Lending

CCLF finances projects across metropolitan Chicago that revitalize neighborhoods, promise high positive social impact, incorporate sustainable design practices and have the potential to leverage significant additional investments from other sources.

CCLF often works with challenging but promising projects that other financial institutions will not or cannot finance.

CCLF offers the following types of loans:

*NEW* Activate Retail

 

Activate Retail is CCLF’s new commercial retail initiative. It will help support new retail corridors, community businesses, local jobs, healthier food, community spaces and stronger local economies.

Through this initiative, CCLF will offer predevelopment, construction, permanent, subordinate, and equity financings, along with technical assistance and policy advocacy.

For inquiries about Activate Retail, email Maurice Williams, Vice President of Economic Development

Predevelopment Loans

Predevelopment loans are short-term, usually the first dollars into a project, and often the most difficult type of financing to access because they cover expenses accrued even before construction begins. Such soft costs include: land or building acquisition, site stabilization, interim maintenance, environmental surveys, appraisals, taxes, insurance coverage, as well as legal, architectural and consultant fees.

Criteria

  • MAXIMUM LOAN-TO-VALUE: 100%
  • TERM OF LOAN: 2-year maximum
  • INTEREST RATE: 7-9%
  • REPAYMENT: Monthly interest-only payments
  • POINTS: Up to 2 points
  • APPLICATION FEES: $250 ($150 for nonprofits)
  • FEES: Normal closing costs apply
  • ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
  • SECURITY: First mortgage (valid first lien on property) preferred and / or combination of first or second position lien on property along with guarantees, cash collateral, Letters of Credit, first or second position lien on other property and so forth
  • OTHER: Applicant must accept CCLF technical assistance where applicable

Eligibility

  • PROPERTY RESTRICTIONS: Project must be located in the six-county (Cook, DuPage, Kane, Lake, McHenry, Will) Chicago metropolitan area
  • BORROWER RESTRICTIONS: Must be a nonprofit, for-profit/nonprofit joint venture, for-profit subsidiary of a nonprofit, housing or business cooperative, or a small to mid-size, mission-driven for-profit entity
  • Must be engaged in community-based housing, economic development or social service facility project that will serve or benefit low- to moderate-income people and / or communities

Construction and Rehabilitation Loans

Short-term loans used to build or rehabilitate a structure.

Criteria

  • MAXIMUM LOAN-TO-VALUE: 100%
  • TERM OF LOAN: 1 to 1.5 -year maximum
  • INTEREST RATE: 8-9%
  • REPAYMENT: Monthly principal and interest with balloon at maturity
  • POINTS: Up to 2 points
  • APPLICATION FEES: $250 ($150 for nonprofits)
  • FEES: Normal closings costs apply
  • ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
  • SECURITY: First mortgage (valid first lien on property) preferred and/or combination of first or second position lien on property along with guarantees, cash collateral, Letters of Credit, first or second position lien on other property and so forth
  • OTHER: Applicant must accept CCLF technical assistance where applicable

Eligibility

  • PROPERTY RESTRICTIONS: Project must be located in the six-county (Cook, DuPage, Kane, Lake, McHenry, Will) Chicago metropolitan area
  • BORROWER RESTRICTIONS: Must be a nonprofit, for-profit/nonprofit joint venture, for-profit subsidiary of a nonprofit, housing or business cooperative, or a small to mid-size, mission-driven for-profit entity
  • Must be engaged in community-based housing, economic development or social service facility project that will serve or benefit low- to moderate-income people and/or communities.

Housing Cooperative Loans

Custom mortgage products for limited-equity or low-income housing cooperatives.

Criteria

  • MAXIMUM LOAN-TO-VALUE: 80-100%
  • TERM OF LOAN: Up to 15 years
  • AMORITIZATION: 30 year maximum
  • INTEREST RATE: 6-9%
  • REPAYMENT: Monthly principal and interest with balloon at maturity or fully amortizing, where possible
  • POINTS: Up to 2 points
  • APPLICATION FEE: $250 ($150 for nonprofits)
  • FEES: Normal closing costs apply
  • ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
  • SECURITY: First mortgage (valid first lien on property) preferred and / or combination of first or second position lien on property along with guarantees, cash collateral, Letters of Credit, first or second position lien on other property and so forth
  • OTHER: Technical assistance from cooperative housing trade association and / or CCLF is generally required

Eligibility

  • PROPERTY RESTRICTIONS: Project must be located in the six-county (Cook, DuPage, Kane, Lake, McHenry, Will) Chicago metropolitan area
  • BORROWER RESTRICTIONS: Must be a housing cooperative organization, nonprofit or limited liability corporation. Income of end-users must not exceed 120% of Area Median Income (AMI).

Minipermanent Mortgage Loans

Mortgage products that finance the acquisition of properties for nonprofit organizations engaged in community-based social service, housing, or economic development projects.

Criteria

  • MAXIMUM LOAN-TO-VALUE: 100%
  • TERM OF LOAN: 15-year maximum
  • AMORITIZATION: 30-year maximum
  • INTEREST RATE: 6-9%
  • REPAYMENT: Monthly principal and interest with balloon at maturity
  • POINTS: Up to 2 points
  • APPLICATION FEES: $250 ($150 for nonprofits)
  • FEES: Normal closings costs apply
  • ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
  • SECURITY: First mortgage (valid first lien on property) preferred and / or combination of first or second position lien on property along with guarantees, cash collateral, Letters of Credit, first or second position lien on other property and so forth
  • OTHER: Applicant must accept CCLF technical assistance where applicable

Eligibility

  • PROPERTY RESTRICTIONS: Project must be located in the six-county (Cook, DuPage, Kane, Lake, McHenry, Will) Chicago metropolitan area
  • BORROWER RESTRICTIONS: Must be a nonprofit, for-profit/nonprofit joint venture, for-profit subsidiary of a nonprofit, housing or business cooperative, or a small to mid-size, mission-driven for-profit entity
  • Must be engaged in community-based housing, economic development or social service facility project that will serve or benefit low- to moderate-income people and / or communities.

Equipment and Working Capital Loans

Medium-term loans to allow nonprofits, social enterprises, small businesses and worker-owned cooperatives to buy equipment needed to establish or expand their social enterprise or mission-driven business.

Criteria

  • MAXIMUM LOAN-TO-VALUE: 100%
  • TERM OF LOAN: 7 year maximum
  • INTEREST RATE: 7-9%
  • REPAYMENT: Monthly principal and interest
  • POINTS: Up to 2 points
  • APPLICATION FEE: $250 ($150 for nonprofits)
  • FEES: Normal closing costs apply
  • ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
  • SECURITY: First priority lien on equipment (valid first lien on equipment) preferred and / or combination of first or second position lien on property along with guarantees, cash collateral, Letters of Credit, first or second position lien on other property and equipment and so forth
  • OTHER: Applicant must accept CCLF technical assistance where applicable

Eligibility

  • PROPERTY RESTRICTIONS: Project must be located in the six-county (Cook, DuPage, Kane, Lake, McHenry, Will) Chicago metropolitan area
  • BORROWER RESTRICTIONS: Must be a nonprofit, for-profit/nonprofit joint venture, or a for-profit subsidiary of a nonprofit.
  • Must be used for a facility or project that will serve or benefit low- to moderate-income people and / or communities.

 

If you would like to find out if your project could be financed by CCLF, please review our loan review process and then fill out a loan inquiry.