Grants & Loans

Administered by the Economic & Community Development Department, the City of Fayetteville offers down payment assistance or gap loan to assist new and existing small businesses. This program is property-oriented, meaning the City will provide a subordinated loan of up to $125,000 for the small business to use towards the purchase of their own commercial property within the Fayetteville city limits. The business must be willing to create and/or retain jobs for low- to moderate-income persons. View the application and apply online for the Business Assistance Loan Program.

The City offers financial assistance to small businesses or commercial property owners that lease to small businesses to improve their business property’s façade. To qualify for the grant, the property must be in the City’s low moderate-income qualified block groups areas (LowMod Area).

The program provides a one-time reimbursement of matching funds up to $25,000 per property. Projects exceeding $25,000 MAY be eligible for matching reimbursement based on the discretion of the ECD Director and Grant Committee. Factors for approval include but are not limited to impact in redevelopment areas, securing job growth, and securing increased taxable value.

The applicant is eligible for a 50 percent reimbursement on expenses equal to or less than $25,000. A qualification requirement includes having a signed agreement before the commencement of work. Apply for the Commercial Exterior Grant Program Online.

Façade Improvement Grant Program

This program is designed to promote the revitalization of facades of active for-profit businesses through the rehabilitation of commercial building exteriors and landscapes in any of the City’s redevelopment plan areas. The City of Fayetteville will provide a matching reimbursement grant up to $5,000 for each façade renovated.

The building must be located within the 3,000 acres of the Fayetteville Renaissance Plan area, including census tract 10 or the Massey Hill, Bonnie Doone, Deep Creek Rd., 71st Township, HOPE VI or Murchison Rd. redevelopment areas. The applicant must be the owner or long-term lessee of the property.

The building space design of the project should be sympathetic to the original integrity of the building, compatible with neighboring structures and of a quality that suggests the improvements will last a reasonable period of time. Since part of downtown is a historic district, the Fayetteville Historic Resources Commission must be included in the design review process for those properties located in the downtown historic district. The City Historic Property Manager, Bruce Daws, may be contacted at 910-433-1457 for guidance on a project.

Funds may be used for, but not limited to, brick cleaning and repairing, painting, window and/or door repair and replacement, landscaping, canopies, awnings, signage, lighting replacement or repair, and other permanent improvements to the exterior of the property.

Requirements that apply to all programs:

Job Creation/Retention: Since the programs are federally funded with Community Development Block Grant (CDBG) funds, a HUD national objective must be met that will provide a benefit to low to moderate-income persons along with other federal requirements. Each business that participates with these programs must meet a job creation or retention requirement benefiting a low to moderate-income person.

Davis-Bacon Act: Construction projects that exceed $2,000 and funded in whole or part with federal funds must also comply with the Davis Bacon Act. This act mandates minimum hourly payments to all employees employed on a construction project.

Environmental Review: Projects are also subject to an environmental review process. This process must be completed before an approved project can begin. An environmental review is the process of reviewing a project and its potential environmental impacts to determine whether it meets federal, state, and local environmental standards. This process can take a week to 60 days, depending on the level of review required.

Committee Review: There is a checklist of required documents and program forms that must accompany the completed application for all programs for review by the loan or grant committee. All requests must be approved and a grant agreement or loan documents must be signed by the applicant before the project can begin.

The City reserves the right to deny a grant or loan request by a small business that is not deemed feasible or does not meet a need or desire of the respective community. Non-profit organizations are not eligible to apply.

More Information

For more information on these programs, please contact Michelle Haire, Economic Development Administrator, at 910-433-1596.

And, of course, if you have other questions about opening up your business downtown include other funding sources, commercial or residential spaces and more, feel free to call the Downtown Development office at 910-433-1599.

Other Programs Available

CEED Capital Loan Program: CEED has a local and SBA monies for small businesses. CCLP can help small businesses from 5K-5M, which has funded many downtown businesses from working capital to property purchase and improvements.