SERCAP’s Community Development Loan Product
Southeast Rural Community Assistance Project, Inc.’s (SERCAP) Community Development Loans provide local governments, public service authorities (PSAs), 501(C)3 nonprofit organizations, private agencies, user associations, and more, with financing for community development and economic development projects. Projects may include, but are not limited to: building acquisitions and/or renovations, construction, and land purchases.
Service Area
SERCAP’s Community Development Loan Product is available in all seven (7) states in SERCAP’s service area, of: Delaware, Maryland, Virginia, North Carolina, South Carolina, Georgia, and Florida.
Loan Information, Terms, and Fees
SERCAP’s Community Development Loan Product, includes the following loan terms and fees:
- Loans range from $10,000.00 to $250,000.00.
- Loan terms up to 10 Years.
- Loan Payments may be approved based on an amortization period determined by the useful life of the collateral, up to 10 years, with a balloon payment at maturity. Loans may be refinanced upon maturity.
- Interest Rate is set on the Cost of Funds Index (COFI) Farmer Mac II 10-year reset interest rate plus 100 basis points.
- No Penalty for Prepayment.
- Collateral is flexible, but is a determining factor in credit decision.
- 3% Loan Application Fee*
- 4% Loan Origination Fee*
- Applicant is responsible for outstanding Legal Fees.
- Applicant may Finance Legal Fees and Appraisal Costs in the Loan, if provided
sufficient capacity. - Projects must serve communities with populations of 50,000 residents or less.
- Project population ideally will be at-least 30% low-to-moderate income (LMI). Projects which benefit lower incomes, such as economic development projects, will also be considered. Reasonable measures, such as US Data, will be used to research demographics.
*Fees may be rolled into the Loan, if sufficient funds are available.
For more information about SERCAP’s Community Development Loan Product, contact SERCAP’s Loan Fund at:
Email: loanfund@sercap.org
Phone: 540-345-1184
TTY: Dial 711