After steady commercial growth in the Grape Road/Main Street corridor and along the riverfront in recent years, Mishawaka officials are launching a new program. This one, they hope, will help more mom-and-pop businesses set up shop in historic buildings downtown.
The Mishawaka Common Council Monday approved a new revolving loan/grant program for businesses downtown and at the corner of 7th and West streets, near West End Bakery. Businesses can be partially reimbursed for up to $50,000 for making major improvements, mostly to the exterior facade.
Applicants won’t have to repay the money if they finish improvements as planned. The program will start with $500,000 in Economic Development Income Tax money that was repaid to the city from no-interest loans it gave businesses during the Covid pandemic. If the program goes well, the city could look to find another funding source when that money is gone.
Mayor Dave Wood says sometimes people want to start businesses in historic downtown buildings but they quit after encountering unexpected costs to bring them up to modern code.
"Now all of the sudden we need to do things like fire escape restoration or replacement, or fire suppression within the building, or grease traps, and these things can cost tens of thousands of dollars," Wood told the council. "So that right there is a barrier to entry."
The city’s redevelopment commission will award the help only to commercially zoned buildings with first-floor retail and housing on upper floors. There are many more restrictions and exclusions.
