North Gateway Commercial Loan Program

​Salem has created a building rehabilitation/restoration commercial loan program to encourage business and property owners in the North Gateway Urban Renewal Area (URA) to improve their store fronts and properties, and contribute to the area’s revitalization.

Guidelines​

The Borrower and the property must meet the minimum requirements as outlined below; additional requirements may apply. Please read all requirements before submitting an application.

Loan terms

Maximum Loan Amount: $100,000
Interest Rate: 3% fixed rate
Term: 10 years fixed*
Loan Fee: $500
*Length of term may be extended to 20 years to coincide with terms of primary lender where Urban Renewal Agency is in a second lien position.

Eligible borrower

  • Property owners who can show fee title
  • Business owners who show written evidence that property owner has authorized work for which application is made
  • Tax-exempt property owners
  • Applicants are eligible for only one loan every five years, this includes all legal entities that the applicant is associated with

Eligible property

  • Industrial
  • Commercial
  • Mixed-use

Eligible activities

All normal and reasonable soft and hard costs directly associated with rehabilitation/restoration or construction of a qualified project is eligible. Tenant improvements are subject to an executed lease and a cost per square foot, which has been approved during underwriting. Equipment must meet the IRS definition of a capital asset and remain in the URA for its useful life.

Ineligible activities

  • Acquisition
  • Loan fee
  • Refinance
  • Training
  • Staffing costs
  • Personal property
  • Reimbursement of hard costs prior to loan award
  • Organizational expenses

Application documents

North Gateway Commercial Loan Program34 KB
Urban Renewal Agency Loan Application35 KB

Contact us

Sheri WahrgrenDowntown Revitalization Manager
Mailing address:
350 Commercial St NE
Salem OR 97301
TTY/TDD: 

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