Chicago Community Loan Fund

Commercial Retail Loans with CCLF

CCLF provides low-cost financing for commercial real estate development in low- to moderate-income neighborhoods. Developers with current or future tenants offering access to quality goods and services such as healthy food and legal services can secure a loan for property acquisition or repair.

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Types of Commercial Retail Loans

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: $350 ($250 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: $350 ($250 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.

Mini-Permanent 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: $350 ($250 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.

Permanent 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: 20-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: $350 ($250 for nonprofits)
FEES: Normal closings costs apply
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.