LOANS
HCRC is a mission-driven lender supporting community-based organizations. We take the time to understand our borrowers’ financial situations to find solutions for their specific needs. We offer similar loan products as a traditional bank (term loans, bridge loans, lines of credit, and commercial real estate loans), but we have more flexibility in structuring our loans. We also consider the community impact of your organization or project as part of our underwriting.
ELIGIBLE BORROWERS
HCRC is a Hawaii-based CDFI focused on supporting the business operations of nonprofit organizations and affordable housing developers. We know the success of our loan program depends on the success of our borrowers, so we provide business technical assistance to help you become loan-ready. Please get in touch with us for more information about loan availability and eligibility. As a Certified Development Financial Institution (CDFI) our target lending market is organizations who provide services to low-income populations and communities.
BUSINESS LOANS TO
NON-PROFIT ORGANIZATIONS
The HCRC Community Loan Fund supports non-profit organizations by providing financing for their business operations so they can in turn fulfill their missions.
| Term Loan | Bridge Loan | Line of Credit | |
|---|---|---|---|
| Purpose | To pay for purchase of business assets, leasehold improvements, or permanent working capital. | Provide bridge financing for collection of specific contract, receivable, pledge or sale of asset | Provide short term working capital for business operations |
| Loan Amount | $25,000 to $250,000 | $25,000 to $250,000 | $25,000 to $250,000 |
| Interest Rate | Interest rates are determined at the time of loan approval and may range from 5% to 6% depending on the strength of the borrower, source of repayment and collateral. | Interest rates are determined at the time of loan approval and may range from 5% to 6% depending on the strength of the borrower, source of repayment and collateral. | Interest rates are determined at the time of loan approval and may range from 5% to 6% depending on the strength of the borrower, source of repayment and collateral. |
| Term | Up to 5 years | Up to 2 years | Up to 2 years |
| Repayment | Monthly payments of principal and interest | Interest-only Payable Monthly, Principal Due at Maturity | Interest-only Payable Monthly, Principal Due at Maturity |
| Loan Fees | Up to 1% of loan amount plus documenation fees | Up to 1% of loan amount plus documentation fees | 1% of line limit per year plus documentation fees. |
| Collateral | Under $50,000 typically unsecured. $50,000 to $150,000 a UCC Lien on Business Assets. Over $150,000 requires additional collateral such as real estate or an assignmnet of contract/grant receivable. | Under $50,000 typically unsecured. $50,000 to $150,000 a UCC Lien on Business Assets. Over $150,000 requires additional collateral such as real estate or an assignmnet of contract/grant receivable. | Under $50,000 typically unsecured. $50,000 to $150,000 a UCC Lien on Business Assets. Over $150,000 requires additional collateral such as real estate or an assignmnet of contract/grant receivable. |
| Recourse | Full Recourse to Borrower | Full Recourse to Borrower | Full Recourse to Borrower |
| Guarantor | Non-profits are not required to provide a guarantor unless there is no identified source of repayment for the loan or there is lack of independent board governance. For profit businesses require the guarantee of all owners with 20% or greater ownership interest. | Non-profits are not required to provide a guarantor unless there is no identified source of repayment for the loan or there is lack of independent board governance. For profit businesses require the guarantee of all owners with 20% or greater ownership interest. | Non-profits are not required to provide a guarantor unless there is no identified source of repayment for the loan or there is lack of independent board governance. For profit businesses require the guarantee of all owners with 20% or greater ownership interest. |
These are an indication of our loan product’s rates and terms and are subject to change.
REAL ESTATE LOANS TO
NON-PROFIT ORGANIZATIONS &
AFFORDABLE HOUSING DEVELOPERS
The HCRC Community Real Estate Fund will support the development and preservation of affordable housing for people earning 80% or less of the Area Median Income (AMI) and non-profit organizations for the purchase or improvements of a community facility for program use.
