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What do I need to know before I apply?
Non-profits must meet the Loan Fund's mission and purpose tests - the application stops if the tests are not met.
Does the Loan Fund take grant requests?
With the exception of some grants under its Florida Green Communities Initiative, the Loan Fund does not issue grants, it makes loans.
Does the Loan Fund make loans like a bank?
The Loan Fund underwrites much like a bank in that it requires a complete financial picture of organization; project financial statements; and a complete understanding of all sources & uses of funds. The Loan Fund looks for cash flow to repay its loans. However, the Loan also looks at things a bank does not - experience and reputation in the community count and social impact is important. The Loan Fund may consider non-traditional collateral. The Loan Fund considers more flexible loan structure. The Loan Fund's rates and fees are typically comparable to bank rates for similar loans.
How much can I borrow and what at what rate?
The maximum loan available for a single loan is currently $750,000 - 1,500,000 depending upon the loan type. The Loan Fund will consider more than one loan at a time. The maximum currently available for multiple loans may be $2,000,000 or even more depending on a variety of factors. Rates generally rise with the length of term requested. They are currently in the 5.50 - 7.00% range. The Loan Fund offers fixed rate financing only, not floating rates.
Do you require collateral? What collateral is acceptable?
Collateral is required. The Loan Fund does not make unsecured loans. Most projects financed by the Loan Fund have real estate as collateral. Borrowers can offer developed or undeveloped real estate, but the Loan Fund will also consider equipment and accounts or grants receivable or other forms of collateral. The Loan Fund accepts loan-to-value on some, but not all, collateral as high as 85-95%.
How long does a loan approval take?
The answer is highly variable depending on a number of factors. For most loans, the Loan Fund has a monthly approval process. A complete application needs to arrive at the Loan Fund no later than the last week of the month to be considered during the following month. Decisions are made during the third week of the month. However, the decision to bring a loan request to our Lending Committee rests with the Loan Officers and may require that the Borrower submit additional or revised information. This can sometimes cause delays in the approval process. The number of applications in process may also affect timing. For more information, go to our Apply Now page and read about the Application Process.
What are the next steps if my application is approved?
Once a loan is approved, a commitment letter is usually issued within 2-3 days. Simple closings can be done within 2 weeks after receipt of a signed commitment letter. Complex closings usually take longer, especially if attorneys are needed.
What is the purpose of the Commitment Letter?
To outline the terms and conditions under which the Loan Fund will lend and to create a checklist for closing the loan.
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