Revolving Loan Grant
In Fiscal Year 2010, the U.S. Environmental Protection Agency granted Grand Traverse County's Brownfield Redevelopment Authority (GTCBRA) $1 million through the Revolving Loan Fund (RLF) Program. The RLF grant provides funding for the County to capitalize a revolving loan fund and to provide subgrants to carry out cleanup activities at Brownfield sites. Through this grant, the EPA seeks to strengthen the marketplace and encourage stakeholders to leverage the resources needed to clean up and redevelop Brownfields. When loans are repaid, the loan amount is returned into the fund and re-lent to other borrowers, providing an ongoing source of capital within our community. $800,000 of the GTCBRA RLF is earmarked for petroleum Brownfields, and $200,000 is earmarked for hazardous substances. The RLF is well complemented by GTCBRA's Local Site Remediation Fund (LSRF), which operates in a similar manner and shares a combined application (PDF) with the RLF.
RLF and LSRF funds are available for use throughout the county on eligible Brownfield properties. RLF program requirements and eligibility policies are outline in the GTCBRA's EPA RLF Policy and Procedures (PDF). Overall, it is important to note that the goal of the GTCBRA RLF is to provide "gap" financing for projects in the traditional lending market, not to fund an entire redevelopment project as a stand alone measure.
Local townships, villages, and cities are encouraged to promote the availability of these funds with stakeholders, realtors, and developers in their efforts to redevelop properties. Key selling points to consider include:
Reduced interest rates
Flexible repayment terms and loan amortization
Flexibility in acceptable forms of collateral
Quick loan application review
Low transaction costs
Low processing fees
Ability to leverage federal financial involvement to attract other sources of funding, particularly tax increment financing with an approved Brownfield Plan