CDFI Wholesale Lending

Purpose Enable Community Development Financial Institutions to gear up against their existing loan portfolio by providing matched funding via loan finance.
Borrower Community Development Financial Institutions.
Amounts Normally £0.25m to £1.0m.
Loan to value 50% against client loan book.
Term Normally 7 years.
Interest Margin Variable Typical margin over Bank Base Rate: +2% (minimum 4% p.a.). CITR rebate may be available up to Max 3.5%.
Fixed N/A.
Capital Repayment Holiday Typically this facility is offered on an interest only basis for the first 5 years.
Fees Typically 1.5% of the amount of the advance. NOTE - All legal and valuation fees to be borne by the applicant.
Security Assignment over client loan book.
Financial Covenants Loan write offs shall not exceed a level of 30% of the total loans advanced/repaid. The aggregate Bank borrowing at any point will always be 200% covered by debts assigned to the Bank.
Requirements Unity Trust Bank to provide main bank relationship.

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