Water Street homeowners looking to have work done on their facades have long been able to turn to the Village of Prairie du Sac’s loan program rather than a bank, often for lower interest rates.
The Village Board approved a resolution at their May 28 meeting changing the set 4% interest rate for the program to the prime interest rate set by the Federal Reserve. The current prime interest rate is 5.25%.
The facade loan program is designed to help finance homeowners who want to update their facades and incentivize doing so.
“It’s a way to entice people to start looking at a project,” Village Board Member Andrew Strathman said. “Otherwise if they went to a bank, they might get a much higher interest rate.”
The change from a set 4% interest rate to prime interest rate was spurred by a desire to “keep the project in the black,” Strathman said. “We don’t make money off of this, but we still need to fill the coffers.”
The Village Board unanimously approved the change.
“It makes sense to me,” said Village Board President Cheryl Sherman.
Village Board Member Ray Bolton was not present at the meeting because he was out of the area.