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#2275187 - 09/06/22 06:45 PM Community Development Loan?
WDCA Offline
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Joined: Nov 2015
Posts: 85
Would a loan to a business to refinance a building that that has a non-profit as a tenant be any way considered a community development loan? The loan is over 1MM and the non-profit works to help LMI individuals/communities and has an 8-year lease in the building. Thank you

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#2275205 - 09/06/22 08:58 PM Re: Community Development Loan? WDCA
Len S Offline
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Joined: Oct 2004
Posts: 2,078
Connecticut
How are the proceeds being used? Is the non-profit already in the building?
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#2275218 - 09/07/22 11:03 AM Re: Community Development Loan? WDCA
WDCA Offline
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Joined: Nov 2015
Posts: 85
Yes, the non-profit is already a tenant in the building. The loan is to refinance the construction loan for the building taken elsewhere into a permanent loan.

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#2275309 - 09/08/22 07:25 PM Re: Community Development Loan? WDCA
Len S Offline
Diamond Poster
Joined: Oct 2004
Posts: 2,078
Connecticut
So you are not funding the non-profit but you are funding the developer's mortgage. I don't think this has a very good chance of qualifying for CD. Is it in a LMI tract? Maybe you could claim it under the Revitalization/stabilization definition.
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CRA Exam Preparation, CRA Performance Evaluations, Key Performance Benchmarks, & maps

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#2275320 - 09/08/22 08:41 PM Re: Community Development Loan? WDCA
WDCA Offline
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Joined: Nov 2015
Posts: 85
Thanks Len!

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