What We Do

EMERGING DEVELOPERS

Forward Community Investments' Emerging Developer Loan Program (EDLP) intends to reduce racial and socioeconomic disparities by growing the financial capacity of emerging developers - people of color and women - to develop real estate projects and transform neighborhoods across Wisconsin.

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Eligible Participants

Real estate developers considered eligible include:

• People of color and women who don’t have access to loans from traditional financial institutions

• Graduates of the Associates in Commercial Real Estate (ACRE) program and/or the WHEDA Development Training program

• New developers who have engaged in educational training, or worked in allied industries, to expand their knowledge and skills in real estate development

Program Benefits

• Allows for-profit developers who would not normally qualify for FCI loans to apply for funding

• Allows eligible projects outside the parameters of FCI’s traditional loan products

• Technical assistance available from FCI's experienced lending team

• Connection to a network of lenders and technical assistance providers committed to supporting emerging developers of color
   

Eligible Projects

Projects must be Wisconsin-based and meet one or more of the following criteria:

• Stimulate and encourage community stabilization/revitalization

• Increase the supply and improve the condition of affordable housing

• Support the growth needs of new and existing community-based enterprises that promote economic stability or improve the supply or quality of job opportunities

• Assist social service agencies that provide programs for low-income or under-served populations

• Promote wealth creation, including market rate projects in neighborhoods traditionally not served by real estate developers

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Program Features

• Pre-development, construction, and bridge loans

• Pre-development loans up to $200,000

• Construction/bridge loans up to $600,000

• Loan terms from six months to five years, depending on the use of loan proceeds

• In the case of for-profit developers, final loan repayment is expected to come from permanent financing or a conventional loan offered by a standard financial institution

• Low fixed interest rates: dependent on the project risk, type of loan and the experience of the developer

• Flexible collateral

• The ability to bridge many types of receivables (tax credits, grants, developer fees)

• Loan-to-value ratios as high as 95% and amortizations up to 30 years

• No prepayment penalties

• For-profit developers will be required to provide a personal guaranty

• In some cases, a borrower may be asked to work with a seasoned developer or professional services consultant who can offer expertise and advice throughout the different phases of project development

Eligible Expenses

Pre-development Loans

• Earnest money and/or purchase deposit

• Building inspection and environmental reviews

• Appraisal and survey

• Title and recording fees

• Site preparation, demolition and stabilization

• Interim maintenance and project overhead

• Property taxes and insurance

• Construction bonds and/or letters of credit

• Market and feasibility studies

• Professional fees

Construction/Bridge Loans

• Land and/or building acquisition

• Construction-related expenses

• Developer and contractor fees

• Site preparation and demolition

• Financing fees (title and recording)

• Professional fees

• Carrying costs

• Project reserves

• Leasehold improvements and equipment purchase

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To talk to someone about our Emerging Developer Program contact:
lendingservices@forwardci.org