Buchanan Economic Incentive Program

Economic incentives provided by local governments are powerful tools for fostering growth and development in a community. When private investors are drawn to a community through these incentives, they often spark further investment, creating a multiplier effect that can benefit surrounding neighborhoods and businesses.

Program Goals

• To enhance the physical appeal and functionality of businesses, contributing to the revitalization of the local economy through the creation of jobs and additional tax base.
• To encourage investment in areas at risk of flooding, ensuring businesses are better equipped to handle potential flood events.
• To support business growth and sustainability by helping businesses overcome the financial burden of property improvements and risk management.

Program Overview

The Buchanan Economic Incentive Program is designed to foster economic growth, improve the aesthetics of the community, and help businesses build resilience against environmental risks. This program provides up to $20,000 in funding to eligible businesses and property owners for a variety of improvements, including facade enhancements, business equipment and space buildout, and flood insurance assistance. The goal is to enhance the overall appearance and functionality of commercial properties, support local businesses in their growth, and ensure businesses are adequately prepared for flood-related risks. The City Commission may vote to lift this cap and make investments over the $20,000 cap for catalyst projects which are a priority for the community. The three focus areas for the Buchanan Economic Incentive program are as follows:

1. Facade Improvements: Financial support to enhance the exterior of commercial buildings, including but not limited to signage, windows, doors, paint, lighting, and landscaping. The goal is to improve the visual appeal of businesses and contribute to the overall aesthetic of the area. The priority use for this element of the program is intended to be the front facades of buildings; however, rear facades will be considered if the entry serves as public entryway from a public space or it being done as temporary access during significant construction projects that bar front access to the property.
2. Business Equipment and Space Buildout: Assistance for businesses looking to upgrade or install new equipment, as well as improvements to interior space, such as renovations, layout modifications, and necessary upgrades to meet business needs. This element of the program can be used for both current and new businesses.
3. Flood Insurance Assistance: Funding to support the purchase of flood insurance policies for eligible businesses located in designated flood zones. This provides financial protection and ensures that businesses can remain resilient in the face of flooding risks.

Program Eligibility Criteria

• Business Location: The program’s primary focus is on properties within the community’s central businesses district targeting commercial or mixed-use properties. The program can be expanded beyond the central business district for projects that are deemed to support a specific policy initiative of the City.
• Project Types: Eligible projects include facade improvements, business equipment and space buildout, and flood insurance assistance. Projects that combine more than one category of assistance are welcome, provided the total investment aligns with program guidelines.
• Matching Funds Requirement: Applicants must demonstrate at least 50% of total grant award in matching funds for each investment. The match can come from private sources such as business loans, personal funds, or other private sector investments. The city's contribution will be a maximum of $20,000, and applicants must provide proof of the matching funds before the disbursement of the grant.
• Limit on Funding Per Project/Property: A single project/address may receive funding only twice within a 10-year period. This ensures that a broad range of businesses in the city can benefit from the program over time.
• Flood Insurance Eligibility: Businesses requesting flood insurance assistance must be located in designated flood zones or areas identified by the city as having a high flood risk. The program is only open to new businesses locating in the community and must be approved prior to the subject property being occupied by the applicant. Properties will only be considered eligible for the flood insurance portion of the program if the subject flood insurance is a required condition of financial institution investing in the project.  The purpose of this element of the program is to assist with the leveraging of new funding into the community’s buildings and businesses.

Program Application Process

• Pre-Application Consultation: Interested businesses must first schedule a consultation with City staff to discuss eligibility, project goals, and required documentation.
• Application Submission: Applicants must complete an application form detailing the scope of the proposed project, the amount of funding requested, and the proposed matching funds. Additionally, applicants will need to submit quotes, plans, or other documents supporting the project's costs.
• Project Review and Approval: Once the application is submitted, the city commission will review the project proposal, ensuring that it meets program guidelines and requirements. The city may request additional information or adjustments to the project before approval.
• Agreement and Fund Distribution: Upon approval, a formal agreement will be established outlining the terms of the funding, including milestones and deliverables. The city will provide the grant in phases, contingent upon the completion of specific project milestones. Final reimbursement will occur once the project is completed, and all required receipts and documentation are provided.

Program Funding Limitations

• Maximum Award: The maximum grant award available is $20,000 per project. For projects involving multiple types of assistance (e.g., facade improvement and business space buildout), the total combined city contribution cannot exceed $20,000.
• Investment Cap: An address may receive funding only for two separate projects at a single address within a 10-year period. Once the single project/address has reached this limit, no additional funding will be available until after the 10-year period has passed. An address is not guaranteed funding for two projects within this window but are eligible for up to two investments at a single address during the referenced 10-year period.  If a business is operating from two separate adjoining addresses that are interconnected serving as one business, the two properties shall be viewed as one property for the Business Equipment and Space Buildout and Flood Insurance Assistance components of the Buchanan Economic Incentive Program.  However, the two addresses can apply and will be viewed separately for the Façade Improvements portion of the program if both addresses have separate functioning ingress and egress points on each building that are available for public use. 

Program Terms and Conditions

• Eligible Expenses: The funds must be used exclusively for the improvement of the business property as outlined in the approved project proposal. Ineligible expenses include routine maintenance, operating costs, and non-project related expenditures.
• Completion Requirements: Projects must be completed within 12 months of receiving the grant. Extensions may be requested in cases of unforeseen delays, but approval is at the discretion of the city.
• Monitoring and Reporting: The city reserves the right to conduct periodic inspections of the project to ensure that the work is progressing as planned and in compliance with city regulations. Grantees must submit progress reports and final documentation showing completion of the project.
• Compliance with Regulations: All projects funded by the program must comply with local building codes, zoning laws, and any other relevant city ordinances or regulations.
• Funding Availability: Funding shall be made available on a first-come, first-serve basis. Once the budget for the fiscal year has been utilized, new funding will not be available until allocated by the Buchanan City Commission for the subsequent fiscal year.
• Repayment: The funding made available under the program is made as a 0% interest forgivable loan with 1/3 of the investment forgiven each year over a three-year period. The City will require a lien to be in place on the building assisted or equipment purchased with the funding until the four­ year compliance period is met. The grantee of the forgivable loan will be responsible for the costs to file the required lien with a title company approved by the City. The City lien will be secondary to any traditional commercial financing in the property or business.