Predevelopment Loan

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.


  • TERM OF LOAN: 2-year maximum
  • 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


  • 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


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