Services: Loan Providers (Non-traditional)
Contact: Lars Kuehnow, Neighborhood Development Officer
Address: 202 W Superior St 401, Duluth, MN 55802
The Local Initiatives Support Corporation (LISC) has developed a financing tool to provide low-interest lons to qualified commercial real estate projects in rural America. The Growing Rural Communities Fund finances real estate acquisition and construction costs to spur job creation and economic revitalization in distressed communities.
Loan Types: Construction to mini-perm or mini-perm loans
Eligibility: Eligible borrowers include nonprofits, sole proprietors, LLCs, or corporations. Eligible properties include office, retail, mixed-use, industrial, helath care, education, or other commercial or nonprofit use. Propect must be located in the continental U.S. within a low-income, non-metro census tract.
Loan Amount: $250,000 to $2 million
Interest Rate: 2%, fixed
Term: Seven years, up to three years interest only, then 25-year amortization
Repayment: 10% fixed prepayment penalty for the seven-year term
Loan Fees: No loan fee; legal costs may apply
Collateral: Real estate collateral with 80% minimum loan-to-value
Debt service coverage: Minimum 1.10x DSC
All loans subject to underwriting and credit approval. Terms subject to change.