What Happened?
After Columbia invested $745,000 public dollars into downtown improvements, nearly $7 million private sector dollars were added to the projects.
Goal
In 2010, the Columbia Façade Improvement program in South Carolina received a total of $744,297 in federal funding to be loaned out to 40 businesses to fuel improvements to storefronts. Within the past five years since the loans were allocated, Columbia has reported $6.9 million private dollars have simultaneously been spent on improving the appearance of the city center, The State reported.
The funding distributed through the Façade Improvement program offer businesses with low-interest and forgivable loans to help pay for storefront improvements and upgrades. The maximum loan available is $20,000, The State reported.
Recipients of the loans are required to pay for 80 percent of the total cost of improvements before gaining access to public funding. This requirement, therefore, spurs interest in storefront maintenance and incites more long-term investments from the private sector.
The six blocks of Columbia’s central business district surrounding the State House received $425,829 in public loans. This investment alone catalyzed an additional $6,176,060 in private funding, The State reported.
Bangor
While some storefront projects are designed to encourage businesses to maintain their outward appearances, others are part of a larger plan to attract businesses into city centers to drive economic growth.
In Bangor, Maine, the city launched a downtown façade improvement program to increase economic activity. The city provided capital to businesses that have set up shop in the downtown area, requiring business owners match the amount with their own funding. Not only did many businesses leverage the funding to make improvements to their storefronts, but it encouraged several to buy rather than rent the property they were investing in, Bangor Daily News reported.
The Bangor City Council uses its annual Community Development Block Grant from the U.S. Department of Housing and Urban Development to support projects designed to flight blight and increase economic growth. A portion of this grant money is set aside for the city’s façade improvement program. This year, the program will be expanded to any commercial or mixed-use building in areas with at least 51 percent of the population low- or moderate-income, Bangor Daily News reported.
Cleveland Heights
Also responding to an increase in interest from the private sector, Cleveland Heights, Ohio, is expanding its storefront renovation program to help more local businesses improve their infrastructure. The city council will increase the maximum loan through the program from $25,000 to $100,000 for exterior improvement projects. The zero percent interest loan awarded to businesses will now account for up to 60 percent of the total project cost, up from 50 percent prior, Cleveland.com reported.
Furthermore, the city council has eliminated geographic restrictions on its rebate program, allowing businesses from other districts to apply for the financial aid. This will enable businesses in three special improvement districts to apply for a 30 percent rebate off project costs up to $25,000. Businesses outside these districts can also apply for rebates accounting for up to 45 percent of project costs up to $25,000, Cleveland.com reported.
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