Frequently Asked Questions
Should I fill out a CCLF loan application now?
Why is there a phone screening first?
Why is the application so long and detailed?
If CCLF takes risks, why must all loans be repaid, with interest?
Will mediocre or bad credit keep my organization from getting financing?
How important is my organization's business plan?
If the CCLF Loan Committee says "no," does that mean the process is over?
If my organization is pursuing other financing options, will that hurt our chances at CCLF?
If circumstances change, may we come back to CCLF for financing?
What if, later in my development project, my financing needs change?
I've gotten information from this website and my organization is ready to go. Should I fill out a CCLF loan application now?
No. Before submitting an application, you must always discuss your project with CCLF's lendingteam [at] cclfchicago [dot] org (Lending Team.) Fill out the online inquiry form or call the Program Assistant at 312.252.0440, extension 205, to start the process.
Why is there a phone screening first?
A phone screening will enable you to get valuable feedback about your chances of receiving financing and what the next steps should be, as well as help you avoid spending a lot of time filling out the application if the project does not meet CCLF's criteria. For example, our Lending Team might suggest that members of your organization attend our Project Readiness Workshop before applying for a loan. Or sometimes when timing is critical and eligibility is clear, you may be asked to submit the entire application immediately.
Why is the application so long and detailed?
Financing real estate development projects or commercial enterprises is an extremely complicated process, fraught with risk. A credit decision cannot be made reasonably without detailed information about the project, including the applicant's management and financial capabilities. All our loans are rigorously underwritten, and all information on the application will be double-checked. This is not a matter of distrust; it is simply standard and responsible lending procedure.
If CCLF takes risks, why must all loans be repaid with interest?
We have many repeat borrowers and we want to be around when your organization needs additional financing! We rely on the interest "spread" to help keep our doors open. We also have responsibilities to our investors: we promise that we will work to protect the money so that it will come back to be re-lent to another borrower. Plus, it helps your organization build a credit history that, if you make payments on time, will aid you in getting future financing.
Will mediocre or bad credit keep us from getting financing?
Not necessarily. This is information that the loan officer will need in order to evaluate the application. Our Lending Team may ask you to explain what happened and demonstrate that those factors have been remedied. CCLF does not have automatic "deal-killers." Misleading information will only hamper our lending team's ability to help your organization succeed.
How important is my organization's business plan?
Never underestimate the power of a solid and thorough business plan. CCLF has approved loans to brand new organizations, based largely on their stellar business plans and the integrity and energy of the key staff and board members.
If the CCLF Loan Committee says "no," does that mean the process is over?
Certainly not. Usually the committee will specify changes or additional requirements that may make them comfortable enough to approve the project at a later meeting. Our lending staff will be direct, respectful and honest about the outcome of the Loan Committee process, and will happily discuss the next steps for your organization.
If my organization is pursuing other financing options, will that hurt our chances at CCLF?
No. It is useful information for the Lending Team to have, and CCLF will not stand in the way if your organization can get a more favorable deal somewhere else. CCLF is open to co-lending with other CDFIs and banks if that works best for your organization.
If my organization goes elsewhere, may we come back to CCLF if circumstances change?
Of course. We will be happy to jumpstart an old application process. Just give us a call.
What if, later on in my development project, my financing needs change?
CCLF's capital is acrobatic, meaning that it can transform into a different kind of loan, even after the closing. Loans can "morph" from a predevelopment into a construction credit or a minipermanent mortgage, or from a short-term to a long-term loan, if need be, as circumstances change. This feature is not automatic, however, and must be negotiated on a case-by-case basis.
Have questions? lendingteam [at] cclfchicago [dot] org (Email the Lending Team) or call 312.252.0440, extension 205.
