Minority Contractor Loan Fund
The Rise CDFI Minority Contractor Loan offers term loans and lines of credit tied to specific construction contracts. Currently, we originate these loans at 6% interest with origination fees of 100 basis points. In general, no other fees (application fees, etc.) are charged. We will make loans as small as $20,000, and tailor the amount and term length to the specific contract requirements, timelines, and cash flow needs of the borrower.
Rise CDFI pairs all loans with development services to enhance the borrower’s short-term and long-term business goals and financial success. Rise has a significant history of providing capacity-building technical assistance to small nonprofit businesses. These services include staff and board development, financial management, strategic planning, and much more. Building off this framework, we provide and coordinate services to minority- and women-owned contractor borrowers, meeting each firm where they are and aligning capital with the tools to grow.
Small Developer Loan Fund
Our Small Developer Loan Fund builds upon our long-time experience lending capital for predevelopment expenses by adding construction lending for neighborhood-based residential and mixed-use development. We see this product as meeting a need for affordable loans that support the rehab of “naturally occurring affordable housing.” That is unsubsidized residential development in neighborhoods where acquisition/rehab (particularly for the re-use of vacant property) can be done at a range of affordability on a purely market basis. We can also lend on developments using subsidies such as CDBG, HOME, and Affordable Housing Trust Funds.
Rise’s unique development expertise means thoughtful and realistic loan underwriting and providing borrowers with the capacity-building tools they desire to grow their business and increase their impact in a given community. The ultimate goal is to build wealth for, by, and within a neighborhood – leaving each block in a stronger place than before.
What’s Next for Rise CDFI?
As we continue rolling out these new loan programs, we will focus on increasing our capital base so that we can make more loans, provide more services, and bring more alignment of community development tools to our communities. Rise is awaiting word on two grant applications and is focusing on collaborations with groups such as the St. Louis CDFI Coalition as well as anchor institutions to increase capital for all CDFIs in the region. Key elements to the Rise CDFI are the development services and business assistance offered to all borrowers. One of our top priorities is to ensure we are aligning with as many existing programs as possible (versus duplicating), and helping ensure our borrowers have access to the right programs and support so that they can grow, build capacity, and ultimately build wealth.