Forward Community Investments: Loans to Nonprofits

BASIC LOAN GUIDELINES
Investment Forward Community Investments (“FCI”), a Wisconsin-based community loan fund, builds capacity in statewide nonprofits through low-cost loans and expert advisory services.  FCI works directly with organizations that serve economically-challenged individuals and households where affordable housing, community services and facilities, along with community stabilization, is the strategy used to promote long-term economic self-sufficiency.  Many of FCI’s loans are made in partnership with banks and credit unions. Because of our flexibility, FCI can assume more risk, either by making a loan that could not be made by a conventional lender or by taking a subordinate position to conventional financing.

Eligible Borrows

Any Wisconsin nonprofit 501(c)(3) organization, faith-based organization, cooperative or community development organization that provides services to low- to moderate-income populations.

Eligible Projects
• Affordable housing
• Nonprofit facilities
• Economic development initiatives
Loan Amoun ts $5,000 to $400,000, with consideration given to projects up to $1 million

Eligible Uses of Loan Proceeds
• New construction
• Acquisition and rehabilitation of existing facilities
• Leasehold improvements
• Working capital
• Predevelopment loans, including land acquisition, professional fees and development costs
• Equipment

Basic Loan Types
• Primary and subordinate mortgage loans (LTV up to 95%)
• Construction financing
• Gap financing and bridge loans
   Equipment loans and leasehold improvements
   Working capital

Terms
Terms from three to five years with longer amortization periods (up to 30 years)

Interest Rates
FCI’s mission is to provide below-market rates; please call us at (866) 687-1468 for current interest rate quotes

CollateralAlways required but [their] mission allows [them] to be inherently more flexible than conventional lenders  

Fees
1% origination fee; $250 documentation preparation fee, along with other standard closing costs such as filing costs and/or title insurance and, depending on the complexity of the transaction, legal fees.

For more info: Carrie Vanderford, vice president of lending services, (866) 687-1468 or carriev@forwardci.org  


Source:  http://www.forwardci.org/financing/guidelines.html