Equipment and Working Capital Loan

Equipment and working capital loans, with 3 to 5 year terms, allow nonprofits and worker-owned cooperative to buy equipment needed to establish or expand their commercial enterprise.

Criteria

• MAXIMUM AMOUNT: $350,000; working capital can represent only 10% of loan amount
• MAXIMUM LOAN-TO-VALUE: 100%
• TERM OF LOAN: 7 year maximum
• INTEREST RATE: 8-9%
• REPAYMENT: Monthly principal and interest
• POINTS: Up to 2 points
• APPLICATION FEE: $150
• 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: Equipment must be located in a facility located within Chicago metropolitan area (Illinois)
• 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.