The City of Eau Claire Commercial Building Façade Loan Program is a public financial initiative designed to enhance the aesthetic appeal and overall vitality of downtown and neighboring business districts. By offering low-interest loans, the program allows property owners and businesses to more affordably improve their building façades, including repairs, restorations, and aesthetic upgrades. Meanwhile, the City is able to leverage public funds in order to catalyze private investment, resulting in a more inviting and visually appealing urban landscape, stimulated economic growth, increased tourism, and a vibrant community atmosphere.
Affordable Financial Assistance
The program provides low-interest loans at a 0% fixed annual rate, making it more feasible to undertake façade improvements.
No Prepayment Penalty
The loan may be repaid ahead of schedule without incurring additional fees, offering flexibility in financial planning.
Enhanced Property Aesthetics
Loan funds are eligible for various exterior improvements from lighting to landscaping, contributing to a more attractive property.
Flexible Repayment Terms
The loan can be repaid over up to 7-year terms, allowing borrowers to manage repayments comfortably.
Increased Property Value
The loan can be used to upgrade a building’s exterior, boosting both its market value and appeal to future buyers.
Community Revitalization
Improved façades boost the overall aesthetic appeal of the street, leading to a more vibrant and attractive community.
Loan Amounts
The minimum loan will be $5,000 and the maximum will be $30,000.
Interest Rate
The interest rate shall be a 0% fixed annual rate. The Finance Director will review the program’s interest rate annually as compared to market conditions and recommend changes, if any, to the Loan Administration Board, who shall have the authority to adjust the rate accordingly.
Terms
The repayment term shall be no longer than 7 years. The loan may be amortized up to 15 years. There is no prepayment penalty. If it is determined by the Loan Administration Board that deferral of the principal payment for a period not to exceed one (1) year would likely lead to the success of the project and that upon review of updated financial information filed by the borrower that loan collateral remains a viable and likely source of recovery in case of default, deferral may be allowed as approved by the Board.
Collateral
All loans shall be secured by a mortgage on the property rehabilitated. Unlimited business and personal guarantees will also be required of all owners with a 20% or greater ownership interest in the business.
Maintenance
All borrowers will be required to continue to maintain the properties in the condition and for a time as set forth in the loan documents but will normally not be less than the term of the financing.
The City’s Economic Development Division staff will review the applicant’s materials to ensure accuracy and completeness. They will then send the application to the Design Review Committee so they may review the façade and building plans with the applicant in accordance with applicable design guidelines. Upon their recommendation, Economic Development staff will bring the application forward to the City’s Loan Administration Board, who will review the entirety of the application and approve or deny the loan request.
Eligible Borrowers
All property owners, businesses, and tenants located in the City of Eau Claire in areas zoned commercial or the central business district (Downtown) as defined by the district map adopted by the Eau Claire City Council. Startup businesses are eligible but must provide an acceptable business plan and show sufficient management background and an equity position in the business. Applicants must demonstrate an ability to cash flow the projected debt service and to operate a business successfully. Property taxes on the property must be current. Preference will be given to projects improving buildings constructed before 1990.
Eligible Uses of Funds
Façade renovation, signs, exterior doors, windows, awnings, exterior graphics, exterior lighting, and other façade or landscape improvements. Building code violations such as roofing, structural repair and necessary mechanical system upgrades are eligible but only as part of an approved façade improvement. Façade funds can only be used for rehabilitation expenses incurred after the application is approved for funding. Applicants can also apply for other public loan funds or grants for the same project, but the façade design must be approved first.
Ineligible Uses of Funds
Refinancing, building purchases, inventory, furniture, equipment, or working capital. Projects cannot be primarily residential in nature. Projects must have reasonable assurance of repayment.
Design Requirements
Applications for projects in the central business district must include acceptable façade design plans that comply with the most recently adopted design standards approved by the City’s Design Review Committee. All applications must include acceptable façade design plans that contribute to a cohesive and appealing look and feel of the area surrounding their business. All designs must meet local codes, laws, and standards.
Follow these steps to apply for the financing options offered by the City of Eau Claire.
Determine Eligibility
To begin the application process, reach out to our division via email or phone call. Our team will help you review the guidelines for each loan program to find the right financing option for your business and will make recommendations depending on factors such as your income, collateral, business type, and intended use of the loan funds.
Complete an Application
When a loan program has been selected, our team will provide the application and next steps. Carefully fill out all sections of the form, gather all necessary documentation listed on the checklist included in the application, and submit all of your materials via email or in person. We will then review all of the materials you provided to ensure they’re complete.
Present to the Loan Board
Once your application is ready, we will invite you to present before the Loan Board. At this meeting, board members will review your application and ask questions so they understand the intended use of the loan funds. They will then deliberate and deliver a decision by the end of the meeting or request more time.
Sign Loan Documents
If your loan is approved, the Finance Department will extend a final offer outlining the interest rate, terms, and conditions of the agreement. Read these documents carefully and ask any questions you have before signing. Then sign and return them to the Finance Department.
Receive Funds
Once the loan documents have been signed, you will receive the loan funds as outlined in the agreement, usually within 1-2 months. Be sure to only use the funds for their intended purpose and adhere to the repayment schedule so you can maintain a positive credit history and avoid any potential penalties or fees.
© 2025 City of Eau Claire Economic Development Division