Downtown Revolving Loan Fund Program

Program Overview

The Downtown Revolving Loan Fund (DRLF) is designed to assist in reducing the immediate cost of development in Downtown Modesto, and provide a low interest loan of construction costs.


The DRLF Program offers construction loans at a low interest rate, for twenty percent (20%) of the total project cost up to $90,000, whichever is less. A loan request above $90,000 and capped at $250,000 may be allowed by the Director of Community and Economic Development, in which a public hearing pursuant to Government Code Section 53083 will be held before a loan above $90,000 is approved .

Program Requirements

  • Located within the identified Downtown Modesto area
  • Loan-to-Value ratio must not exceed one hundred percent (100%) of the property value
  • Loan must be twenty percent (20%) of the total project cost or $90,000, whichever is less
  • Two-year timeline from application approval to Certificate of Occupancy
  • Applicant must disclose any personal liens on the property

About the Construction Loan

  • Loan period is no more than five (5) annual payments following one (1) year after the Certificate of Occupancy 
  • Three percent (3%) interest on loan
  • A lien will be placed on property and remain until loan amount with interest is paid in full
  • Funding will be provided upfront
  • Project must receive a Certificate of Occupancy within two (2) years

Application Process

Prospective applicants should first contact the City of Modesto Economic Development Manager. 

  1. Required Documentation
  2. Application Fees
  3. Application Review
  4. Repayment Process

Required Documentation

The following items will be required and need to be submitted prior to loan approval and building permit issuance:

  • Downtown Revolving Loan Fund Program Application
  • Project description
  • Proof of ownership
  • Demonstrated Lien-to-Value must not exceed 100% of the property value
  • Two-year timeline for project completion
  • Construction Loan Agreement
  • Promissory Note
  • Deed of Trust
  • Located within the Downtown Modesto boundary area
  • Download an application for this program (PDF), submit by emailing Economic Development.