For-Profit Predevelopment or Construction Loan

"For-Profit" Predevelopment or Construction loans are available for small to mid-size development firms who are engaged in a housing or economic development project that will benefit low- to moderate-income people and / or communities.

Criteria

• MAXIMUM AMOUNT: $350,000
• MAXIMUM LOAN-TO-VALUE: 90%
• TERM OF LOAN: 2-year maximum
• INTEREST RATE: Prime plus 1 to 4 points
• REPAYMENT: Monthly interest-only payments until maturity
• POINTS: 1 to 2 points
• APPLICATION FEE: $250
• FEES: Normal closing costs apply (including legal fees)
• ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
• SECURITY:
  a) First mortgage (valid first lien on property) and personal guarantees; and / or
  b) other collatoral: cash, Letters of Credit, first or second position lien on other property, and so forth
• OTHER: CCLF may provide technical assistance where applicable

Eligibility

• PROPERTY RESTRICTIONS: Must be located within Chicago metropolitan area (Illinois)
• SOCIAL IMPACT RESTRICTIONS
  a) Project must be in census tract whose median household income is 80% (or less) of the area median income; and / or
  b) Income of project end-user can not exceed 100% of area median income
  c) Documented community support is also required.
• BORROWER RESTRICTIONS: Small to mid-size firm (minority-owned and women-owned firms especially encouraged)