By Leslie Collins
Northeast News
August 1, 2012

Storefronts along Independence Avenue could soon look spiffier thanks to a new Facade Improvement Loan Program.

Christine Kahm, program manager at KCMO CDE (Community Development Entity) detailed the program during the July 24 Northeast Kansas City Chamber of Commerce meeting.

“We’re really excited about helping business owners spruce up their facades,” Kahm said.

KCMO CDE has partnered with the Hispanic Economic Development Council and the Economic Development Council to administer the program made possible through the New Markets Tax Credit Program.

The pilot loan program targets both the Independence Avenue corridor and the Troost corridor.

Asked how CDE chose the two geographical areas, Kahm said the New Markets Tax Credit Program stipulated the funding be distributed in an area considered “highly distressed.” Criteria included poverty levels, unemployment rates and average median income, she said.

“What we’re trying to do is create anchors in the distressed and highly distressed communities in the city,” Kahm said.

In the past CDE has issued loans for projects totaling $5-to-$10 million each, like the renovation of the Boys & Girls Club facility.

However, not all businesses need that much funding, she said.

“We noticed people have smaller needs and we didn’t have a program to meet that need, so we created the Facade Improvement Loan Program,” Kahm said.

CDE has $150,000 to loan to qualifying businesses and individual loans can total up to $50,000. Each loan will come with a three to five-year term with a fixed five percent interest rate. If a business owner fulfills the maintenance terms of the loan contract, he or she will receive up to 10 percent loan forgiveness at the end of the loan.

Loans can be used to help with a number of facade improvements including masonry repair, awnings, exterior paint, fence repair, lighting, landscaping, window and door replacement, among others. However, improvements must align with a neighborhood’s design guidelines.

Pre-applications for the Facade Improvement Loan Program are due Aug. 31. Applications will not be accepted after that date. Pre-applications will ask business owners to describe the proposed project and financial estimate needs. Then, applicants will be sent a more detailed application to return to CDE.

Kahm said she expects CDE to begin awarding loans by the end of 2012.

To apply for a facade loan, visit kcmo.cde.org or call the CDE office, (816) 216-1851.