What Are The Terms and Conditions Of The Loan?
The goal of the BRLF program is to fund the cleanup of Brownfields properties in order to promote economic development, reinvestment, and job creation and retention. Loans will be structured to encourage borrowers to put properties back into productive use.
In most cases, loan funds will supplement other sources of funding such as municipal or community development funds, other Brownfields funds, investor funds, or as gap funding to attract traditional lending institutions for redevelopment. A technical team is available to assist you in identifying available fund sources to help meet the cleanup and redevelopment project needs.
- Loans can range up to $1,200,000, not to exceed 80% of the total eligible project costs.
- Generally, the interest rate will not exceed prime plus two percent, but will be determined on a project by project basis. Low or zero interest rates may be offered to encourage short-term repayments.
- The maximum loan term is five years. However, full repayment is required when:
- The project is refinanced;
- The redeveloped property is sold.
- A loan origination fee of not more than two percent of the loan may be charged. In addition, a $500 nonrefundable loan application fee will be due at the time of loan application.
- All loans require collateral, which may include reasonable business and personal assets.
- Scheduled repayment is required during the term of the loan, and may be fully amortized, including principal and interest, or interest only.