Direct Loans - Neighborhood Impact Investment Fund

NIIF provides direct loans for impactful development projects that can be accessed at any point in the development timeline, including acquisition, predevelopment, construction, and term financing. NIIF also provides bridge financing to accelerate grants or other future funding sources and subordinate loans to complement other lenders. NIIF financing is used for housing, commercial development, community facilities and mixed-use projects.

Apply for NIIF Financing

Follow the three simple steps below to get started today.

1 Is the project in an Eligible Neighborhood?

The Eligible Neighborhoods for NIIF have been defined by Baltimore City. Investment is restricted to these areas based on the loan agreement with the City that has served to initially capitalize NIIF. For more information and to see if a location is eligible for financing from NIIF, refer to our interactive map of Eligible Neighborhoods.

2 What type of financing is needed?

NIIF can offer a variety of products to fill gaps in projects and to meet borrower’s needs. In general, these products are designed to support larger scale real estate related development or acquisition projects. The current product offering is detailed below and NIIF will consider flexible terms and conditions, including subordinated debt. As a wholesale intermediary by design, NIIF is also working to identify and support partners capable of reaching the small business and small developer markets at this time.

Term Loans

Longer term financing, typically to fill critical gaps in transformative projects including residential, commercial, mixed use projects and New Markets Tax Credit transactions.

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Bridge Loans

Interim to support timing gaps or other gaps, including subsidy payments, tax credit capital or fundraising proceeds. (Up to $3 Million)

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Construction Loans

Typically follow acquisition of property or vacant site, and are used to cover hard and soft cost associated with new construction, adaptive reuse or extensive renovation for residential, commercial or mixed use. (Up to $3 Million)

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Acquisition Loans

For purchase of vacant land and buildings planned for future development, preservation of affordability, or other redevelopment/reuse activities, for both residential and commercial development. (Up to $3 Million)

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Predevelopment Loans

Short term loans for early stage costs such as engineering, design and environmental costs.

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3 Complete the Form Below

Once you have confirmed the project is in an eligible neighborhood, and you know which financing option(s) you are interested in, please complete and submit the intake form below.

Once complete, you will be provided with a link to download a more detailed preapplication for NIIF financing.

*If you are in need of interpretation/translation services, NIIF maintains a list of providers approved by the State of Maryland and will reimburse reasonable expenses. Contact us at [email protected] for more details.

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Uses	NIIF’s term loans are longer term financing, typically to fill critical gaps for transformative projects including rental, commercial, and mixed-use properties.
Loan amount	Up to $3,000,000
Loan term	Up to 7 Years
Interest rate and repayment	From 5.0%, subject to underwriting Generally fully amortizing; partially amortized loans with balloon payments are allowable, subject to underwriting
Collateral/security	1st and 2nd position lien on property being financed; pledges on earned developer fees and, grant funds, and assignment of ownership interests may be required, subject to underwriting Generally loan to value (LTV) up to 95% of appraised “as stabilized” value for permanent financing
Repayment source	For partially amortizing loans, a balloon payment will be due at maturity or may be refinanced
Fees	Commitment fee — $5,000 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 Mark Kaufman, President & CEO, at [email protected].*

Uses	Interim funding to cover a gap in availability of funding from an identified take-out source, including: tax credit equity, grants or pledges receivable, other future subsidy, or construction or permanent financing.
Loan amount	Up to $3,000,000
Loan term	Depends on takeout, not longer than three years
Interest rate and repayment	From 5%, dependent on security, term, takeout Generally interest-only; an interest reserve may be required
Collateral/security	May include pledge on grant receivables, as documented and reviewed, liens on real estate or other assets, etc.
Repayment source	Take-out source to be identified from project plan, may include grant receivables, tax credit equity funding and other future funding sources
Fees	Commitment fee — $5,000 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 Mark Kaufman, President & CEO, at [email protected].*

Uses	NIIF construction loans follow acquisition of property or vacant sites, and are used to cover hard and soft costs associated with new construction, adaptive reuse or extensive renovation for residential, commercial or mixed use.
Loan amount	Up to $3,000,000, typically to be issued alongside another co-lender or with NIIF as a participant
Loan term	Generally 18–24 months
Interest rate and repayment	From 5.0%, subject to underwriting Payments may be interest only
Collateral/security	First (if available) or subordinate liens on the property acquired Generally loan to value (LTV) up to 90% of appraised “as completed” value; non-profit sponsors may be eligible for higher LTV, subject to underwriting
Repayment source	Permanent financing, proceeds from sales, or other takeout source, depending on project type and timeline
Fees	Commitment fee — $5,000 Origination fee — Up to 1.50% of loan amount Third party legal fees and other third-party fees as incurred Construction draw / inspection fees as applicable
*All terms are estimated and subject to periodic revision, at NIIF’s sole discretion. Inquiries or questions may be directed by email to Mark Kaufman, President & CEO, at [email protected].*

Uses	NIIF acquisition loans are for the purchase of vacant land and buildings planned for future development, preservation of affordability, or other redevelopment/reuse activities, for both residential and commercial development.
Loan amount	Up to $3,000,000
Loan term	Up to 36 months, may be longer for significant redevelopment programs
Interest rate and repayment	From 5.0%, subject to underwriting Generally interest-only; an interest reserve may be required
Collateral/security	First or subordinate liens on the property being acquired Generally loan to value (LTV) ≤ 90% of “as-is” appraised value. Non-profit sponsors may be eligible for higher LTV, subject to underwriting
Repayment source	Construction or permanent financing, depending on project type and timeline
Fees	Commitment fee — $5,000 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 Mark Kaufman, President & CEO, at [email protected].*

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 5%, 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 — $5,000 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 Mark Kaufman, President & CEO, at [email protected].*