The Small Business Assistance Programs (“Programs”) is being established by the Orange Redevelopment Agency in an effort to promote and encourage property owners and tenants to rehabilitate commercial, retail and/or industrial properties located within the Orange Merged and Amended Redevelopment Project Area (“Merged Redevelopment Project Area”).  The Programs are comprised of six (6) loan programs designed to provide incentives to property owners and tenants to upgrade signage, enhance landscaping, improve exterior facades and other property improvements.  The Programs offer financial assistance in the form of forgivable loans to encourage new investment, increase property values, facilitate deferred or much needed interior and exterior property improvements, and to assist tenants and businesses seeking to start-up, expand or relocate into the City of Orange.  Except as otherwise provided below, property owners and tenants may apply for and, if approved, receive funding for up to, but not more than, two (2) loans under the Programs at one time.  A waiver of this requirement may be granted by the Agency’s Executive Director.

No application for an additional or new loan shall be approved at any time that (i) the outstanding principal balance of a loan (or loans) under the Programs and all sums due thereunder remains unpaid or unsatisfied, or (ii) all of the terms and provisions of the loan agreement or other documents evidencing the loan (or loans) have not been fully performed or satisfied.

The Property Improvement Loan Program is an interest-free loan program created to meet the needs of property owners and tenants to fund exterior façade and other on-site property improvements that are necessary to improve the visual appearance of the building and property in the Merged Redevelopment Project Area.  A “Qualified Small Business” under this program shall include property owners that have an ownership interest and/or tenants that have a leasehold interest in a commercial and/or industrial property located within the Merged Redevelopment Project Area.  Property Improvement Loan Program criteria are as follows:

o Minimum loans of $5,000 up to a maximum of $250,000;
o Applicant must contribute a minimum of 40% toward the cost of the project; applicant contribution must be made prior to disbursement of Agency loan;
o Loan shall be interest free;
o Loan repayment shall be deferred for the first 12 months from last loan disbursement;
o Assistance requests less than $60,000 shall be in the form of an unsecured loan;
o Assistance requests in excess of $60,000 shall require collateral and/or security in the form of a deed of trust or other appropriate security instrument; Administrative costs for title search and insurance to be included in the loan amount;
o Term of the loan shall be negotiated, but will not exceed 10 years;
o Upon timely repayment of the first 75% of loan, the remaining 25% of the loan balance shall be forgiven upon satisfying certain agreed-upon performance conditions;
o Qualified use of funds may include: exterior façade treatments, exterior painting, building and parking lot lighting, parking lot improvements including resurfacing and re-striping, utility under-grounding, architect and engineering fees and other needed on-site improvements; and
o All contractors performing the work shall be required to pay prevailing wage rates as established by the State of California Department of Industrial Relations.

The Old Towne Retail Loan Program is applicable to a Qualified Small Business that is either (a) a new business or an existing business looking to expand or relocate within the Old Towne Historic District looking to bring interior improvements into compliance with the Uniform Building Code, Uniform Mechanical Code, Uniform Plumbing Code, Uniform Code for the Abatement of Dangerous Buildings, National Electrical Code, California Fire Code, Building Security Standards and/or Seismic Strengthening Provisions for Un-reinforced Masonry Bearing Wall Buildings, as set forth in Chapters 15.04, 15.08, 15.12, 15.16, 15.20, 15.24, 15.32, 15.52 and 15.55, respectively, of the Orange Municipal Code (herein referred to as “Building Code Improvements”), and/or the Americans with Disabilities Act (“ADA”) standards, or (b) an existing business within the Old Towne Historic District not looking to expand but, instead, looking to bring interior improvements into compliance with the Building Code Improvements and/or ADA standards.  This program is designed to encourage a Qualified Small Business to upgrade interior improvements in compliance with current Building Code Improvements and/or the ADA standards.  A “Qualified Small Business” under this program encompasses a broad range of retailers including restaurants, food service establishments, and antique and specialty shops.  Applicants who are participating in the Mills Act Program do not qualify for the Old Towne Retail Loan Program.  Old Towne Retail Loan Program criteria are as follows:

o Minimum loans of $5,000 up to maximum of $100,000;
o Applicant must contribute a minimum of 40% toward the cost of the project; applicant contribution must be made prior to disbursement of Agency loan;
o Loans will bear an interest rate of three percent (3%) simple interest annually; 
o Assistance requests less than $60,000 shall be in the form of an unsecured loan;
o Assistance requests in excess of $60,000 shall require collateral and/or security in the form of a deed of trust or other appropriate security instrument;  Administrative costs for title search and insurance to be included in the loan amount;
o Loans will be structured over a five (5) to ten (10) year period and require annual payments of principal and interest.   Terms and amount of assistance may be modified in certain circumstances to reflect the lease terms;
o 50% of the loan amount will be forgiven by the Agency to provide an incentive to stay in operation depending upon the Agency’s analysis of need;
o All outstanding debt will be immediately due and payable upon closure, sale of the business to a third party, or default; and
o All contractors performing the work shall be required to pay prevailing wage rates as established by the State of California Department of Industrial Relations.

