EDA and City Business Incentives
1) EDA Revolving Loan Fund
The City of Caledonia Revolving Loan Program provides low-interest loans to businesses to promote job creation and retention. These loans provide gap financing and may be used for land acquisition, new construction, site improvements, renovations, machinery and fixtures. Loan amounts vary depending on the extent of the project and job creation.
2) Commercial Rehabilitation Loan (Façade Improvement)
The City offers assistance to commercial property owners in the Downtown Redevelopment Area who want to make physical improvements to the exterior of their building. Up to 33% of the project cost will be a forgivable loan; 33% percent of the project cost will be a 3% low-interest loan; and 34 % of the project cost will be owner’s equity. The Commercial Rehab Loan Program is administered by the Community and Economic Development Associates (CEDA).
3) Tax Abatement
The City of Caledonia offers tax abatements for economic development purposes. A tax abatement allows a property owner to receive a refund on a portion of their yearly property tax for a parcel. The abatement is usually based on the increase in a property’s value from a construction or renovation project. The yearly percentage of the abatement and duration vary based on the amount of the business investment and job creation.
4) Tax Increment Financing
Tax-increment financing (TIF) uses the additional property taxes that a new real estate development project generates to assist with the costs of the development.
5) Downtown Redevelopment Program
The City of Caledonia has recently established the Downtown Redevelopment Program (DRP) to encourage property owners to redevelop underutilized or blighted properties in the central business district (B-1 zone) by providing funds for demolition, site cleanup, site prep, and renovation. For full details click link: DOWNTOWN REDEVELOPMENT PROGRAM
Business Assistance Form: Caledonia Revolving Loan Application