Capital Improvements Low Interest Loan Program
Madison County Community Development administer the Capital Improvements Low Interest Loan Program which provides capital improvement financing to municipal park departments, recreation districts and governmental entities that have a portion of their budgets allocated for the development and/or administration of parks and recreation projects and programs in Madison County. Loans are provided at three percent interest for capital improvement projects. The amount loaned is based on the total cost of the project, the public benefits provided by the project, the local government's financial condition and needs, and the amount of loan funds that are available.
Loan funds up to $200,000 are available at three percent interest for terms generally not exceeding three to five years. The term of the loan will depend on the fiscal capacity of the loan applicant and the availability of funds.
Funds available through the Capital Improvements Low Interest Loan Program can be used for playground equipment, land acquisition, facility improvements, fencing, lawn maintenance equipment, pool equipment (not chemicals) and/or multiple projects. Projects being assisted under this program must be owned and maintained by the loan applicant. If the loan applicant decides in the future to dispose or sale the property assisted by the loan program, the proceeds from the sale must first be used to pay off the loan.
Madison County Community Development conducts a review of each completed application on a first-come, first-served basis. Applications received by the 25th of each month will be acted upon the following month. As part of the review process, MCCD staff will meet with the loan applicant to learn the full extent of the proposed project and to explain the conditions and requirements of the loan.
The following questions will be considered in reviewing the loan application:
- What is the documented need for the project?
- Can the project be financed solely from local revenue sources or at market interest rates and terms?
- Is the project scheduled for construction according to the applicant’s capital improvement plan or is there a documented immediate need?
- To what extent will the loan be secured?
- Is there a sufficient source of revenue to repay the loan?
For additional information on the Madison County Capital Improvements Low Interest Loan Program contact James Arnold at (618) 296-4247.