Chicago Community Loan Fund

Social Enterprise Loans with CCLF

Although CCLF is not a traditional small business lender, financing is available to spark social enterprises operated by for-profit and nonprofit organizations that provide a social benefit. CCLF financing products for social enterprises allows MBE/WBE/DBE entrepreneurs to buy equipment and acquire working capital to establish or expand their enterprises. Financing is also available for social enterprises that consider the environment and maintain green features that reduce the carbon foot print.

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Types of Social Impact Loans

Working Capital Loans

Medium-term loans to allow nonprofits, social enterprises, small businesses and worker-owned cooperatives to buy equipment needed to establish or expand their social enterprise or mission-driven business.

Criteria

MAXIMUM LOAN-TO-VALUE: 100%
TERM OF LOAN: 7 year maximum
INTEREST RATE: 7-9%
REPAYMENT: Monthly principal and interest
POINTS: Up to 2 points
APPLICATION FEE: $350 ($250 for nonprofits)
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: 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, 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.

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.