New Market Loan Fund Facts
Loan Amount:
Eligible Borrowers:
Typical Loan Structure:
Use of Funds:
Loan Term:
Interest Rates:
GNYDC Loan Fees:
Other Lender Loan Fees:
GNYDC Loan Structure:
Eligible Borrowers:
Typical Loan Structure:
Use of Funds:
Loan Term:
Interest Rates:
GNYDC Loan Fees:
Other Lender Loan Fees:
GNYDC Loan Structure:
Up to 40% of total project cost - maximum amount of $2.5 MM. In certain cases we can provide up to 100% of project cost.
Small businesses or not-for-profits.
50% of total project costs from bank or other lender in first position, 40% from GNYDC (in second lien position), 10% equity from borrower. (Percentages may vary). GNYDC can subordinate to tax exempt financing.
Purchase, construct, renovate buildings including commercial condos and
co-ops; refinance of existing mortgages or use of equity to obtain working capital for borrower; and, purchase of major machinery or equipment.
25 year fully amortized (The first lien loan must be at least 10 year term).
Below prime. Fixed initially 7/10 years at 7/10 year US Treasury rate plus modest spread; then fixed for the remaining term at modest spread over US Treasury rate.
GNYDC's fees are based on our loan only, as follows:
Loan application fee: $1500
Loan commitment fee: 1-2% pf GNYDC loan, minus $1500
Legal Fee: $2250 - $5500
The first lien lender will determine its own interest rate, term and fees. There is no fee paid by the lender to GNYDC. GNYDC will make every effort not to duplicate documentation requirements.
GNYDC's New Market Loan Fund is designed to serve as a "takeout" permanent loan. When the project involves new construction or large-scale renovation, the other lender provides a temporary bridge loan. For straight real estate purchases, GNYDC can co-fund with the other lender and there is no need for interim financing.
Small businesses or not-for-profits.
50% of total project costs from bank or other lender in first position, 40% from GNYDC (in second lien position), 10% equity from borrower. (Percentages may vary). GNYDC can subordinate to tax exempt financing.
Purchase, construct, renovate buildings including commercial condos and
co-ops; refinance of existing mortgages or use of equity to obtain working capital for borrower; and, purchase of major machinery or equipment.
25 year fully amortized (The first lien loan must be at least 10 year term).
Below prime. Fixed initially 7/10 years at 7/10 year US Treasury rate plus modest spread; then fixed for the remaining term at modest spread over US Treasury rate.
GNYDC's fees are based on our loan only, as follows:
Loan application fee: $1500
Loan commitment fee: 1-2% pf GNYDC loan, minus $1500
Legal Fee: $2250 - $5500
The first lien lender will determine its own interest rate, term and fees. There is no fee paid by the lender to GNYDC. GNYDC will make every effort not to duplicate documentation requirements.
GNYDC's New Market Loan Fund is designed to serve as a "takeout" permanent loan. When the project involves new construction or large-scale renovation, the other lender provides a temporary bridge loan. For straight real estate purchases, GNYDC can co-fund with the other lender and there is no need for interim financing.
Sponsored by: Community Reinvestment Fund, USA
