Loan Pool

Uptown Greenwood Development Corporation
UDAG Loan Policy Guidelines

• The main purpose of this loan program is to provide funds for improvements/renovation (brick & mortar) to real estate in the Uptown Greenwood Special Tax District assisting current Uptown business owners or businesses wanting to locate in the Uptown area.
• Loans will be made to property owners as well as leasees. Leasees must provide the loan committee a copy of their lease agreements and permission from the property owner for improvements to be made.
• Each applicant will be required to complete a loan application and submit a letter outlining the loan amount requested, the purpose of the loan, and a brief description of their business. A completion date of the project should also be included.
• All loan requests over three thousand dollars will require the completion of a personal or company financial statement, depending on the type of business organization. All approved loans will be personally guaranteed by the borrower.
• When the property is owned by the applicant, a mortgage will be placed against the property securing the loan amount. Any loan over $5,000 should be secured. If the property is not owned by the applicant, the loan request will be considered unsecured unless other collateral exists. A mortgage will be recorded only when sufficient equity exists to cover the loan proceeds.
• Loan terms are normally not to exceed five years.
• The interest rate will be set 2% below the current prime rate of interest for the life of the loan.
• The total amount each applicant may receive should not exceed 50% of the total cost of improvements.
• The dollar amount available to an applicant may not exceed 50% of the total funds available at any given time. The applicant may reapply for additional funds three months after the first loan is disbursed.
• Funds will be disbursed based on final invoices. Large loan requests may be funded based on partial completion and at the discretion of the loan committee.
• All loan requests will be submitted to the loan committee for review. It will be the responsibility of the loan committee to gather any and all information needed to make a recommendation to the Board of Directors. All loan approvals require a vote of two-thirds majority of the Board.
• The loan applicant is responsible for paying all costs involved in closing the loan. These typically include legal and recording fees and documentary stamps.
• The Uptown Greenwood Development Corporation does not discriminate against applicants based on sex, race, religion, color, national origin, marital status, handicap or age.

For more information, contact uptown@cityofgreenwoodsc.com.

Uptown Greenwood Development Corporation
P.O.Box 202
Greenwood, SC 29648
(864) 942-8448