GETTING A LOAN FROM IMPACT CAPITAL:

WHAT YOU CAN EXPECT

Initial Consultation

We strongly recommend that you contact Impact Capital prior to submitting an application.  When you are ready to apply for a loan from Impact Capital, call one of the Program Officers below who will answer any questions, ensure your project meets threshold requirements (described on Page 1 of the application), determine which loan product is appropriate for your project, and work with you through the application process:

Application Timing

Applications are accepted at any time.  For CDLF Phase 1 Predevelopment loans, applications must be submitted to Impact Capital prior to state and local public funding applications (such as the State Housing Trust Fund or City or County applications for CDBG, HOME, 2060, 2163, etc.).

Acceptable Application Forms

For CDLF loans, you may only submit the Impact Capital loan application. 

For CIF loans, you may submit either the Impact Capital loan or the most recent public funder’s application (e.g., State Housing Trust Fund, City or County application). If submitting an application other than that of Impact Capital, you must receive approval from the Program Officer

Underwriting

Underwriting staff will analyze the physical and financial details of the project, as well as make an assessment of the strength of the applicant organization.  Impact Capital staff will provide candid feedback regarding the application and project to the applicant during this phase. The lending staff may advise the applicant that changes are necessary to demonstrate feasibility, and that the application cannot be further processed until changes are made.

Once underwriting is complete, the Program Officer will prepare a Request for Program Action (RPA) and forward the RPA to the appropriate Loan Committee.  The RPA presents an analysis of the deal, its strengths and risks, and makes a recommendation for funding. 

Loan Approval

The lending staff will present the RPAs to the appropriate loan review committee for discussion, modification, and action. Funding decisions are typically made within six to eight weeks following the receipt of a complete application.  This may vary depending on loan type and loan committee.  For a schedule of Loan Committee meetings, please contact your Program Officer.

If the Committee approves an action, the Program Officer will prepare a funding commitment.  If the Committee does not approve the action, a letter outlining the reasons financing was not awarded will be mailed within five business days. When the issues identified in the letter are resolved, the application may be reconsidered.

Commitment

If the Committee votes to approve an action and award funding, either a loan agreement or commitment letter will be mailed within five business days.

The loan agreement serves as the commitment for Phase I Predevelopment Loans.  It  must be signed and returned to Impact Capital with a 1% Origination Fee.

The commitment letter for all other loans will detail the conditions precedent for final closing and the necessary steps to complete the transaction. The timing for final loan documents will vary according to requirements.  Loan origination fees will be collected upon loan closing.

The loan commitment will be valid for up to 6 months.  If the loan does not close within that 6 month period, Impact Capital may extend the commitment, provided there haven’t been any material changes in the project, for a renewal fee of 0.25% of the loan amount.

Closing

The Program Officer will establish a closing date with the borrower and a schedule for document preparation and review, and satisfaction of all closing conditions will be provided to you.  The closing date presumes that all loan documents will be finalized and all conditions to the commitment will be resolved by the closing date.  If documents are to be recorded you will be asked to open escrow at the title company providing title insurance.  Impact Capital may have suggestions about which title company it prefers to use.  If the loan is used to acquire real estate, the title and survey must be presented to Impact Capital at least 10 business days prior to closing. 

Disbursements

Funds will not be disbursed until conditions to disbursement outlined in the Loan Agreement have been met.  Borrower must submit a request for disbursement that outlines how any conditions have been met and attach documentation when appropriate. When the lending program staff is satisfied that conditions have been met, s/he will authorize a disbursement, and a check or wire will be made available within 10 business days.