Lending Criteria

CCLF finances projects across metropolitan Chicago that revitalize neighborhoods, promise high positive social impact, incorporate sustainable design practices and have the potential to leverage significant additional investments from other sources.

CCLF often works with challenging but promising projects that other financial institutions will not or cannot finance.

Project Selection Criteria

To be approved for a loan, a project must produce positive social benefits for an under-served community or low- to moderate-income households in the six-county (Illinois) Chicago metropolitan area and meet the following criteria:

• Project has collateral or guarantor
• Loan-to-collateral value does not exceed 100%
• Project has sufficient cash flow to meet debt service at a ratio of 1:2 or better
• Borrower’s management and financial capacity are sufficient for their project

Eligible Borrowers

• Nonprofit corporations
• Worker-owned enterprises
• Affordable housing or business cooperatives
• Mission-driven for-profits and single purpose entities

Eligible Projects

• Affordable housing acquisition, rehabilitation and new construction
• Community facility space acquisition, rehabilitation and new construction
• Commercial real estate acquisition, rehabilitation and new construction
• Equipment purchase or working capital for a community development social enterprise
• Other economic development projects

General Lending Criteria

• Loan applications are evaluated in terms of project feasibility, fiscal soundness, applicant’s management and financial capacity, community support, and social and environmental impact of the project.
• Interest rates vary over time, but are typically below market rate when adjusted for risk. Current rates, closing costs and other details are available from CCLF’s lending team.
• Loan commitments are typically decided in 6 to 8 weeks after CCLF receives a completed application.
• Loan terms generally range from 1 to 2 years for predevelopment and construction financing and 5 to 15 years for minipermanent mortgages.