| Line of Credit Preacquisition & Predevelopment Unsecured | Line of Credit Predevelopment Secured | Term Loan | Bridge | |
|---|---|---|---|---|
| Purpose | To pay due diligence expenses, deposits, and predevelopment costs | To pay due diligence expenses, deposits, and predevelopment costs | To provide financing for improvements to an existing property or can be made in coordination with a new 1st mortgage loan in order to meet the bankʻs LTV requirements | To bridge the timing gap between project costs and cash from committed or anticipated sources |
| Project Type | Multi-Family Rental Housing, Multi-Family For-Sale Housing, Community Facilities and Mixed Use | Multi-Family Rental Housing, Multi-Family For-Sale Housing, Community Facilities and Mixed Use | Multi-Family Rental Housing, Multi-Family For-Sale Housing, Community Facilities and Mixed Use | Multi-Family Rental Housing, Multi-Family For-Sale Housing, Community Facilities and Mixed Use |
| Loan Amount* | Up to $500,000 | Up to $500,000 | Up to $500,000 | Up to $500,000 |
| Interest Rate | Interest rates are determined at the time of loan approval and can range between 4% to 6% depending on the value of collateral and source of repayment. | Interest rates are determined at the time of loan approval and can range between 4% to 6% depending on the value of collateral and source of repayment. | Interest rates are determined at the time of loan approval and can range between 4% to 6% depending on the value of collateral and source of repayment. | Interest rates are determined at the time of loan approval and can range between 4% to 6% depending on the value of collateral and source of repayment. |
| Term | Up to 3 Years | Up to 5 Years | Up to 7 years | Up to 3 Years |
| Repayment | Interest-only Payable Monthly, Principal Due at Maturity | Interest-only Payable Monthly, Principal Due at Maturity | Interest-only Payable Monthly, Principal Due at Maturity | Interest-only Payable Monthly, Principal Due at Maturity |
| Loan Fees | 1% of loan amount plus legal fees | 1% of loan amount plus legal fees | 1% of loan amount plus legal fees | 1% of loan amount plus legal fees |
| Collateral | UCC Lien on Business Assets | 1st or 2nd Mortgage on Real estate collateral with LTV of up to 90% | 1st or 2nd Mortgage on Real estate collateral with LTV of up to 90% | 1st or 2nd Mortgage on Real estate collateral with LTV of up to 90% |
| Recourse | Full Recourse to Borrower | Full Recourse to Borrower | Full Recourse to Borrower | Full Recourse to Borrower |
| Guarantor | Special purpose entity and For Profit Organizations require a full payment guaranty from: (i) the sponsor/parent company of Borrower; and (ii) for a for-profit sponsor only, the principals of Borrower or principals of the members or partners of the Borrower. | Special purpose entity and For Profit Organizations require a full payment guaranty from: (i) the sponsor/parent company of Borrower; and (ii) for a for-profit sponsor only, the principals of Borrower or principals of the members or partners of the Borrower. | Special purpose entity and For Profit Organizations require a full payment guaranty from: (i) the sponsor/parent company of Borrower; and (ii) for a for-profit sponsor only, the principals of Borrower or principals of the members or partners of the Borrower. | Special purpose entity and For Profit Organizations require a full payment guaranty from: (i) the sponsor/parent company of Borrower; and (ii) for a for-profit sponsor only, the principals of Borrower or principals of the members or partners of the Borrower. |
*HCRC will consider loan applications over $500,000 and may look to partner with another CDFI or bank to provide a larger loan amount. As HCRC raises new capital we will be able to increase our lending amounts.
For more information on our loan products, please send an email to help@hcrchawaii.com and include your organization’s name, contact, telephone number, purpose of the loan, and loan amount.
HCRC DOES NOT AND SHALL NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, RELIGION (CREED), GENDER, GENDER EXPRESSION, AGE, NATIONAL ORIGIN (ANCESTRY), DISABILITY, MARITAL STATUS, SEXUAL ORIENTATION, OR MILITARY STATUS, IN ANY OF ITS ACTIVITIES OR OPERATIONS. IF AN APPLICANT NEEDS ASSISTANCE WITH LANGUAGE INTERPRETATION TO OBTAIN INFORMATION OR APPLY FOR A LOAN, HCRC WILL PROVIDE TRANSLATION SERVICES AT NO COST.
If you feel you have been discriminated against you may submit a complaint of discrimination to HCRC via email help@hcrchawaii.com . In accordance with federal laws and the U.S. Department of Treasury policy, this organization is prohibited from discriminating on basis of race, color, national origin, sex, age or disability. You may file a complaint discrimination by mail to the U.S. Department of Treasury, Office of Civil Rights and Equal Employment Opportunity, 1500 Pennsylvania Avenue N.W., Washington, D.C. 20220 or via email crcomplaint@treasury.gov