An initial $500,000 earlier this year portfolio – the main focus of the orgawent directly into the paycheck protecnization is assisting first-time homebuytion loan program administered by the ers and providing capital for affordable City of Tucson to help small businesses housing. avoid layoffs and stay in business during “The three functions of the IDA are the pandemic. Simultaneously, the IDA pretty cut and dried, but historically, the froze loan payments for businesses with Tucson IDA has focused on affordable existing loans from the corporation, inhousing. Period. End of discussion,” Lufused another $500,000 into the loan cero said. “By affordable housing, we’re program and participated in the Downtalking everything from A to Z in affordtown Tucson Partnership’s Gift Card Inable housing.” centive Program to aid downtown busiThat includes funding for affordable nesses. multi-family housThe timely paning – apartments demic assistance is – for the general workforce and for sejust a small example niors. Funding also of what the IDA can helps the first-time do with the funds it generates through homebuyer, primarits loan programs, at ily with a program no cost to taxpayers. that cuts the time a The IDA receives no buyer must save for public funds, grants the substantial down or donations. Fundpayment needed ing for its loans comes on homes with a from revenue the IDA median price over draws from loans and $300,000 for new services in its portfoand about $225,000 lio. Proceeds go right for resale. back into more loans The down payfor businesses and inment assistance dividuals without acprogram essentially cess to capital. loans the down “Sometimes these payment – up to businesses don’t have 6% of the home that relationship with loan amount – to a commercial bankthe buyer, but the er,” Schwabe said. buyer doesn’t have “They don’t have to make loan paya history with their ments, said Karen business. It might be a Valdez, a BDFC new business.” program manager “Our priority is and IDA adviser. If – Larry Lucero women-owned, mithe buyer keeps and President nority-owned, veterlives in the home for IDA an-owned enterprises three years, the loan Photo by Brent G. Mathis in target areas that is 100% forgiven. A the city has deemed maximum income a priority for them,” said IDA President of $109,000 is required to qualify. Larry Lucero, one of the board’s six The tax credit program gives the volunteers. “Downtown is one, but we buyer up to a $2,000 tax credit per year also have other parts of the community for as long as they live in the home. The where we need to focus our attention. credit is available for households with They really don’t have access to the regincome up to $72,000 and can be up ular banking system, so we fit right into to 40% of the yearly mortgage interest that niche.” paid, capped at $2,000. While the IDA is there for small busicontinued on page 100 >>> nesses – it has 19 loans currently in its
PHOTOS: ROBIN STANCLIFF PHOTOGRAPHY
BizRECOVERY
Billy Russo Managing Director Arizona Theater Company Community loan for annual working capital
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Our priority is women-owned, minority-owned, veteran-owned enterprises in target areas that the city has deemed a priority for them.
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www.BizTucson.com
Carly Quinn Owner Carly Quinn Designs Community loan for purchase and renovation of a commercial building at new business location
Fall 2020
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