$50M funding program for downtown Mobile development now accepting applications

The City of Mobile is now accepting applications for the Senator Richard Shelby Downtown Economic Development Revolving Loan Fund, a $50 million financing program designed to support redevelopment, job creation and long-term economic growth.

Unlike a one-time grant program, the city says this revolving loan fund is designed to create lasting impact. As loans are repaid, those funds are reinvested into new projects, allowing the program to support multiple rounds of economic development over time.

“It will allow us to support projects that strengthen our economy today while also creating a sustainable source of funding for future projects… Throughout his time in Washington, Sen. Shelby did much to move Mobile forward, and this program will ensure his impact on our community continues for many years to come.”

Spiro Cheriogotis, Mobile mayor

This federally funded loan program was created through Congressionally Directed Spending in the Consolidated Appropriations Act of 2023 and awarded as a Community Project Funding allocation. The program is administered by the City of Mobile in coordination with the U.S. Department of Housing and Urban Development (HUD) and the office of U.S. Sen. Katie Britt.

Senator Richard Shelby Downtown Economic Development Revolving Loan Fund

The city said the program is open to developers, institutions, small businesses and other property owners that fall into four categories. Eligibility is determined by federal guidelines and project criteria and are not required to be located downtown.

Projects may be considered for funding in the following categories:

• Hotel Development and Renovation: Projects that expand or enhance lodging capacity, including new hotel construction and renovation of existing properties.
• Parking Infrastructure: Improvements such as new parking facilities, upgrades to existing garages or surface lots, ADA compliance improvements, safety enhancements, signage, and related infrastructure.
• Higher Education and Workforce Development: Academic facilities, student housing, research centers, and workforce training projects developed in partnership with local higher education institutions.
• Commercial and Mixed-Use Development: Commercial projects, mixed-use developments, redevelopment of vacant or underutilized properties, façade improvements, streetscape enhancements, and projects that support small businesses.

The loan terms will vary depending on the scope and structure of each project but the minimum loan amount is $1 million with interest rates expected to be set below market rate. Repayment plans will be based on each project’s needs and federal guidelines.

Applicants must demonstrate the following:

• Ability to contract for federal funds, verified through an active SAM.gov registration
• Ability to utilize funds within federally required timeframes
• Capacity and experience to manage the proposed project
• Capacity to manage federal funds in compliance with applicable regulations
• Verifiable documentation demonstrating the ability to repay loan funds
• Proposed collateral to secure the loan
• A Phase I Environmental Review meeting HUD standards under 24 CFR Part 58, if the project includes construction

All projects must comply with HUD regulations and will be subject to federal approval.

With the exception of Higher Education Support Loans, initial review of applications will begin March 2. Due to the limited potential pool of applicants, Higher Education Support Loan applications will be reviewed on a rolling basis as they are received.

How to apply

The loan application can be viewed and downloaded here. Applications must be submitted to one of the following locations:

• By Hand Delivery
  • Shelby Fund Application
  • Neighborhood Development Department
  • City of Mobile
  • 205 Government Street, South Tower, Suite 518
  • Mobile, AL 36602
• By Mail
  • Shelby Fund Application
  • Neighborhood Development Department
  • City of Mobile
  • P.O. Box 1827
  • Mobile, AL 36633

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