Lending Guidelines

1. Eligibility & Purpose

  • Eligible Borrowers: Commercial property owners within the Special Assessment District.

  • Permitted Use: Funds must be used for approved land development purposes such as building façade restoration, infrastructure upgrades, new construction, or adaptive reuse—aligned with municipal development goals.

  • Ineligible Use: No funds can be used for debt servicing, speculative acquisitions, or unrelated investments.

2. Loan Structure

  • Loan Size: $25,000–$250,000, based on project scope and collateral value.

  • Interest Rate: 2%–4% fixed rate over term.

  • Term: 1–10 years, depending on collateral, project timeline, and repayment capacity.

  • Amortization: Interest-only monthly payments, with principal amortized over the remainder of the term.

3. Underwriting Criteria

  • Credit Evaluation: Borrowers must demonstrate reasonable credit, supported by tax returns or personal financial statements. No minimum score required; focus on repayment capacity.

  • Collateral Requirement: First-position lien on the subject property; UCC filing as needed.

  • Equity Contribution: A minimum of 10% borrower equity based on project cost.

  • Experience & Plan Assessment: Borrower must present a two-page project narrative, preliminary budget, and timeline. Experience is preferred but not mandatory.

  • Compliance Check: Property and borrower must be in good legal standing (paid taxes, no code violations, clear title).

4. Application & Approval Process

  1. Pre-Application Consultation: Schedule a meeting to discuss project feasibility and eligibility.

  2. Formal Application Submission: Includes loan application, financial documents, project description, outlined budget, timeline, and supporting permits.

  3. Review & Decision: SAFE’s Loan Review Committee evaluates and approves/rejects within 30 days of submission.

  4. Loan Agreement Execution: Approved applicants sign a loan agreement with terms, repayment schedule, and reporting requirements.

5. Borrower Obligations & Monitoring

  • Draw Disbursements: Funds released in phases—after milestones such as permit issuance, foundation completion, framing, etc.—upon verification.

  • Reporting Requirements: Quarterly progress updates required, including budget reports, invoices, photos, and milestone documentation.

  • Site Inspections: SAFE will conduct periodic inspections to verify compliance with agreed scope and standards.

6. Repayment & Default

  • Repayment Schedule: Interest-only payments during construction; amortizing principal thereafter.

  • Prepayment: Allowed without penalty.

  • Default Events: Include non-payment, failure to complete specified milestones, code violations, or insolvency.

  • Remedies for Default: SAFE reserves the right to pursue lien enforcement, request code enforcement intervention, or transfer ownership to another qualified developer.

7. Transparency & Reporting

  • SAFE publishes annual reports including:

    • Loan pipeline, draw activity, and repayment status

    • Project outcomes and community impact metrics

    • Financial performance and loan fund sustainability

8. Program Governance

  • Managed by SAFE’s internal Loan Review Committee.

  • Updates and compliance managed in accordance with Clayton County ordinance requirements.

  • SAFE reserves the right to adjust loan amounts, rates, or terms in alignment with best practices and sound investment policy.

Local Ordinance & Special Assessment for Fund

 

Contact us to request a loan application, schedule a consultation, or learn how this fund can help turn your underutilized property into a community asset.