Downtown Mainstreet, Inc. (DMI)
Lender Commitment Program

PROGRAM PURPOSE:

Downtown Mainstreet, Inc. (DMI), together with:  Wells Fargo, State Bank of La Crosse, Coulee Bank, US Bank, M&I (Marshall & Iisley) Bank, Associated Bank, Community Credit Union, Altra Federal Credit Union, Fortress Bank, Merchants Bank, River Bank, and Citizen’s State Bank have created a new loan pool totaling $5 million dollars to be used to improve property in historic downtown La Crosse.  The purpose of the program is to continue to support the outstanding economic redevelopment of the Central Business District (CBD) that has occurred.  This program will assist in fostering a more attractive climate for investment in the CBD and invite new merchants, services, residents, and professionals into the area.

ELIGIBLE PROJECTS:

Eligible projects include interior and exterior remodeling, creating low to moderate income
 housing projects in the upper floors of

identified properties, parking lot, signage, lighting, and landscaping improvements.  Projects NOT eligible for funding would be such things as purchase of movable equipment, refinancing of previous loans, or loans for working capital. (Equipment funding may be considered up to 50% of project cost)  DMI Design Committee will have to approve all projects involving exterior design, including signage.  (Signed DMI Design and Consultation Agreement must accompany the loan application submitted to a lender).

 LOAN PROGRAM:

Loans will be available to downtown building owners (tenants may apply with certain restrictions, see below) at a variable loan rate of prime minus 2%, fixed for 5 years.  After that, the loan rate would revert to prime for the remainder of the loan term.  There will be a 10 year amortization – with the possibility of longer term amortizations for real estate secured loans.  Collateral requirements will vary with each project and will be determined by the participating lender as individual projects are reviewed.  A minimum of 10% equity into the project is required.

  MAXIMUM LOAN:  $250,000.                                        MINIMUM LOAN:  $10,000.

ELIGIBLE APPLICANTS:

Borrower/s should be the building owner.  A tenant may apply, but the building owner would be asked to cosign the loan.  If the

building owner is not willing to get involved, the project may still qualify; however, the loan amortization would have to match the

remaining term of the underlying lease.  The tenant applicant would have to provide a copy of the lease as one of the preliminary loan

documents.  Options to renew a lease will NOT be included when determining the remaining lease term.  Borrower/s must be paid

member/sponsors of Downtown Mainstreet, Inc. at the time of processing of the application.  If not a member of DMI, a $500 non-

refundable payment must be made to DMI prior to processing of all loan documents and design documents.

REQUIRED LOAN DOCUMENTATION:

Each participating lender will underwrite loans according to their individual underwriting standards.  Applicants are required to provide

the following basic information:  ** A  copy of Articles of Incorporation if the borrower is a corporate entity.  Copies of Partnership

Agreements if appropriate.  ** Current balance sheet and income statement.  ** At least 3 years of balance sheets and income statements.  Provide what is available if the business hasn't existed that long.  ** List of all business owners together with their percent of ownership.  ** Previous year's federal income tax return (personal and business).  ** Cost breakdown of the proposed project showing all proposed subcontractors and supplies.  ** Copy of lease, if appropriate.  ** Approved DMI Design and Consultation Agreement (if applicable). 

Additional information may be required at the option of each participating lender.

 MATURITY OF PROGRAM:

The funds will be available until they are used up or until December 31, 2007, whichever comes first. The program will then be

reviewed and may or may not be extended depending upon its overall success.

 TRADE AREA:

The trade area open to this program matches that of the "City Vision 2020 Master Plan".  This program has now expanded its

previous boundaries.  Basically, that would be 8th St. on the east, the Barron Island area (Park Plaza) on the west, Causeway Blvd.

on the north, and Division St. on the south.  (DMI and Lenders will review boundaries, periodically and make changes when

appropriate).

 PARTICIPATING LENDERS:    The following institutions have agreed to participate in this program:

Wells Fargo, State Bank of La Crosse, Coulee Bank, US Bank, M&I (Marshall & Iisley) Bank, Associated Bank, 

Community Credit Union, Altra Federal Credit Union, Fortress Bank, Merchants Bank, River Bank, and Citizen’s State

Bank.

•       Applicant/s must select one of these participating institutions.  Applicant will supply institution of their choice all required loan documentation.  Must have approved DMI Design and Consultation Agreement (if applicable) included in the required loan documentation.

•       Individual lending institutions can negotiate any of the terms listed above.

 HOW TO APPLY FOR A LOAN: Applications for the program are available at the DMI office as well as at the office of each of the

participating lenders.  FOR FURTHER INFORMATION CONTACT:  Executive Director, DOWNTOWN MAINSTREET, INC.

712 Main Street, La Crosse, WI  54601   (608) 784-0440