CRF Loan Program


NSDC also arranges business loans through the Community Reinvestment Fund (CRF), an alternative financing source for applicants who don’t meet all of the qualifying criteria for an SBA 504 loan but who would benefit from a similar loan structure.

A typical purchase would be structured as follows:

Bank loan 50%
CRF loan 40%
Borrower equity 10%*

*Single purpose buildings and start-up business are subject to additional borrower equity

Use of Funds

  • CRF loans can be used for the purchase, construction or improvement of owner occupied commercial real estate or for the purchase of equipment for business use.

Term

  • The maximum term is 20 years for real estate; for equipment the maximum is 10 years.

Loan Amount

  • The minimum CRF loan is $50,000; the maximum is $1,000,000

Down Payment

  • There is a minimum 10% down payment (or equity) required for CRF loans of $500,000 or less; 15% is required on loans over $500,000

Security

  • Loans are normally secured by a second lien on real estate or equipment being financed. The first lien on real estate may not exceed $3 million.

Owner-Occupancy

  • The operating company must occupy at least 51% of the property being financed, but exceptions can be considered if company meets debt servicing requirements.







"The Community Reinvestment Fund has been a great addition to our menu of services. It provides NSDC with a private-capital, community development funding resource to offer those clients for whom SBA financing may not be the best option."

Debra Alexandre
Senior Vice President
Nevada State Development Corporation