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Northeast businesses aiming to improve their facade will now have access to assistance.
Through Community Development Block Grant funds, the City of Kansas City has received $200,000 for a facade rebate program for small businesses.
In addition, Central Bank of Kansas City has partnered with the Northeast Kansas City Chamber to offer secure loans up to $25,000 at a 6 percent interest rate.
Currently, five facade rebates are available in each of Kansas City’s 10 districts. If some districts fail to use their rebates, those rebates will be available on a first come, first served basis in other districts. Rebates are available up to $5,000 on a matching fund basis. To receive the maximum of $5,000, a business must spend a total of $10,000 on facade improvements.
“It’s important for people to understand your plans have to be approved before any work is done, and it is on a reimbursement basis,” said Marti Lee, executive director of Southtown Planning Center. “You have to be approved, do the work and then you get reimbursed.”
Facade improvements may include painting, windows, lighting, awnings, among others. Only improvements to the front of the building would qualify, Lee said.
Since the rebate program is matching, Central Bank of Kansas City decided to offer a facade rebate loan program for Northeast businesses.
Loans through Central Bank can range from $3,000 to $25,000 and the term is up to three years.
“I just think it’s a great companion to the rebate program,” said Tom Soptick, Northeast Chamber Board member and Central Bank assistant vice president portfolio manager. “In addition, as a stand alone product, it’s a great product. I don’t know of anyone else offering that.
“We’re really hoping that people will take advantage of not only our loan product, but the facade rebate program.”
In addition to normal underwriting, a business must also be a Northeast Chamber member to qualify for the loan at Central Bank.
“There are very few opportunities for grants for businesses,” Lee said. “For small businesses, the facade rebate program provides enough of an incentive that they can really improve the appearance of the exterior of their building.
“What we’ve seen over the years is a ripple effect. You get your business fixed up and then the neighbors get theirs fixed up. It can really impact a commercial area.”
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