All loans are rigorously underwritten and evaluated in terms of their fiscal soundness, project planning expertise and general management capacity of the borrowing organization. However, compensating factors are considered and include social impact of the project, the degree to which the borrowing entity has demonstrated progressive efforts to leverage funds, success in tribal development activities and similar factors.
- The current lending maximum is $1.5MM per project.
- Interest rates are generally set between 7% and 9% on a fixed or interest-only basis and loan terms range from 6 months to 5 years.
- The origination fee is 1 percent of the loan amount; closing costs are usually set between 0 and 2 points (as a percentage of the total loan amount).
- Upon receipt of a complete application, loans are typically committed within 4 to 6 weeks.
- NHC also makes short term, expedient loans for pre-development financing; the process for loan approval generally takes 2 to 3 weeks
- NHC does not make grants: all loans must be repaid, with interest.
- NHC does not make cash flow loans.