Corridor Revitalization Loan Program (CoRL)

CORRIDOR REVITALIZATION LOAN (CoRL) PROGRAM

The Corridor Revitalization Loan Program (CoRL) assists business property owners in the older commercial areas of Mason City to rehabilitate buildings, update facades, and bring new vitality to these corridors. Eligible properties are zoned Z4, Multi-use District, and are mostly located along North Federal and the older commercial area of South Federal Avenue. Also eligible are Z4-zoned properties along the one-way pair of IA Highway 122, mostly between South Monroe and South Pennsylvania avenues (see map below). If you are unsure if your property is eligible, contact the Development Services Department.

PROPERTY ELIGIBILITY: Owners of commercial properties zoned Z4 along the designated commercial corridors (see map). Tax-exempt and single family dwellings are not eligible. Note: Meeting eligibility requirements is not a guarantee of approval.

LOAN AMOUNT: Up to $30,000, matched dollar-for-dollar by the applicant. The match may consist of cash supplied by the applicant, or from a bank, grants or other financing sources. Proof of match must be provided.

LOAN FORGIVENESS: The loan is forgiven at a rate of 1/84^th of the total principal per month and is totally forgiven after 84 months (seven years). The owner must maintain the improvements during the entire loan forgiveness period. Ownership may be transferred during the loan forgiveness period, provided that the new owner signs a Assignment Agreement  and assumes a second mortgage for the loan balance.

DEFAULT: Failure to maintain the improvements during the loan forgiveness period results in repayment of the entire un-forgiven loan balance, plus interest accrued at a rate of 4 percent.

USE OF FUNDS: Projects must meet one or both of the program goals: 1) raise assessed property value, or 2) improve the aesthetic impact on the corridor. Historic elements shall be maintained.

OTHER FINANCING: Applicants are required to seek other sources of matching funds. The City will accept a subordinate position if the applicant is also entering into a mortgage loan from a financial institution.

PROCESS: Applications will be reviewed by City staff for completeness; incomplete applications will be rejected. All applications will be scored by the Grant and Forgivable Loan Review Committee. Applications must meet a minimum score to be eligible. After scoring, eligible applications are sent to the City Council for final approval. If approved, the applicant must enter into a Forgivable Loan Agreement with the City. Funds are disbursed when improvements are complete, paid for, and accepted by the City. The applicant must accept a mortgage for the value of the loan and sign a promissory note. The 7-year forgiveness period begins on the date the loan is disbursed. Request a copy of the Application Instructions and Program Requirements for detailed information.

CONSTRUCTION REQUIREMENTS: The City retains the right to inspect the improvements upon completion to ensure that they are completed in accordance with the CoRL Loan Agreement. In addition, the City may inspect any time during the loan forgiveness period, after providing at least 48 hours’ notice, to insure that the improvements are being maintained.

APPLICATION: Application materials are available from the Development Services Department or at this link:   

CoRL Application

CoRL Brochure




Application Instructions & Program Requirements

See Property Eligibility criteria, above. To positively determine if a property is eligible, contact the Development Services Department.

Development Services Dept.
City of Mason City 
(641) 421-3626

The Pappajohn Entrepreneurial Center - Small Business Development Center
North Iowa Area Community College
(641) 422-4111
www.niacc.edu/pappajohn

Iowa Economic Development Authority
(515) 725-3000
www.iowaeconomicdevelopment.com