Commercial Development Loan Program
Program Overview
The Salt Lake City Community Reinvestment Agency’s Commercial Development Loan Program helps finance commercial and mixed-use development projects in eligible CRA project areas. Eligible project areas include the Central Business District, Depot District, Granary District, North Temple, State Street, and 9-Line.
The program is designed to support projects that create new commercial space, expand neighborhood amenities and services, preserve existing buildings, encourage sustainable development, and help local businesses and community-serving organizations put down roots.
What the Program Supports
The CDLP provides gap financing for projects that advance CRA goals and project area objectives. Eligible projects may include:
- New commercial development
- Mixed-use development with active ground-floor commercial space
- Building preservation and rehabilitation
- Significant site work and other long-term property improvements
For mixed-use projects, the ground floor must include activated commercial space open to the public that encourages pedestrian activity. In general, at least 50% of the length of all street-facing ground-floor facades must contain non-residential uses, and those spaces must be at least 25 feet deep, unless an exception is approved for preservation or rehabilitation of an existing building.
Eligible Applicants
The program is open to:
- Property owners
- Long-term ground lessees
- Current or prospective commercial tenants leasing all or part of a property
Applicants must demonstrate the ability to complete the project successfully, show a record of meeting past financial obligations, and be in good standing on existing contracts with the CRA, Salt Lake City Corporation, Salt Lake County, and the State of Utah. Property owners must show site control, and tenants must provide a lease that remains in place for at least the loan term, along with owner approval of the proposed improvements.
Eligible Uses
CDLP funding is primarily available for construction, or hard costs. Depending on the project, the CRA may also consider funding for property acquisition, infrastructure improvements, environmental remediation, demolition, project-related soft costs, or tenant-specific improvements as part of a larger redevelopment effort. Existing debt refinancing is not eligible.
Minimum Requirements
To be considered, projects must meet several threshold requirements:
- Be located in an eligible CRA project area. Eligible project areas include the Central Business District, Depot District, Granary District, North Temple, State Street, and 9-Line.
- Support at least one project area objective
- Be ready to break ground within 12 months of CRA Board approval
- Comply with applicable City and CRA policies, ordinances, and codes
Projects must also meet sustainability requirements tied to the type of project and funding amount, and projects receiving funding must satisfy at least two required community benefits. Mixed-use developments with housing may use one CRA housing funding priority in place of one community benefit.
How projects can stand out
The program is built to reward projects that do more for the community. At a minimum, funded projects must meet two required community benefits. These benefits include outcomes such as:
- Leveraging private investment
- Permanent job creation
- Commercial vitality for local, independent, minority-owned, veteran-owned, nonprofit, childcare, after-school, or otherwise underrepresented neighborhood-serving uses
- Commercial ownership opportunities for occupants
For mixed-use developments with housing, eligible projects may also align with CRA housing priorities such as deeply affordable housing, family housing with child-friendly amenities, wealth-building opportunities, or expanding affordable housing availability
Interest rate reductions may be available
Projects that exceed the minimum required community benefits may qualify for lower interest rates, down to 3%.
Loan Terms at a Glance
CDLP loans are intended to fill a demonstrated financing gap. Applicants must demonstrate that CRA funds are necessary for the project to move forward and that private financing alone is insufficient. A loan commitment or term sheet from a private lender should be secured at the best available rate and terms before CRA funds are considered.
Quick facts block:
- Maximum loan amount: Up to $2,000,000
- Loan structure: Gap financing based on project need
- Standard term: Up to 5 years
- Possible extension: Up to 10 years with prior CRA Board authorization
- Amortization: Up to 20 years, with balloon payment at maturity
Loan sizing is limited by financial underwriting standards, including debt service coverage ratio and loan-to-value requirements. When the CRA contribution exceeds 60% of total development costs, stricter underwriting applies.
Sustainability Requirements and Incentives
The CRA Sustainable Development Policy is built into this program. New construction projects receiving CRA funds, and preservation or rehabilitation projects receiving $900,000 or more, must operate as 100% electric buildings, be designed to earn an ENERGY STAR score of 90 or higher, and participate in Salt Lake City’s Energy Benchmarking Program. Preservation or rehabilitation projects receiving between $200,000 and $899,999 must also meet the ENERGY STAR and benchmarking requirements.
Additional interest rate reductions are available for projects that achieve renewable energy standards:
- Off-site net zero: 1% interest rate reduction
- On-site net zero: 2% interest rate reduction
Building Preservation Incentive
Projects that preserve or rehabilitate a chronically vacant, underutilized, or economically challenged building may be eligible for principal forgiveness equal to 20% of the loan amount or $200,000, whichever is greater, at the end of the loan term. If program conditions are met throughout the loan term, interest does not accrue on the forgiven portion and loan payments do not include that amount.
To qualify, the building generally must:
- Be at least 50 years old
- Be chronically vacant, underutilized, or economically challenged
- Cover at least 25% of the total development area, with some flexibility in limited cases
- Retain most of its exterior walls and character-defining features
- Be subject to a recorded restrictive covenant preserving important exterior features for 30 years
Application Process
The program uses a two-part application process.
Step 1: Part A — Eligibility screening
Applicants submit a basic project overview, timeline, total project cost, loan request amount, and identification of required community benefits. CRA staff reviews the submission for threshold eligibility.
Step 2: Part B — Full application
If the project is eligible, applicants are invited to submit a full application with project documents, financial information, supporting materials, and collateral documentation.
FAQ
Up to $2,000,000, subject to underwriting and demonstrated financing gap.
Yes. Current or prospective commercial tenants may apply if they have a qualifying lease and owner approval for the project.
In some cases, yes. The program may be combined with other CRA funding sources for the same project, but not with a CRA tax increment reimbursement for that same project.
Yes, depending on project type and award amount. Additional sustainability features may also reduce the loan’s interest rate.
Projects selected for funding will receive a Letter of Commitment outlining loan terms and conditions required before closing. Prior to closing, borrowers may be required to submit final plans, primary lender documents, insurance, environmental reports, contractor agreements, and other materials.
After closing, borrowers must provide final compliance documentation, including a certificate of occupancy and any required reporting tied to interest rate reductions or other program commitments.