Real Estate Based Economic Development Loans

This is a product funded by the Member Loan Pool. Properties located in empowerment zones, enterprise zones, low and moderate-income neighborhoods, or other areas targeted by local governments for redevelopment, or properties that house non-profits and/or where the non-profits provide services would receive favorable consideration. Approved property types include commercial, retail, and industrial with preference for retail and mixed-use properties (i.e., includes residential units).

The primary loan structure parameters are presented under Lending Guidelines. The following items are specific to the Economic Development Loan structure.

• Loan types available for this plan include construction, rehabilitation, and mini-perm loans with similar structures as provided for the multi-family program.
• Favorable consideration would be given for leases to a service provider when such service provider offers services that enrich the community. There may be commercial tenant/business operation restrictions.

The prepayment premium would be structured as presented in the multi-family permanent loan program.