Equipment and working capital loans, with 3 to 5-year terms, allow nonprofits and worker-owned cooperative to buy equipment needed to establish or expand their commercial enterprise.

Criteria

• MAXIMUM AMOUNT: $350,000; working capital can represent only 10% of loan amount
• MAXIMUM LOAN-TO-VALUE: 100%
• TERM OF LOAN: 7-year maximum
• INTEREST RATE: 8-9%
• INTEREST REPAYMENT: Monthly principal and interest
• POINTS: Up to 2 points
• APPLICATION FEES: None
• FEES: Normal closings costs apply
• ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
  
  
• SECURITY: First priority lien on equipment (valid first lien on equipment) preferred and/or combination of first or second position lien on property along with guarantees, cash collateral, Letters of Credit, first or second position lien on other property and equipment and so forth
  
• OTHER: Applicant must accept CCLF technical assistance where applicable

Eligibility

• PROPERTY RESTRICTIONS: Equipment must be located in a facility located within Chicago metropolitan area (Illinois)
• BORROWER RESTRICTIONS: Must be a nonprofit, for-profit/nonprofit joint venture, for-profit subsidiary of a nonprofit, housing or business cooperative
• Must be used for a facility or project that will serve or benefit low- to moderate-income people and/or communities.

Have questions? Feel free to contact our Lending Team or 312.252.0440 ext. 203.

Profile: Youth Service Project

Read about Youth Service Project and how they used this loan product for their project!

Unfamiliar with some of the lending vocabulary? Look up those terms in our glossary!