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Loans Incentive

Vacant Property Initiative

Summary

The Vacant Property Initiative helps overcome barriers in the full reuse of abandoned, idled or underutilized commercial and industrial properties within the City of Cleveland. Eligible activities are property acquisition, environmental site assessments, site clearance and demolition, “as is” and “as completed” property appraisals, new construction, and renovation.

Eligibility

Commercial, industrial buildings must be at least 20 years old and 40% or more vacant for at least 2 years.

Max Assistance

  • Projects less than $2M: loan size up to up to 25% of total project costs. Must create 1 permanent full time job for every $10,000 of City funds. 
  • Projects greater than $2M: loan size up to $720,000. Must create at least 25 new permanent full time jobs.

Use of Proceeds 

  • Property Acquisition 
  • Environmental site assessments and remediation costs 
  • Site clearance and demolition 
  • “As is” and “As Completed” property appraisals 
  • New construction 
  • Renovation

Equity Requirement 

Applicant must provide a minimum of 10% equity

Collateral

City to have a subordinate lien position on the Project Site and/or UCC lien on business assets. Other collateral may be deemed necessary.

Interest Rate

6% fixed 

Loan Term: 

Up to 5 years

Forgiveness

Maximum $180,000 forgivable