Community Development Financial Institution (CDFI) Requirements
Eligibility
Small and midsize businesses meeting the following criteria are encouraged to contact WPFSI to discuss eligibility for CDFI Loans:
- WPFSI will loan to single person businesses or larger
- We will work with businesses that generate any or no revenue.
- We will work with startups.
- We lend to businesses within a 35-mile radius of Philadelphia (Trenton-Wilmington).
- Priority is given to businesses that are located in a low-to-moderate income census tract or primarily employ low-to-moderate income individuals. (Minority & women-owned businesses)
Uses
Available either for new projects or refinancing of existing debt related to:
- Working capital
- Machinery and equipment purchases
- Building improvements
- Leasehold improvements
- Real estate acquisition & construction (speculative real estate ventures are not eligible)
Financing
Working Capital and Equipment Loans are available as a senior or subordinate loan product with the following terms:
Item | Description |
---|---|
Loan Amount | $1,000 to $100,000 |
Term | Flexible |
Interest Rate | Prime rate plus 300 basis points. |
Equity Required | Varies based on the use of funds. |
Underwriting | Combination of credit, cash flow, collateral, financial position, management capacity, and industry risk. |
Timing and Procedure
The applicant submits a completed application to WPFSI for staff review, at which time a thorough credit analysis is performed. For applications that receive a positive credit evaluation, the loan is presented to the WPFSI Loan Committee and the Board of Directors. Following loan approval, WPFSI issues a commitment letter to the applicant. Settlement of the loan may occur once the terms of the commitment letter are satisfied.
Fees
Fees will vary with each transaction and generally include:
Item | Description |
---|---|
Application | $125.00 depending on loan size – nonrefundable fee, payable at time of application submission. |
Closing | Ranges depending on loan size (does not include third-party costs such as appraisals, construction monitoring, and UCC filings). Fees are subject to change. |