What is a CIP?

A Community Improvement Plan (CIP) is a tool that allows municipalities to provide tax assistance, grants or loans to assist in the rehabilitation of lands and/or buildings within the defined Community Improvement Project Area and subject to the requirements of the respective Community Improvement Plan. Normally, financial incentives are paid out upon successful completion of the project.

Program Details & Value

The program will provide financing to cover eligible costs required for a broad range of physical, structural, and aesthetic improvements to existing commercial, industrial, mixed-use, and office buildings/properties, as determined by Community Futures Middlesex.

If approved to receive financial incentives from a member municipality, the applicant will automatically be approved to receive funding to put towards matching and/or upfront costs related to the approved grant, up to $20,000 per project and/or property.

Terms of the Loan:

• Proof of Municipal CIP approval
• Business Loans up to $20,000
• Prime +2% Interest Rate, 1 to 5-year Term
• Simple Application Process
• Flexible Repayment Terms
• Personal Guarantee Required

Eligibility:

• Applicants must meet the stated municipal eligibility criteria for the respective CIP program and provide evidence they have been approved for participation in it.
• Funds may only be used for the specific Municipal CIP program.
• The applicant must agree to a credit check.
• The applicant must not currently be involved in a bankruptcy proceeding.
• If a bankruptcy has occurred, the applicant must be at least 24 months past the discharge of it.
• The applicant cannot have experienced more than one (1) bankruptcy.
• While a strong credit rating is preferred, it is not mandatory for a microloan advance.

Required Security

• Only a Personal Guarantee will be required provided the applicant’s credit report shows nothing currently delinquent or in collections within the previous 24 months (with particular emphasis on the recent 12 months) and applicant’s experience and business history support a reasonable expectation of repayment of the loan.
• If the credit report indicates concerning delinquencies, Community Futures Middlesex, at its sole discretion, may require a General Security Agreement (GSA) (registered with the PPSA) or may decline the loan request. If a GSA is required, the legal fees to support the PPSA registration of the security would be at the client’s expense.

Applications

The following is required:

• A Microloan Application
• A Personal Financial Declaration
• A Microloan Application Fee of $150 (returned if the loan is declined)

• A Business Plan or, at minimum, a Project Description
  (Support offered by Community Futures Middlesex) 
  • Project Description should include quotes or invoices for the proposed expenses
• Latest Business Financials, which may include:
  • Statement of Business Activities (as reported on T1)
  • Accountant-prepared business financial statements or Corporate Tax Return (T2)

How Can Community Futures Middlesex Help?

It is often the case that a property owner wishes to improve their building but simply does not have the cash flow to cover the required upfront or matching funds of a Community Improvement Plan. This results in lack of uptake of the program and a property which remains in a poor state. To remedy this, Community Futures Middlesex has committed to providing low interest (Prime +2%) funding and support.

How To Apply

Start your application by completing the loan application form. If you’d like more information about the program please email our office info@cfmiddlesex.ca or call us 519 641-6100.

Municipality of Middlesex Centre

CIP Program link: www.middlesexcentre.ca/CIP