Guidelines
Financial Underwriting
Each borrower will be evaluated to assure that they have the financial capacity to repay the loan within the terms of their agreement. The final decision will consider the overall financial condition of the borrower and the reasonableness of the financial projections provided with the application. Required financial documents are listed in Appendix B.
Loan Amount
Eligible organizations may apply for $30,000 to $300,000 in flexible loan funds.
Loan Term
Up to 10 years. Interest-only payments are allowed during the construction period, up to 6 months, followed by principal and interest payments. There is no penalty for Pre-payment.
Interest Rate
CDFA sets its base lending rate (“CDFA Base Rate”) by considering the prime rate (also known as the Wall Street Journal Prime Rate), cost of capital, and potential impact on borrowers. Applicants may qualify for one or more discounts with a maximum discount of 3.0%. At no point will the lending rate be below 2.0%. An interest rate calculator is available on the CDFA website. See CDFA Interest Rate Calculator (https://resources.nhcdfa.org/interest-rate-calculator/). CDFA reserves the right to adjust the offered rate based on project risk, term, community or economic development impact, or other factors.
Loan to Value Ratio
CDFA allows for loans up to 80% of the value of the implementation project (20% borrower equity required). See Collateral section below for information on collateral value.
Origination Fee
A sliding fee equal to 1% of the CDFA loan amount (see the fee table below) is charged to cover loan underwriting and full application review. This fee is due at the time of loan closing.
If your application is denied due to underwriting or eligibility, this fee is refundable.
| Origination Fee | Minimum Fee | Cap | |
| Municipality | 1.0% | $350 | $700 |
| Nonprofit | 1.0% | $350 | $1,100 |
Closing Costs
CDFA charges pass-through fees for security recording/filing and for any attorney fees. In a typical loan, these fees total less than $250.
Other Costs
CDFA reserves the right to charge for special requests (e.g., loan reamortization; amendments that require changes to loan documents) or other extenuating circumstances that may result in additional direct costs or staff time.
Collateral
CDFA requires security on Community Development loans. CDFA will accept a mortgage on real property, a UCC filing on the other assets of the borrower or a combination where warranted.
Note: The terms listed above are subject to change.
Permitted Uses of Funds
Capital expenditures and related non-operating administrative costs for one project or a related group of projects that advance the Program Objectives noted above. Ongoing operating costs are not a permitted use of the fund.
