Eligible organizations may apply for $10,000 to $100,000 in loan funds.
Up to 24 months, based on anticipated closing of final construction/project financing, with ability to extend based on satisfactory progress and ability to close within a proposed extension period.
Loans will accrue simple interest at a rate of 6% during the term of the loan. Typically interest and principal is due and payable at the closing for the proposed project’s final construction financing package.
Loan collateral or a guaranty is not a required element of the Predevelopment Loan Program. Depending on individual circumstances, CDFA may seek security for predevelopment loans if assets are available (through a mortgage, property lien, guaranty, etc.).
Permitted Uses of Funds
All reasonable, third-party predevelopment costs are permitted, including: preliminary feasibility assessment, architectural and engineering studies, environmental assessment, energy audit, renewable energy consultation, historic and development consultants, schematic or other drawings, option payments or property acquisition, legal fees, pre- authorized staffing costs by the applicant organization, and any other costs approved by CDFA.
Up to 15% of the total loan amount (not to exceed $15,000) may be spent on preliminary feasibility assessment, including early market scoping, market studies, cost estimates, community meetings, etc. Funds may not be used for prepayment of developer fees or for costs incurred before a loan is approved.