CEDLI | Direct Real Estate Lending

DIRECT REAL ESTATE LENDING PROGRAM
CEDLI has provided over $130 million in capital to its target markets directly, and in partnership with its shareholders it has provided over $430 million in capital. The purpose of CEDLI’s Direct Real Estate Lending Program is to provide permanent capital to finance the development of community facilities and other real estate based economic development and community revitalization projects. CEDLI will structure its financing to accommodate the needs of community focused nonprofit corporations and other institutions whose mission is to meet the economic and social needs of under served markets and disenfranchised populations.

Summary of Terms
Loan Amount	$50,000 to $1,000,000 by CEDLI. CEDLI can arrange for additional participants for larger loan amounts.
Loan Type	Real estate loan with first mortgage on real property.
Terms	Up to 15 year maturity fully amortized in 15 years, or 10 year maturity with 25 year amortization.
Interest Rate	Interest rate fixed at market rates, (minimum 8.0%) with a five year reset provision.
Origination Fee	2.0% origination fee; application fee of $500 collected upon loan acceptance; reimbursement of CEDLI legal expenses for loan documentation.
Loan to Value	Maximum LTV 85% for loans up to $500,000; up to 75% LTV for larger loans up to $1,000,000.
Borrower Equity	Borrower’s equity should be at least 15% to 25% of the project’s appraised value. Subordinated debt, grants or contributions made for the purpose of completing the project qualify as borrower’s equity.
Use of Proceeds	Loan funds can be used for acquisition, expansion, rehabilitation or refinancing of a new or existing building.
Collateral	CEDLI requires that the loan be secured by a deed of trust which constitutes the first lien against the real property being financed.


Borrower Eligibility
Target Borrower	Community focused nonprofit corporations and other institutions whose mission is to meet the economic and social needs of under served markets and disenfranchised populations by promoting job creation and economic self-sufficiency, supporting human development, or providing community services.
Track Record	Borrower must have a proven track record in delivering its services to the community it serves.
Operating History	Borrower, its parent corporation, or the majority of the participating agencies of a consortium corporation, should be in existence and active in service delivery for 5 years or more.
Location	Borrower must provide services in the state of California.
Creditworthiness	Borrower must meet CEDLI underwriting guidelines related to managerial quality, financial and organizational capacity, and project feasibility and economics.

Application Process
If you are eligible to apply for a CEDLI loan based on the criteria described above, or you would like more information about the Direct Real Estate Lending Program, please contact a CEDLI office near you: Northern California - Oakland, Clinton Etheridge, Vice President, (510)267-8992. Southern California - San Diego, Mark Sullivan, Vice President, (619) 756-7000. Southern California - Los Angeles, Ray Mendoza, Vice President, (213)347-2208. Statewide, George Williamson, President, (510)267-8997.