The purpose of the Seymour Main Street Down Payment Assistance (DPA) program is to increase investment interest in the downtown area through active tenants and property owners thus reducing the vacancies in downtown and creating economic viability. The DPA will offer either or the lesser of: 5% of purchase price up to $10,000 in financial assistance. The program is intended to support and compliment the current Façade, Awning and Signage Grant ProgramAwning and Signage Grant Program as well as Loan Program.
DPA Program Requirements
The DPA will only be offered to businesses located within the Seymour Main Street boundaries. An existing business in Seymour outside the Main Street boundaries would not be eligible for funds unless it opens an additional location with the current Main Street district.
Requirements for DPA assistance include but not limited to the following; new or existing business looking to acquire current storefronts within Seymour Main Street district. Permanent financing or Commitment Letter must be approved and agreed upon by local lending institution or bank. Contract purchases are prohibited. Approve applicants under the DPA must provide signed copy of the Commitment Letter on Banks’ Stationary. The DPA must be applied to balance of the loan and cannot cover closing costs. DPA is forgivable in 5 years if the business is operable, no delinquencies or liens and in good standing with the City of Seymour.
Eligible applicants must be future owners looking to secure the property for commercial, office or mixed-use building. Special approval by the Economic Redevelopment Committee would be required for all purchased that intend to remove current structure and or build a free standing location within Main Street boundaries. Franchise stores, which follow a company design policy, may apply on a case-by-case basis.
All business must conform to current building and zoning codes of the City of Seymour. The business owner must maintain the property in compliance with all federal, state and local laws, ordinances and regulations.
The Seymour Main Street Economic Redevelopment Committee will administer the DPA program. The applicant must submit an application to Seymour Main Street. The applicant must have a preliminary business meeting with representatives from the ERC and financial institution to determine eligibility, advice or technical assistance.
The applicant will then submit the following documents:
- Preliminary plan and preliminary cost estimates (plan can include assistance from ISBDC)
- Business plan
- Details of signage and or awning design; renderings
- Signed and agreed upon Commitment Letter from a Seymour financial institution.
- Personal financial statement
- If existing business that is relocating – 3 years of historical financial statements
- Three years of signed federal tax returns.
- Most current financial statement from the business
- Narrative of community need and impact on other businesses
- $100 application fee.
The ERC committee with review and approve providing a Letter of Eligibility (LOE) if approved.
Upon receipt of the LOE, the owner and or applicant shall proceed as follows:
Submit the LOE to the financial institution and execute the loan origination.
The financial institution and the City of Seymour will be responsible for all inspections, building permits and zoning approvals. The DPA recipients must submit a copy of the settlement statement indicating the down payment assistance and Seymour Main Street will release funds to cover the DPA.
The City of Seymour will record a lien on the property on which the project has occurred as a guarantee for the DPA.