BEAD promotes new projects with loan forgiveness

The Bloomington Entertainment and Arts District is now seeking applicants for its 2013 Forgivable Loan Program.

The program aims to incentivize new project developments within the BEAD geographic area.

BEAD encompasses more than 60 city blocks with 10 distinct character areas.

The mission of BEAD is “to bring the business and creative sectors together to advance commerce and culture, build community and spur economic development,” according to the City of Bloomington website.

The BEAD Forgivable Loan Program is targeting the Arts Row area, centered on the intersection of W. Kirkwood and S. Rogers streets.

With a maximum amount of $10,000, the loan is available for new retail, restaurant, art or gallery space within Arts Row.

The program also offers a $5,000 maximum loan for retail, art or gallery space anywhere else within BEAD.

Loan applications will be reviewed by the City of Bloomington’s Department of Economic and Sustainable Development and overseen by Miah Michaelsen, assistant economic development director for the arts.

“We want to provide the tools to empower individuals to create their own business plan and come to us for a loan,” Michaelsen said.

The loan, however, does have several requirements. The project must occupy first-floor space and have an active street presence, though the project may be for-profit or non-profit.

Additionally, all projects must have a business plan and some funding already secured.

The loans require two-to-one leverage, so for each dollar of funding provided by BEAD, the project must provide two dollars of funding itself.

The condition for loan forgiveness is that the project remains operable for five years or more.

“The five-year timeline insures a serious commitment from the project and long-term investment in the area,” Michaelsen said.

Formula businesses, such as restaurant chains, are ineligible for the loan.

This is to encourage local businesses that might not have all of the resources chains do.

“In Bloomington there is a strong movement towards locally sourced food, local art, local businesses,” Michaelsen said. “Local aesthetic is important to downtown identity.”

Loan applications will be accepted on a rolling basis until all funds have been committed or until Nov. 15.

There have already been several inquiries, and Michaelsen expects that the $20,000 of available funds will be exhausted.