City of Sullivan Incentives
1. Tax Increment Financing (TIF)Sullivan has three TIF districts. A business can apply for TIF by completing an application and returning it to the City Treasurer located at 2 West Harrison Street in Sullivan. The application must be returned prior to any work beginning on the property. The applicant must then negotiate with the city a percentage of the property tax increment to be returned to him/her each year over the life of the TIF. When work on the property is complete, receipts for all eligible expenses must be given to the city. To receive reimbursement, each year, the property owner must send a copy of his paid property tax receipt to the City Treasurer. Reimbursements will continue until the total approved expenses are paid out or until TIF expires.
TIF 1 - Expires 2021
TIF 2 - Expires 2026
TIF 3 - Expires 2024
2. Community Development Assistance Program (CDAP) Revolving Loan FundPer this program, the applicant can apply to borrow $15,000 per new job created at a fixed rate of 4% interest. The total loan amount cannot exceed 50% of the total project cost. Funds for this loan are provided by the State of Illinois and therefore, are subject to the states terms and conditions. Completed applications should be returned to the City Treasurer.
3. Historic Downtown Facade ProgramApproved applicants are awarded a 50% facade grant not to exceed $20,000 for exterior building renovations. Interested applicants should complete an application and return it to the Director of Economic Development located at 112 W. Harrison St. After review by the facade committee, an architect from Blank, Wesselink and Cook, on retainer by the city, will meet with the applicant and ED Director to tour the property and then develop a sketch and scope estimate of the proposed improvements based on the desires of the owner and the committee. Once approved, the owner will proceed with the improvements at his own expense and upon completion submit receipts to the City Treasurer to be reimbursed 50% of the agreed upon project cost.
4. TIF LoanThis program is a collaboration between the City of Sullivan with the three local banks in Sullivan: First Mid-Illinois Bank & Trust, First National Bank and Scott State Bank. Applications must be made at one of the three banks. In this program, the banks provide 75% of the loan amount at a rate of Wall Street Prime + 1% (locked for no more than 3 years) and the city provides 25% of the loan amount out of TIF at 1% interest, thereby lowering the overall interest. Applicants must be located within one of the three TIF districts to qualify.
