New Markets Loan Program
Comercio Arizona Real Estate I CDE, LLC ("Comercio Arizona"), a subsidiary of Chicanos Por La Causa, Inc., in association with Wells Fargo Community Development Corporation and the City of Tempe, will provide subordinate commercial real estate loans through their New Markets Loan Program as a means of stimulating economic growth in low-income communities in the Maricopa County, Pinal and Pima Counties. The loans will be funded at below market pricing.
Target Amounts:
$500,000 to $3,000,000
Product Types:
Generally existing or to be built income producing properties consisting of office, industrial, retail, and mixed-use projects deriving less than 80% of revenues from residential leases. The Loan Program will only fund the commercial portion of a mixed-use project and will not fund rental housing.
Market:
Maricopa, Pima, and Pinal Counties
Loan Profile:
Priimary or Subordinate or Mezzanine Financing. Generally new construction, substantial value-added improvements or rehabilitation or acquisition of existing property.
Census Tract
Requirement:
Based on the 2000 Census, the property must be located in a census tract within the City of Tempe with a 20% or greater poverty rate or median household income of 80% or less than the Phoenix MSA median household income.
Term:
(a) Mezzanine Construction loans of 6-24 months; converting to a Mini-Permanent Loan of not greater than 7-years; OR
(b) Subordinate Mini-permanent Loans of 7 years.
Equity Requirements:
Minimum Owner Equity 10% (combined basis);
Start-Up and Existing Businesses
SBA Microloan Program
Prestamos’ Microloan Program addresses the problems encountered by small business entrepreneurs seeking financing, and emerging micro-enterprises among the communities in Arizona, thus increasing the potential for success of those businesses in Prestamos’ target areas. Eligible counties include Maricopa, Pima, Graham, Gila, Coconino, Mohave and La Paz. Prestamos’ Microloan Program offers loans from
$2,000 to $35,000.
Application
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Loans for Existing Businesses
SBA Community Express Loan
Prestamos is an intermediary for processing of SBA Community Express Loans. The program was developed to provide financing for business needs that fall between the Microloan program and conventional loan programs. Loans under this program can be made in low or moderate income urban and rural areas, and to minority, women and veteran small business owners. This program features an easy pr to expedite processing for loans from $35,000 to $250,000.
Application
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How Funds May Be Used?
As a direct loan, funds may be used for renovation, rehabilitation, working capital, or the purchase of equipment, machinery, furniture, fixtures, inventory or supplies. All loan proceeds must create or maintain jobs for low or moderate income people.
A few types of loans are specifically precluded. These include loans for real estate speculation, financing of existing debt, gambling enterprises, or changing of business ownership, unless it keeps the business in operation and/or facilitates ownership by economically or socially disadvantaged persons. Loans may not be made to distribute to principals, or to replenish funds used previously for that purpose. Lending and investment companies are not eligible.
All loan applications are evaluated according to typically applied standards of commercial lending such as, management capability, credit history, collateral, character of applicant(s), and ability to service debt. In all cases, the project’s employment, income and ownership impact on the economy are considered.
How Do I Apply?
Please call the Prestamos office at: (602) 258-9911.
The complete application process averages 4 - 6 weeks.
All applications are subject to review and approval by the Prestamos Board of Directors. Local bank approval is required for Community Express Program.
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