CEDLI | Commercial Real Estate Loans

COMMERCIAL REAL ESTATE LOAN PROGRAM
The Commercial Real Estate Loan Program is a specialized loan program designed to provide easily accessible commercial real estate financing to small businesses, in partnership with a CEDLI member bank, for the purchase or rehabilitation of owner-occupied commercial real estate. The Commercial Real Estate Program expands CEDLI’s ability to serve its target markets, including minority businesses and underserved geographies-particularly those in rural and low income communities in California.

Summary of Terms
CEDLI Amount	$50,000 minimum to $500,000 maximum.
Loan Type	Real estate loan with deed of trust on real property in second position.
Co-Lender	Lender with First Deed of Trust on commercial property must be CEDLI member bank.
Repayment Terms	Maximum maturity of 10 years. Amortization up to 25 years. Monthly payment of interest and principal. On an exception basis, CEDLI will consider interest-only payments of up to 12 months.
Interest Rate	Interest rate either a) floating at prime plus 2.0% per annum or b) fixed at market rates with a five-year reset provision. Minimum interest rate of at least 8.0% per annum.
Origination Fee	3.0% loan origination fee; reimbursement of documentation/legal fees.
Loan to Value	Maximum LTV 85%.
Use of Proceeds	To finance acquisition, rehabilitation, or expansion of commercial real estate, or to refinance commercial property. Real property to be owner-occupied.


Borrower Eligibility
Target Borrower	All small businesses are eligible for CEDLI loans in both urban and rural areas, a priority is placed on making the program accessible to minority and women owned businesses, as well as businesses that are located in low income communities and rural areas. Special Purpose Vehicle: Borrower may be a special purpose vehicle or LLC created by and guaranteed by small business operating company.
Borrower Location	Statewide in California, either urban or rural areas.
Operating History	Minimum of three years of operating history in the small business.
Size of Business	Small businesses with up to approximately $10 million in sales.
Type of Business	For profit and nonprofit businesses are eligible.
Management	Stable and competent management in place.
Financial Criteria	Small business is profitable in latest 12 months with positive trends in future cash flow. Small business has positive tangible net worth. One year financial projection demonstrating adequate debt service capacity and a debt service coverage ratio of 1.1x or greater. No major derogatory personal credit on part of principals of small business.


Application Process
If you are eligible to apply for a CEDLI loan based on the criteria described above, or you would like more information about the Commercial Real Estate Loans Program, please contact a CEDLI office near you: Northern California - Oakland, Clinton Etheridge, Vice President, (510)267-8992. Southern California - Los Angeles, Bruce Dart, Vice President, (213)347-2202. Statewide, Ray Mendoza, President, (510)267-8998.