Senator Richard Shelby Downtown Economic Development Revolving Loan Fund

Program Overview

The City of Mobile is now accepting applications for the Senator Richard Shelby Downtown Economic Development Revolving Loan Fund, a $50 million financing program designed to support redevelopment, job creation, and long-term economic growth.

This federally funded revolving loan program was created through Congressionally Directed Spending in the Consolidated Appropriations Act of 2023 and awarded as a Community Project Funding allocation. The program is administered by the City of Mobile in coordination with the U.S. Department of Housing and Urban Development (HUD) and the office of U.S. Sen. Katie Britt.

Unlike a one-time grant program, this revolving loan fund is designed to create lasting impact. As loans are repaid, those funds are reinvested into new projects, allowing the program to support multiple rounds of economic development over time.

Who Should Apply

The program is open to:

• Developers
• Institutions
• Small businesses
• Property owners

Applicants must demonstrate the ability to carry out eligible economic development projects and comply with all applicable federal requirements.

While the program is titled the Downtown Economic Development Revolving Loan Fund, projects are not required to be located in Downtown Mobile. Eligibility is determined by federal guidelines and project criteria, not geography alone. Projects outside of downtown may be considered if they meet program requirements and advance economic development within the city.

Projects may be considered for funding in the following categories:

Hotel Development and Renovation: Projects that expand or enhance lodging capacity, including new hotel construction and renovation of existing properties.

Parking Infrastructure: Improvements such as new parking facilities, upgrades to existing garages or surface lots, ADA compliance improvements, safety enhancements, signage, and related infrastructure.

Higher Education and Workforce Development: Academic facilities, student housing, research centers, and workforce training projects developed in partnership with local higher education institutions.

Commercial and Mixed-Use Development: Commercial projects, mixed-use developments, redevelopment of vacant or underutilized properties, façade improvements, streetscape enhancements, and projects that support small businesses.

All projects must comply with HUD regulations and will be subject to federal approval.

Loan Terms and Structure

• Minimum loan amount: $1 million
• Interest rates: Below market rate; set on a project-specific basis
• Repayment terms: Structured based on project needs and federal guidelines

Loan terms will vary depending on the scope and structure of each project.

Application Review Timeline

With the exception of Higher Education Support Loans, initial review of applications will begin March 2, 2026.

Due to the limited potential pool of applicants, Higher Education Support Loan applications will be reviewed on a rolling basis as they are received.

Application Review Process

1. Initial Review
   Applications will first be reviewed by the City of Mobile’s Neighborhood Development Department to confirm eligibility and compliance with federal requirements.
2. Committee Review
   Final recommendations will be evaluated by a review committee consisting of city staff and appointees from Mayor Spiro Cheriogotis and the Mobile City Council.
3. Federal Approval
   All approved projects remain subject to final HUD review and approval.

Application Criteria

Applicants must demonstrate the following:

• Ability to contract for federal funds, verified through an active SAM.gov registration
• Ability to utilize funds within federally required timeframes
• Capacity and experience to manage the proposed project
• Capacity to manage federal funds in compliance with applicable regulations
• Verifiable documentation demonstrating the ability to repay loan funds
• Proposed collateral to secure the loan
• A Phase I Environmental Review meeting HUD standards under 24 CFR Part 58, if the project includes construction

Failure to meet these criteria may result in disqualification.

Environmental Requirements for Construction Projects

For construction-related proposals, no site work may begin after an application has been submitted unless and until written environmental clearance has been issued by the City. This includes, but is not limited to:

• Property acquisition
• Ground disturbance
• Construction activity

If site work occurs after submission but prior to environmental clearance, the project may be deemed ineligible for federal funding.

How to Apply

The loan application can be viewed and downloaded here.

Application Submission

Applications must be submitted in triplicate to one of the following locations:

By Hand Delivery
Shelby Fund Application
Neighborhood Development Department
City of Mobile
205 Government Street, South Tower, Suite 518
Mobile, AL 36602

By Mail
Shelby Fund Application
Neighborhood Development Department
City of Mobile
P.O. Box 1827
Mobile, AL 36633

It is the applicant’s responsibility to verify delivery.

Questions and Additional Information

For general questions about the application process, please contact:

Neighborhood Development Department
Phone: (251) 208-6294
Email: Courtney.Phelion@CityofMobile.gov

Please note: Questions regarding the likelihood of funding for a specific project proposal will not be answered until the application has been fully reviewed.