FINANCING – PREDEVELOPMENT LOAN

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PREDEVELOPMENT LOAN 

Uses NIIF’s predevelopment loans are short-term loans for early stage costs to determine a project’s feasibility, including architect or engineering fees, market and environmental studies, appraisals, legal costs, filing and application fees and financial consultants.
Loan amount Up to $100,000

Higher amounts are subject to a pledge of collateral, strength of the guarantor, or other underwritten repayment sources

Loan term Generally up to 24 months
Interest rate and repayment

From 6%, subject to underwriting

Generally interest-only; an interest reserve may be required

Collateral/security Up to $100,000 unsecured

Loans greater than $100,000 may be considered with additional security through liens on real estate and pledges of grant funding, among other options.

Repayment source Typically acquisition or construction financing for the project development

Alternative funding such as grants may be acceptable.

Fees

Commitment fee — $1,000

Origination fee — Up to 1.50% of loan amount

Third party legal fees and other third-party fees as incurred

All terms are estimated and subject to periodic revision, at NIIF’s sole discretion.  Inquiries or questions may be directed by email to Lori Glass, Chief Lending Officer , at Lori@Baltimoreniif.org.