Business Development

Community Development: Business Development Loans

Administered by the Bangor Community Development Department, this program is designed to retain and create jobs, with 51% going to low to moderate income persons. The funds are used to leverage additional private investment, alleviate physical and economic distress, and expand tax revenues.

Loans can be used for acquiring real property for economic development purposes; for acquisition, construction, reconstruction, rehabilitation, and installation of public facilities, site improvements, utilities, commercial or industrial buildings and structures, and other commercial or industrial real property improvements. Funds can also be utilized to provide assistance to private for-profit entities to carry out an economic development project.

To be eligible, projects must be located in Bangor and must create or retain jobs principally for low- and moderate-income persons. Loans must leverage private investment at a minimum ratio of three Dollars ($3.00) in private funds to each one-Dollar ($1.00) loaned.

Loans cannot exceed Ten Thousand Dollars ($10,000.00) for each job generated and/or retained. Due to the limited amount of available Community Development funds, the maximum amount of a loan is $100,000 unless otherwise approved by the City Council.

The interest rate for a Business Development Loan is established by a committee that strives to establish an interest rate that supports the economic health of the financed project while maximizing the rate of return to the Business Development Loan Program. The term of the loan is based on considerations including the purpose of the loan and the collateral that secures it.

A project must meet the City's established Community Development Program goals.  This can be done through the creation or retention of jobs principally for low- and moderate-income persons or by removing architectural barriers for handicapped persons in places of employment or buildings of public access and bringing properties into conformance with City Codes. An applicant must have adequate capacity to repay the loan, be current on all City taxes and fees, and provide adequate collateral to secure the loan.

Business Development Loans may be used to finance the following types of activities and related costs:

The acquisition, construction, reconstruction, rehabilitation, expansion, and/or installation of public facilities, site improvements, utilities;

commercial, mixed-use or industrial buildings and structures, and other commercial or industrial real property, capital equipment and improvements;

The removal of architectural barriers which restrict the mobility and accessibility of elderly or handicapped persons;

Working capital or operational funds;

or such other assistance to private, for-profit entities as may be deemed necessary or appropriate to carry out an economic development project.

Activities commenced or completed prior to Loan approval are not eligible for Program financial assistance.

The borrower must agree to follow the procedures and conditions of all established and applicable municipal ordinances in undertaking the funded activity and must comply with all federal and state requirements applicable to the project.