The Neighborhood Development Loan, provides affordable financing to fill funding gaps for developers of mixed-use, commercial and industrial projects located throughout Philadelphia’s neighborhoods.
|Loan Amount||Range from $50,000-$500,000. 10-20% minimum equity contribution, subject to underwriting.|
|Interest Rate||to be determined based on credit criteria and market conditions|
|Term of Loan||Typically 5 to 7 years.|
|Underwriting:||10-20% borrower equity required. Typically secured by a subordinate lien position on the subject property and other collateral as may be required, including personal guarantees of individuals owning 20% or more of the project. Combination of credit, cash flow, collateral, financial position, management capacity and industry risk.|
Clients should schedule a preliminary meeting with PIDC to review project eligibility. Completed loan applications will be underwritten by PIDC staff and must be reviewed and approved by the PIDC Loan Committee and PIDC Board of Directors. Following loan approval, PIDC issues a commitment letter to the client. Settlement may occur once the terms of the commitment are satisfied. The process from application submission to settlement generally takes approximately 60 to 90 days to complete.
|Application||$250 for loans up to $100,000; $500 for loans up to $500,000. Non-refundable fee due at time of application submission.|
|Commitment||1.5% of the Loan Amount, payable upon acceptance of PIDC’s commitment letter|
|Closing||Legal and closing costs, as well as third party costs such as appraisal, construction monitoring, and UCC filings.|
|Prepayment||No prepayment penalty|
Fees are subject to change. Please confirm all transaction fees with PIDC prior to application.