What Are the Loan Terms?
The Loan Fund offers fixed-rate loans with flexible terms up to five years. Interest rates are negotiable but attractive. Repayment schedules are flexible and the borrower can prepay loans without penalty. The loans typically require minimal down payments.
Are the Loans Secured?
Generally yes. A lien on the property that is receiving the benefit of the improvements will typically secure the loans. Additionally, majority owners will have to provide a personal guaranty on the loan.
What Is the Maximum and Minimum Loan Size?
Although there are no minimum or maximum loan amounts, loans of less than $100,000 or over $750,000 will be considered only under special circumstances and based on funding availability.
What Are the Eligible Uses of the Loan Funds?
The borrower must utilize loan proceeds for costs that would otherwise be eligible for funding by the State Historical Fund. Eligible loan uses include:
Construction loans to rehabilitate a designated historic property
Bridge loans to cover cash shortfalls for a qualified restoration or rehabilitation project
Starting the Process