Project Loans

Real Estate

The Delta Redevelopment Funds provide first lien and subordinated loans with flexible rates and terms to brownfield and infill real estate development projects. We combine capital from New Market Tax Credit investors and lenders for investment in qualified projects in low-income census tracts in Illinois, Indiana and Wisconsin. All loans mature after seven years, allowing projects to “season” before seeking refinancing. Borrowers pay interest only during the seven-year period. Interest rates are competitive. Loan proceeds can be used for acquisition, soft costs, environmental remediation, site preparation, demolition, project development and operations. The current minimum loan is $1.0 million. The current maximum loan is $8.0 million. Managers of the Delta Redevelopment Funds are adept at layering traditional and non-traditional financing sources, such as government and philanthropic grants and government financial incentives.

Environmentally Beneficial Businesses

The Delta Redevelopment Funds provide first lien and subordinated loans with flexible rates and terms to environmentally beneficial, or “green,” businesses. These loans have flexible rates and terms. We combine capital from New Market Tax Credit investors and lenders for investment in qualified projects in low-income census tracts in Illinois, Indiana and Wisconsin. All loans mature after seven years, allowing projects to “season” before seeking refinancing. Borrowers pay interest only during the seven-year period. Interest rates are competitive. Loan proceeds can be used for acquisition, soft costs, environmental remediation, site preparation, demolition, project development and operations. The current minimum loan size is $1.0 million. The current maximum loan size is $8.0 million. Managers of the Delta Redevelopment Funds are adept at layering traditional and non-traditional financing sources, such as government and philanthropic grants and government financial incentives.

Pre-Development Assistance

Forgivable Loans for Pre-Development

The Delta Redevelopment Funds make forgivable pre-development loans and provide technical assistance to real estate development and green business projects that the Funds’ managers believe have significant potential to qualify for project loans. Such projects must be located in low-income communities in Illinois, Indiana or Wisconsin. Forgivable pre-development loans require repayment if the project is completed but will be forgiven if it is not. Terms and rates of forgivable loans are determined on a project-specific basis. There is no minimum pre-development loan. The current maximum loan is $100,000 per project. Such loans are typically used 50% to pay for third-party costs such as engineering, legal, architectural and environmental assessments, market studies, business planning and tax increment financing studies; and 50% to pay for project structuring and other technical assistance provided by the managers of the Delta Redevelopment Funds.

Fee-for-Service Consulting

The Delta Redevelopment Funds provide fee-for-service consulting for real estate development and environmentally beneficial business projects, including project planning, structuring, financing and management. For example, we can help with feasibility and impact analyses; green building option analyses; and Leadership in Energy and Environmental Design (LEED) certification. Managers of the Delta Redevelopment Funds are experienced in the complexities of urban and brownfield redevelopment and adept at identifying and layering multiple funding sources, including government and non-traditional financing. For example, we have consulted with nonprofit organizations to assess the potential for using New Markets Tax Credits and to structure activities to qualify.