How do I apply for a loan?
Download the online application and mail to our offices. You may also email the application. A loan officer will review your application and contact you.

What is the application process?
Once all pertinent information has been received, loan staff will perform a detailed credit analysis to assess the strength and weakness of the transaction. The analysis will also determine if a loan recommendation will be warranted for Loan Committee review. Typically, Loan Committee meetings are held monthly.

What is the minimum and maximum loan amounts?
The minimum loan amount is $50,000. TMF may fund “stand-alone” investments up to $300,000 and can provide up to $500,000 in tandem with other lenders and/or local CDFIs. The Fund may provide financing up to $750,000 to transactions meeting specific criteria and collateralized by real estate.

How can the loan proceeds be used?
Loan funds can be used for permanent working capital, machinery/equipment, special purpose vehicles, business acquisition, real estate acquisition, and bridge financing. Funds may also be used for rehab/construction for owner-occupied businesses.

What is the interest rate?
Pricing is competitive relative to risk. It is generally fixed but may be adjusted quarterly/annually.

Are there fees associated with the loan?
A fee of 1-2% of the approved loan amount is due at signing of the commitment letter. Closing costs, including attorney’s fees for document preparation, are paid by borrower. Other fees related to the transaction depend on the type of collateral being financed and are paid by the borrower directly to the service provider (such as title commitment fee, insurance, survey, appraisal, environmental site assessment, etc).

What is mezzanine financing?
Mezzanine financing is a form of commercial lending whereby a lender provides a loan that bridges the gap between the total project cost, or asset being acquired, and the amount of the loan proceeds provided by the first lien lender. Mezzanine financing is typically short term in nature and carries interest rates higher than first lien loans due to the higher degree of risk involved resulting from the subordinate position in collateral and higher combined loan-to-value of the entire transaction.

What is “tandem lending”?
Tandem Lending is a financial structure whereby TMF loan funds are utilized in a transaction in conjunction with another lender.

What is a Community Development Financial Institution (“CDFI”)?
A CDFI is a lending institution that has been certified by the U.S. Department of the Treasury and makes loans to businesses located in qualified census tracts. The requirement to maintain the CDFI designation is for the CDFI to invest a minimum of 60% of their loan funds into qualified census tracts. TMF has been a CDFI since 2002.

Does TMF provide financial counseling to prospective borrowers?
TMF does not provide financial counseling because of lender liability issues.

What is the maximum loan term?
The term of a loan depends on the asset being financed. For real estate, maximum term usually does not exceed 10 years with a maximum 20 year amortization. In most cases, the term for loans range from 5-7 years. For equipment purchases, the term of the loan and amortization match the useful life of the underlying assets not to exceed 7 years. For permanent working capital loans, the maximum term is usually 5 years or less.