Business Development
The purpose of the City of Forest City Micro-Business Retention and Recruitment Loan Programs is to assist in the creation and retention of small businesses with 1–5 employees in the downtown Forest City business and commercial zoning district.
Retention & Recruitment Programs:
Downtown Business & Commercial Zoning District Micro-Business Forgivable Loan Program
- Micro-Business Forgivable Loan amount of up to $3000, based on need.
- Application for loan will be available from and submitted to the City Clerk’s Office.
- Application will be reviewed by the Business & Industry Committee along with representatives from Grow Forest City and Forest City Economic Development.
- Application form must include budgets and plans for use of loan.
- Use of loan funds limited to signage, marketing, and storefront improvements. Must submit a list of valid estimates prior to approval. Invoices need to be submitted before funds are released.
- Loan will be forgivable at 20% per year for five years ($600 per year forgiven); if recipient goes out of business, owes the balance upon closing.
- Applicant must have a relationship with a local bank.
- Program limited to a total of $30,000 per fiscal year.
City Council’s Approval of Forgivable Loan Application(s) Subject to:
- Signed copy of City of Forest City Application for Business Financial Assistance
- Attachment showing budgets and plans for use of funds (valid estimates)
- Signed lease showing business is located within the downtown commercial business district
Downtown Business & Commercial Zoning District Micro-Business Supplemental Loan Program
- Supplemental loan amount of up to $15,000 per application.
- Loan to be used as supplement to commercial financing and owner’s equity for start-ups and expansion.
- Application for loan will be available from and submitted to the City Clerk’s Office.
- Application will be reviewed by the Business & Industry committee along with representatives from Grow Forest City, Forest City Economic Development, MBT Bank and/or TSB Bank. The Forest City City Council will make the final determination regarding the loan.
- Applicants are required to have a business plan, meet with SBDC, and attend the Fast Trac business planning course.
- Cash flow statements must be submitted to the Business & Industry Committee for review on a quarterly basis for the first year.
- Loan will be repaid at 3% interest-only for 2 years; then 20% principal plus 3% interest for next 5 years until loan is paid off.
- Applicant must have a relationship with a local bank.
- Program limited to a total of $60,000 per fiscal year.
City Council’s Approval of Supplemental Loan Application(s) Subject to:
- Signed copy of City of Forest City Application for Business Financial Assistance
- Signed lease showing business is located within the downtown commercial business district
- Review of Due Diligence Checklist
- Review of Business Plan
- Credit check performed on the applicant
Due Diligence Checklist
For the Downtown Business & Commercial Zoning District Micro-Business Supplemental Loan Program
This document will need to be presented along with your business plan.
Application for Business Financial Assistance
