VILLAGE OF SAUGERTIES

COMMUNITY DEVELOPMENT REVOLVING FUND

GUIDELINES

Thank you for your inquiry regarding the Community Development Revolving
Loan Fund.

Enclosed are the forms necessary to process your loan application in a timely
fashion. The following documents are required and must be returned to the Village
Clerk for processing:

1. Application to be completed by the owner of the property (whoever is on

the deed must be on the application).
2. A personal financial statement for individuals or a business financial
statement for local businesses
3. One years tax returns for individuals or two years tax returns for
businesses
4. A copy of the most current paid General, School and Village tax bills
5. A copy of the deed to the property
6. A copy of the plans (rough sketch or detail) of work to be completed

There is a $25.00 non-refundable application fee, payable to the Village of

Saugerties.

All loans are subject to fund availability. Minimum loan amount is $1,500.00.
Maximum loan amount is $75,000.00. Exceptions may be made at the discretion of
the Committee.

Call 246-2321 if you have any questions.

Very truly yours,

THE COMMUNITY DEVELOPMENT REVOLVING LOAN COMMITTEE

VILLAGE OF SAUGERTIES

Revised 5/1/06 page 1

 VILLAGE OF SAUGERTIES
COMMUNITY DEVELOPMENT REVOLVING FUND
GUIDELINES

1. OBJECTIVE: To financially assist businesses zoned for commercial

and industrial use, within the Village of Saugerties, by providing low interest
rate loans to be used for the purpose of renovation or rehabilitation.

2. ELIGIBLE APPLICANTS: Individuals who operate as a sole

proprietorship, partnership, or corporation. All applicants must be the
property owners. Leaseholders will be considered under certain conditions.

3. ELIGIBLE PROJECTS ARE:

a. Commercial improvements
b. Expansion of existing building
c. Façade improvements
d. Mechanicals
e. Parking area improvements
f. Roof repair or replacement
g. Restoration of existing floors, walls ceilings
h. Signage
i. Renovation of abandoned properties for redevelopment for
commercial use
j. Rehabilitation of buildings for commercial use
k. Other projects and activities deemed by the Committee to be
within the general interest and purpose of this program

Revised 5/1/06 page 2

 4. INELIGIBLE PROJECTS ARE:

A. Speculative buildings or renovation on speculative buildings

B. Payoff of any loans to financial institutions
C. Start up business expenses
D. Projects which are located outside the Village of Saugerties

5. APPLICATION KIT CONTAINS

Application, to be completed by the owner of the property –

Whoever is on the deed must be on the application
A. Financial statement forms

The application package may be obtained from the Village Clerk. The application
fee is $25.00, which is non-refundable, and payable to the Clerk at the time of
application. All forms must be completed and returned to the Village Clerk along
with the following:

a. One years tax return for individuals

b. Two years tax returns for businesses
c. A copy of the most current paid tax bills – General, Village and
School
d. Deed to the property
e. Completed financial statements
f. If a corporation or partnership, appropriate papers are
required

6. MINIMUM LOAN AMOUNT: $1,500.00

7. MAXIMUM LOAN AMOUNT: $75,000.00

ALL LOANS ARE SUBJECT TO FUND AVAILABILITY

Revised 5/1/06 page 3

Any loan of $5,000.00 or more may be secured by a mortgage at the discretion of the
Committee. All legal fees, mortgage, filing, recording or preparation fees are to be
paid by the applicant at the time of the closing. No fees can be financed into the
loan proceeds.

UNSECURED LOANS

AMOUNT RATE TERM

$1,500.00 - $2,500.00 4% 1 YEAR
$2,500.00 - $5,000.00 4% 4 YEARS
$5,001.00 - $7,500.00 4% 5 YEARS

SECURED LOANS

AMOUNT RATE TERM

$5,000.00 - $20,000.00 3.5% 5 YEARS
$20,001.00 - $30,000.00 4% 7 YEARS
$30,001.00 - $40,000.00 4.5% 8 YEARS
$40,001.00 - $75,000.00 5% 10 YEARS

8. An advertisement will be placed each April in the Saugerties Post Star,

Kingston Daily Freeman and the New Saugerties Times stating the funds
availability.

9. As a precaution for any contingency expenses, the fund will be closed when the
balance reaches a low of $5,000.00 in the account.

10. OTHER LIMITATIONS:

A. Funds will be issued directly to the applicant by the Village of Saugerties

B. Payments will be collected by Sawyer Savings Bank
C. The Village of Saugerties will make arrangements that will cover, but are not
limited to, default, late payment, collateral, security and other items relative
to borrowing.

Revised 5/1/06 page 4

 COMMUNITY DEVELOPMENT REVOLVING LOAN FUND

D. The Community Revolving Loan Fund Committee will have latitude and
leeway in the determination of project eligibility as well as levels of assistance
to be afforded.

E. These guidelines are to be reviewed annually by the CRF Committee and the
Village Board of Trustees are subject to change at their discretion.

F. A title policy is required for all loans.

G. If the loan is real estate secured, proof of homeowners insurance must be

provided, which shows the Village of Saugerties as lien holder, with proper
coverage for all mortgagees prior to closing.

Revised 5/1/06 page 5