Predevelopment

Pre Development

Early stage capital for design and engineering, market and environmental studies, appraisals, legal costs, filing and application fees, deposits and working capital

Uses Early stage capital for design and engineering, market and environmental studies, appraisals, legal costs, filing and application fees, deposits and working capital
Loan funds can be fully drawn at closing or on an as-requested basis
Loan amount Up to $1,500,000
Loan term Up to 36 months​ - loans can be term or revolving
Interest rate From 5.00%, dependent on collateral/security, loan term, complexity and certainty of process to move project to construction or other start point
Collateral/security Loans up to $500,000 can be unsecured
Larger loans can be secured by real estate; pledges of grant funding, developer fees, or other project receivables; assignment of ownership interest, etc.
NWO’s will provide repayment guaranties for predevelopment loans made to affiliates
Repayment source Typically construction or acquisition financing for development, or could be alternative funding such as grants
Fees Application Fee - $1,000
Origination Fee - 1.5% to 2.00% of loan amount
Third-party reports Appraisal and environmental assessment for real-estate secured loans