Loans
Lending is an essential instrument in LISC’s community development toolkit. As one of the largest community development financial institutions (CDFI) in the country, LISC provides financing to community-based organizations, businesses and developers to support projects that have positive and long-term community centered impact. LISC's loan products are intended to elevate, mission aligned projects.
Just as intention created the racial wealth gap, it takes intentional practices to close them. And that’s why LISC is focused on increasing access to capital in communities of color and supporting the creation and preservation of community assets. We offer a variety of flexible lending products designed to help local groups bring development projects to fruition. Our loans cover every phase of development, from predevelopment to permanent financing; and we're committed to working together with developers to get projects done.
Lending Products:
- Predevelopment: Early stage investments in planning, design, and environmental and structural assessments for projects that are proceeding to construction. Proceeds are used to pay due diligence expenses, deposits and other predevelopment costs.
- Acquisition: Financing to help pay the purchase price and closing costs for property acquisition. These loans are generally made when construction and permanent financing have been secured or preliminarily committed.
- Construction: Loans to projects, either as a sole source of financing or in concert with other lenders. Construction loans are provided for hard and soft building and improvement costs, including new construction, substantial or moderate renovations, and leasehold improvements.
- Mini-Permanent: Longer-term, partially amortizing loans for certain projects, including rental housing, community facilities and economic development projects. LISC’s mini-permanent loan is typically originated as a construction loan that converts to mini-perm when certain conditions are met, such as issuance of a certificate of occupancy.
- Permanent: Long-term financing or refinancing of acquisition, construction and renovation projects in low-income areas or that serve low-income populations for several project types, including the rental housing, charter schools, health centers, commercial and nonprofit asset classes.
- Bridge: Financing to bridge the timing gap between expenses needing current payment and receipt of cash from committed or anticipated sources of capital not yet available, including capital campaign commitments, public contracts or note proceeds, earned developer fees and tax credit capital contributions.
- Working Capital: Financing to fill credit gaps for our strongest borrowers by providing flexible working capital lines of credit to meet organizational cash flow needs or pay project-based expenses.
In addition to LISC’s loan products, we work closely with our affiliates to leverage Low-Income Housing Tax Credits (LIHTC) and New Market Tax Credits (NMTC) to aid the flow of private capital into community-driven endeavors.
Why borrow from LISC?
- We have staff who live in and understand the communities we serve.
- We bring national and local investment resources and nearly 40 years of experience.
- We provide flexible loan capital in underserved places.
- We invest early.
- We have the expertise in specialized underwriting for such complex projects as schools, health care centers, and affordable housing.
- And we are willing to go to historically risky markets where more traditional lenders may not venture.
