Financing FAQs

How much can I borrow from an RLF or NBR loan?
“Gap” financing up to 25% of total project cost under the RLF loan program with a cap of $350,000. “Gap” financing up to 50% of total project cost under the NBR loan program.
 
What is the lending rate or what is it based on?  
RLF and NBR interest rates are based upon a determination of what is necessary and appropriate for the transaction.  Typically, the private financing is made available at market rates and OED’s participation at a below market rate.

How long do I have to repay a RLF or NBR loan?
The term of the loan can be from five to fifteen years depending on the use of the funding, but the loan can be amortized over a longer period of time.

How long does it take to process a loan?
Preliminary approval of an application usually takes two (2) weeks from the submittal of a complete application, including firm commitments of private financing.  The processing of a formal City loan agreement and the closing of the loan takes approximately twelve (12) weeks.

Can you refer me to a private financial institution to get the primary funding to complete the proposed project?
Private funding sources can come from banks (specifically banks you have relationships with), SBA guaranteed loans, Community Development Corporations, micro lenders, investors willing to invest capital and owner’s equity/contribution.  We encourage you to contact as many private lenders as necessary to secure their participation.  

Do I have to guarantee the loan?  How does Denver secure their loan?
All individuals who own at least 20% of the business will have to guarantee the loan.  In addition, the City will require the pledge of personal assets, if available, of all guarantor(s).  Denver normally takes a subordinated position to the participating bank on all business assets.

What are the important criteria you require to have a loan approval?

We look at the economic feasibility and evidence of repayment ability of the proposed project and benefits to the City (neighborhood impacts, creation of jobs, other economic development factors, etc.).    
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