Lending FAQ

Projects must be located in one of the six counties: Cook, Kane, DuPage, Lake, McHenry, and Will. The location must also meet CDFI standards for serving low- and moderate-income areas with an income level below 120% of the Area Median Income (AMI).

Begin by completing a loan inquiry form on CCLF’s website. After submission, you’ll consult with a loan officer to discuss your project in detail. If your project aligns with CCLF’s lending criteria and areas, you’ll proceed to the application process.

A loan inquiry provides valuable feedback about your chances of receiving financing and outlines the next steps. It also helps you avoid spending time on an application if your project does not meet CCLF’s criteria. For instance, our lending team might suggest attending our Project Readiness Workshop before applying. Alternatively, if timing is critical and eligibility is clear, you may be asked to submit the entire application immediately. This process benefits both you and our staff.

No. Before submitting an application, you must discuss your project with CCLF’s lending team. Complete a loan inquiry form here to start the process.

Financing community development projects is complex and risky. A credit decision requires detailed information about the project, including the applicant’s management and financial capabilities. All loans are rigorously underwritten, and every detail on the application is double-checked. This is standard and responsible lending practice.

The loan approval process can take six to eight weeks after the application is submitted. This timeline assumes all required documents are provided promptly.

Interest rates vary based on the type of credit and prevailing market conditions. For specific rate information, it’s best to consult directly with a CCLF loan officer.

If you have questions about the application, please contact CCLF’s lending team at [email protected] for clarification and assistance.

No, all applications require a non-refundable application fee: $250 for nonprofit organizations and $350 for for-profit entities. These fees help cover the costs associated with processing applications.

Yes, CCLF offers personalized technical assistance. You can contact [email protected] to schedule a consultation with a loan officer who can guide you through the process in detail.

Loan amounts are determined based on your project’s specifics and your financial capacity. CCLF assesses each project individually to ensure borrowers can meet debt service requirements.

A solid and thorough business plan is crucial. CCLF has approved loans to new organizations based largely on stellar business plans and the integrity and energy of key staff and board members.

Yes, CCLF offers technical assistance (TA) and has partnered with educational institutions to provide borrower readiness courses. Our TA helps borrowers prepare comprehensive deal packages, including financial planning.

CCLF evaluates creditworthiness as part of their comprehensive assessment. While a specific credit score requirement isn’t specified, we consider various factors, including credit history, when reviewing applications.

Equity is an important factor in loan considerations. CCLF typically requires borrowers to demonstrate financial capacity, which may include equity contributions. It’s advisable to discuss your specific situation with a loan officer.

No. However, it is useful for our lending team to know. CCLF will not stand in the way if your organization secures a more favorable deal elsewhere. We are open to co-lending with other CDFIs and banks if it benefits your organization.

CCLF’s capital is flexible and can transform into a different kind of loan even after closing. Loans can convert from predevelopment to construction credit, mini-permanent mortgage, or from short-term to long-term loans as needed. However, this feature is not automatic and must be negotiated on a case-by-case basis.

CCLF does not provide grants; all loans must be repaid with interest. However, our technical assistance can guide you toward resources that may help in securing funding.