Program 7 – Non-recourse Loans for Projects, M&A or Growth Capital
| Type Of Loan: | Non-recourse, 100% LTC, Project or Portfolio financing. Similar structure to a line of credit with disbursements, but not a revolving line — borrow then repay. Once repaid, further borrowing would require a new loan request. Also good for acquisitions and refinancings as well as project funding and growth capital. |
| Length Of Loan: | Flexible terms but standard is 10 years with 2-3 year grace period for development projects. Can be longer (up to 20 years) if project warrants it. |
| Prepayment Penalty: | None |
| Initial Costs: | No up front or due diligence/LOI fees |
| Minimum: | $25 million minimum per loan; prefer $50mm-$1B |
| Interest Rate: | ~6-12% fixed annual interest (APR). Lower rates with a minimal profit share. All rates subject to change and based on quotation at the time of application. |
| Timing To Funding: | 60-90 days after closing. Average is 75 days. Borrower receives 100% of the loan amount (4x the 25% deposit), not 75%. Funding is ordinarily delivered in 2 or more tranches, but if the borrower prefers lump sum distribution (full amount of loan proceeds in a single draw) this is available at a slightly higher rate of interest — likely in the range of 9-12% APR. |
| To Qualify: | Project, venture or M&A transaction must have reasonably low risk; see comparison. Client needs to provide 25% security deposit at closing and the lender will 4X that. The deposit sits and is released upon loan repayment in full, which can be either from operating cashflow or from subsequent refinancing. |
Program 7’s intake steps:
- NDNCA (available upon request); fee agreement
- Executive Summary – lengthy business plan or offering memorandum, presentation, etc. is fine but I also need a simple 1-pager that captures just the essential facts of what, where, how much, etc.
- Budget and Proforma in Excel
- Proof of Funds/Asset for the 25% (we need to be able to authenticate the value)
- Summary Application (specific to this lender, will provide the package of forms after screening)
- Preliminary “tranche” draw schedule (request form/template)
- Management/Sponsor bios
To start: Contact Us to see if you qualify, or to request 1-page Loan Program 7 Tear Sheet.
