How the Program Works

 

The following example illustrates how the loan could potentially be structured for downtown property owners. 

 

Example:  Business A is purchasing a building in downtown Johnson City for $100,000.  The business is also making $80,000 worth of renovations to the building for a project cost of $180,000.  A down payment of $36,000 (20% of $180,000) and closing costs of $4,000 total $40,000.  The financing could be as follows:

 

Participating Bank:

$144,000

 (80% for 15 years at prime plus 1.5%)

Downtown Loan Program:

$20,000

 (for 10 years at 4%)

Business A:

$20,000

 
 

$184,000

 

Northeast Tennessee Economic Development Corporation