or interior renovation, leasehold improvements, and/or acquisition of commercial or retail property located in the above mentioned "Designated Area". With the exception of new business construction, the real estate acquisition component of the program requires a "significant" interior or exterior renovation/improvement project to accompany the purchase. "Significant" renovation/improvement will be defined as the greater of $10,000 or 20% of the project cost or purchase price. |
| Projects must complement Forward Lancaster's vision of a growing commercial base or downtown revitalization, as indicated in the organizations mission statement. Decisions regarding eligibility of a specific project will be settled by Forward Lancaster. | |
| Underwriting | Overall credit worthiness will be determined by the participation lenders, based on standard industry underwriting practices. |
| Participating Financial Institutions | American Bank & Trust Wisconsin, Citizen's Bank, First National Bank of Platteville, Heartland Credit Union, M&I Bank |
| Commitment | Each participating lender will commit $250,000 to this pool, for a total of 1.25 million. |
| Sunset | Each participant's commitment for funding this program will expire at the end of each calendar year, at which time only used or committed dollars would remain in the pool. The participating lenders can reevaluate their level of participation for the following year. |
| The terms and conditions details above are a broad outline of the Forward Lancaster Revolving Loan Pool and are not all-inclusive. Participation financial institutions, in cooperation with Forward Lancaster, will determine individual project eligibility, credit worthiness, collateral, and repayment terms. Terms and conditions may change at a future date. If you require more information, please contact Scot Simpson, City Administrator, City of Lancaster at 723-5196. | |
| Application approved by Forward Lancaster, Inc. will be submitted to all participation lenders with financial information required by lenders. Lenders agree to share equally loans approved by more than on participation lender. | |
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| Lancaster City Hall 206 S. Madison Street Lancaster, WI 53813-1799 Phone: (608) 723-4246 Fax: (608) 723-4789 E-mail: CityHall@lancasterwisconsin.com | Lancaster Area Chamber of Commerce 206 S. Madison St., PO Box 292 Lancaster, WI 53813 Phone: (608) 723-2820 Fax: (608) 723-7409 E-mail: Chamber@lancasterwisconsin.com  |
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