Food carts and crowds on State Street Mall.
Economic Development

Commercial Ownership Assistance Program

The Commercial Ownership Assistance Program (COA) helps business owners expand their enterprises by transitioning from renting space to owning commercial property for their establishments. 

The COA program provides forgivable loans to support existing businesses in taking the next step toward owning or developing property for their enterprise.

Application Information 

You are eligible to apply if:

  • You are a City of Madison resident and own a business located within the City of Madison
  • You do not own any other property other than your primary residence
  • The commercial building you are planning to purchase is in the City of Madison 
  • You have not previously received funds through this program 
  • You have an established for-profit business with two or more years of operating experience
  • You can demonstrate the viability of your business concepts through a business plan, financial statements, and/or other documentation
  • You are planning to make a substantial expansion of your commercial property

Loan Amount and Terms

  • Up to $250,000 or 25% of the building price or project cost, whichever is less
  • All loan repayments are deferred until sale, cash-out refinance for other than property improvements, the property is transferred or ceases to be a location for a business owned by the borrower
    • If any of the above happen within the first 7 years repayment of the full amount is required
    • If any of the above happen between years 8-14 repayment of one-half the borrowed amount will be required
    • If the applicant still owns the property after year 15 the original loan amount will be forgiven
  • There will be no interest rate

Eligible Costs

Funds can be used for the following:

  • Purchase your existing commercial building where you currently operated for at least two years
  • Buy a new commercial building for your business
  • Expansion or redevelopment of an existing building or property that the business owns
  • Purchasing a condominium unit for their business

Tax Increment Districts

To be eligible, your business must be in or within a half mile of one of these Tax Increment Districts (TID):

  • TID 44: Royster Clark Area
  • TID 46: Research Park Area
  • TID 50: State Street Area
  • TID 51: Park Street Area
  • TID 52: East Washington Avenue/Stoughton Road Area
  • TID 53: Wilson Street Area
  • TID 54: Pennsylvania Avenue Area

To see if your location falls within the boundaries of one of these areas please e-mail Michael Miller mmiller2@cityofmadison.com.

How to Apply

Contact Program Manager

Reach out to the program manager to discuss your project and for a copy of the application.

Program Manager contact information:

  • Michael Miller
    Business Development Specialist
    Office of Business Resources
  • Email: mmiller2@cityofmadison.com
  • Phone: 608-267-8721
  • Fax: 608-267-6126

Applications are received on a quarterly schedule (January, April, July, October).

Applications are due no later than noon on the 3rd Friday of the months mentioned above.

  1. Contact Program Manager

    Contact the Program Manager for information regarding eligibility, the application process, and to receive the application form.

  2. Application Review

    An application review team comprised of Department of Planning, Community and Economic Development staff, Department of Civil Rights staff and other departments as needed will evaluate your application and determine if it meets the eligibility requirements of the program. 

  3. Submit Documents

    If the team determines your business meets all eligibility requirements, you will be required to submit more detailed information for business underwriting and project feasibility.

  4. Director Review

    After business underwriting and project feasibility review, the application will require the Department of Planning, Community and Economic Development Director's (DPCED) review.

  5. Committee Review

    Your application will go before the Economic Development Committee, the Finance Committee, and the Common Council. 

    You are expected to attend these meetings to speak about your business and application, and to answer questions regarding the underwriting and feasibility of the project.

  6. Sign Loan Agreement

    After your application has been approved and adopted by the Common Council, a loan agreement will be drafted for you to review and sign.

  7. Payment Process

    The City will wire funds to the title company at the time of closing when funds are used to purchase a commercial building.

    The City may be able to send funds directly to the business owner if the funds are being used for an expansion or development. 

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