IF YOU ARE: A community economic development organization or a for-profit developer of real estate development projects in urban and Smart Growth locations.
YOU CAN APPLY FOR:
- Loans to lenders: Up to $500,000 in loans for urban-based community organizations who in turn make loans to micro-enterprises and small businesses not qualified for traditional bank financing.
- Predevelopment funding: Up to $50,000 in funds for feasibility studies and other predevelopment costs that will determine the viability of a real estate project.
- Real estate funding: Up to $1.25 million in loans to fill financing gaps in the development of community facilities and other real estate-based economic development projects, including associated environmental remediation costs.
Currently, the interest rate for this program is based on the 5-Year United States Treasury (for fixed rate loans) and Prime (for variable rate loans).
As of April 1, 2010, the base rate will be the 5-Year United States Treasury plus 100 basis points (for fixed rate loans) and Prime minus 150 basis points (for variable rate loans). Additionally, a new interest rate pricing model will be implemented, which will include criteria that will adjust the rate offered on fixed and variable rate loans based on the applicant's creditworthiness, public policy and amortization. The interest rate floor for the program is 3.00%.
BENEFITS: The Fund for Community Economic Development Program provides financial assistance to community-based organizations and for-profit developers to encourage urban revitalization.
FEES*:
- Application fee: $1,000
- Commitment fee: 0.875% of loan amount
- Closing fee: 0.875% of loan amount
Division of Taxation Tax Clearance Certificate Application Processing Fee: $75 for standard processing; $200 for expedited processing (response within three business days)
*All fees are non-refundable.