The Signage Incentive Program is a  matching loan program in which the Agency will contribute 50% in funding participation toward new signs in the Merged Redevelopment Project Area. The program provides for property owners and/or tenants seeking financial assistance to remove existing signs and upgrade and/or construct new signs that will meet the City of Orange building and zoning code requirements.   Signage Incentive Program criteria are as follows:

o Minimum Agency participation is $2,500; maximum Agency participation shall not exceed $30,000;
o 50/50 Matching Program. At time of application submittal, a Qualified Small Business must provide proof of documentation that it’s 50% contribution in matching funds is available for the project;
o Loan shall be interest free;
o Assistance in the form of an unsecured loan shall be forgiven upon satisfying certain agreed-upon performance conditions over a five-year term or other negotiated term;
o City and Agency must approve all sign designs and plans;
o Qualified use of funds may include: removal and disposal of original sign; new sign design concept; sign fabrication, installation related work including foundations and electrical work; permits and building fees; and
o All contractors performing the work shall be required to pay prevailing wage rates as established by the State of California Department of Industrial Relations.

The Landscape Enhancement Incentive Program is a matching loan program created to provide property owners and tenants with financial assistance to enhance their properties through landscape treatments.  Under this program, property owners can pursue much needed aesthetic improvements to their property thereby creating an environment more attractive, inviting and conducive for business activity.  General program criteria are as follows:

o Minimum Agency participation is $5,000; maximum Agency participation shall not exceed $60,000;
o 50/50 Matching Program. At time of application submittal, Qualified Small Business must provide proof of documentation that it’s 50% contribution in matching funds is available for the project;
o Loan shall be interest free;
o Assistance in the form of an unsecured loan shall be forgiven upon satisfying certain agreed-upon performance conditions over a five-year term or other negotiated term;
o City and Agency must approve all final landscape plans;
o Qualified use of funds may include: landscaping design and plans, construction of landscape improvements including demolition, planting, trees, shrubs, hardscape and masonry work, fencing and irrigation system; and
o All contractors performing the work shall be required to pay prevailing wage rates as established by the State of California Department of Industrial Relations.

The Restaurant Equipment Incentive Program provides for a loan of up to $30,000 to install and/or upgrade grease interceptors, grease traps or alternate methods as determined by the City’s Public Works Director.  A “Qualified Small Business” shall be required to maintain and clean the grease interceptors and/or grease traps for the life of the business operation.  The frequency of maintenance shall not be less than every six (6) months.  Based on actual generation of fats, oils and grease from the establishment, the maintenance frequency may increase or decrease as determined by the Agency and/or the City’s Public Works Department.

A “Qualified Small Business” shall include but not be limited to any facility preparing and/or serving food for commercial use or sale.  This includes restaurants; cafes; hotels; catering kitchens; bakeries; grocery stores with food preparation, food packaging, meat cutting, and meat preparations; and other food handling facilities not listed above where fats, oil and grease may be introduced into the community sewer system and cause line blockages and sewer overflows.  General program criteria are as follows:

o Minimum loans of $2,500 up to a maximum of $30,000;
o Loan shall be interest free;
o Upon timely repayment of the first 50% of loan, the remaining 50% of the loan balance shall be forgiven upon satisfying certain agreed-upon performance conditions;
o Term of the loan is negotiable up to 5 years;
o Qualified Small Business shall be required to maintain restaurant grease equipment and remain open for business during the term of the loan;
o Agency funds may be used for all costs associated with the installation of grease interceptors and/or grease traps including but not limited to design and engineering costs, equipment costs, permits and fees.  Funds may not be used for on-going maintenance and/or cleanup costs; and
o All contractors performing the work shall be required to pay prevailing wage rates as established by the State of California Department of Industrial Relations.

Recognizing the establishment, expansion, relocation of a small business comes with substantial start-up costs, the Fee Incentive Program was created to allow qualified small businesses to seek Agency assistance to offset costs associated development fees including but not limited to planning, parking, Fire Facility, Police Facility, Transportation System Improvement Program (TSIP), building, business license and utility fees.  The Fee Incentive Program provides financial assistance to shift dollars that would normally go to pay for development fees and refocus those dollars into marketing and outreach of the newly established business.  Fee Incentive Program criteria are as follows:

o Minimum Agency participation of $2,500 up to a maximum of $15,000;
o Assistance in the form of an unsecured loan shall be forgiven upon satisfying performance conditions over a five-year term or other negotiated term;
o Qualified Small Business shall not exceed 100 full and/or part-time employees;
o New businesses must commit to marketing and outreach efforts equal to 20-50% of the amount of requested Agency assistance under this Program; and
o Existing business intending to expand or relocate into the City must commit to marketing outreach or other performance-based conditions to be negotiated.  Examples of performance-based conditions may include: creation of new full and part time jobs, increase sales tax generation, and business hours of operation.