Loan Terms

Pricing: Interest rates change according to cost of funds and borrower capacity. The CDCapital reviews pricing quarterly to assess CDCapital’s competitiveness and market responsiveness.

Payments: Depending on the project, interest payments may be made periodically (monthly, quarterly, annually) or deferred until maturity.

Term: Not to exceed 24 months, typically expiring upon the earlier date of a certain event (e.g. construction loan closing) or a specific outside date.

Amortization of Principal: Loans payable on a periodic basis or in one balloon payment with all principal repaid at maturity.

Drawdowns: Schedules will vary depending on the size and type of loan.
Recourse Loans: CDCapital typically structures loans as “recourse” obligations of the borrower.

Collateral: CDCapital requires security in the form of a first mortgage on the subject property or properties; in some instances, the organization may accept a second position. The dollar value of any senior mortgage and the amount of the CDCapital loan, combined, shall not exceed the appraised value of the property plus improvements.

Property Appraisal: CDCapital typically requires real property appraisals by approved appraisers.

Insurance: CDCapital typically requires general liability, fire and hazard insurance policies on related properties, with CDCapital listed on the policy as an additional insured.