Welcome to the EN Capital newsletter where we promote different capital sources such as private lenders, family offices and equity funds in addition to general capital markets news. We’re also promoting the new alternative investment conference series called Uncorrelated, EN Capital is a partner in certain Uncorrelated events.

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CDFI Lender Actively Deploying High LTC Construction to Perm Debt

We’re currently working with a mission-driven CDFI lending platform actively deploying capital across commercial real estate nationwide. This program offers strong leverage, competitive construction pricing, and long-term permanent financing — particularly attractive for projects that meet CDFI eligibility criteria.

CDFI Eligibility – Three Qualification Paths

Borrowers may qualify under one of the following:

1. Geographic Qualification:
   Located in low-income or NMTC-eligible census tracts
   Approximately 80% of qualifying transactions meet this standard

2. Tenant Qualification:
   Majority of tenants earning below 50% of Area Median Income (AMI)

3. Ownership / Governance Qualification:
   African American, Hispanic, or Native American ownership or governing control

Up to 30% of the portfolio may include non-eligible deals, provided overall compliance ratios are maintained.

Loan Structure & Key Terms

• Leverage:
  Up to 80% Loan-to-Cost

• Origination:
  2 points on construction
  Rolls to permanent with no additional fee

• Construction Loan:
  8.5% – 9% interest rate
  24–36 month term

• Permanent Loan:
  Pricing at 10-Year Treasury + 4%
  15+ year term options
  35-year amortization available for affordable housing

• Underwriting:
  1.25x DSCR preferred (flexible to 1.20x)
  Recourse required with guarantor (flexible for strong net worth sponsors)

Property Types

All rental commercial real estate (no for sale product). Such as:

• Retail

• Hotels and Hotel Conversions

• Multifamily

• Skilled Nursing Facilities

• Churches

• Industrial

• Properties on Indian Reservations

This platform is a strong fit for sponsors seeking high-leverage construction-to-perm financing with mission-aligned flexibility. If you have a deal that needs financing click the button:

• We’ve been building this email list this since 2017 and we’re up to 39,000+ professionals focused on the capital markets for alternative investments such as commercial real estate, the space industry, renewable energy, LATAM deals and utilizing Data-as-an-Asset. So you’re in good company.

• Sponsors make this newsletter possible! Want to sponsor this newsletter? Click here.

• EN Capital is NOT a broker dealer and does not sell securities

• EN Capital is capital advisory firm / intermediary and NOT a direct capital source. Seriously, every time we sent out an email someone replies and gets pissy when they realize we’re intermediaries and not direct lenders. It’s clear on our website, LinkedIn and emails. We don’t know how to make it more obvious. Don’t be that guy.

Be sure to connect with EN Capital on Linkedin. and visit our website here.

Nathan Whigham
President
CA DRE Broker License: 01793655

EN Capital Contact Info:
www.encapital.com
[email protected]
Direct Line: 310-465-9253