CEDLI | Loans to Lenders

LOANS TO LENDERS PROGRAM
The purpose of CEDLI’s Loans to Lenders Program is to support and work in partnership with the established network of nonprofit and public sector lending programs in California to address credit needs of hard-to-reach borrowers and smaller loan sizes. Under the Loans to Lenders Program, CEDLI provides credit to intermediary lenders, including community development financial institutions, multibank CDC’s and other non-bank private and public lenders which in turn re-lend CEDLI’s funds to a range of end borrowers, including but not limited to micro-enterprises, small businesses, community development organizations, and other borrowers which are not eligible for bank financing. Loans to Lenders is a limited recourse lending program designed for intermediaries with the capacity and experience to assume the limited financial liability associated with re-lending CEDLI funds.

Summary of Terms
Loan Amount	$50,000 to $500,000 per year based on the needs and capacity of the intermediary lender.
Loan Type	Non-revolving line of credit drawn down as the funds are re-lent to end borrowers.
Pricing	Below market interest rate. Approximately 3.0% below the prime rate (prime rate -3.0%). Subject to a minimum interest rate of 4.0% p.a.
Origination Fee	1.0% plus loan documentation fee of $500.
Use of Proceeds	Loans to small businesses, non profits and community organizations for economic development.
Reserves	Intermediary lender will be required to hold reserves against funds drawn down and re-lent.
Recourse	CEDLI’s recourse to intermediary lender will be limited to 15% of the line of credit approved by CEDLI for the intermediary lender.
Security	Loans to intermediaries will be secured by an assignment of the intermediary’s collateral interest in the loans to the end borrower.


Borrower Eligibility
Target Borrower	Community development financial institutions, other non-bank private and public lenders, multibank community development corporations engaged in economic development related lending activity. Special consideration would be given to those intermediary lenders involved in micro lending to socially and economically disadvantaged borrowers, and locally based lenders which serve a targeted geographic service areas consistent with CEDLI’s mission. Community development financial institutions, other non-bank private and public lenders, multibank community development corporations engaged in economic development related lending activity. Special consideration would be given to those intermediary lenders involved in micro lending to socially and economically disadvantaged borrowers, and locally based lenders which serve a targeted geographic service areas consistent with CEDLI’s mission.
Operating History	Intermediary should have a minimum of three years of lending experience. Organizations with less than three years experience will be considered on a case by case basis.
CEDLI Certification	CEDLI will certify intermediary lenders under the Loans to Lenders program based on their management and organization capacity, financial position, lending performance and track record.
Technical Assistance	Must have the capacity to provide technical assistance directly or indirectly to end borrower.


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 Loans to Lenders 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.