Michigan Community Capital offers two types of loans

Neither loan requires monthly payments and both are attractively priced and documented to help projects move forward.

Grant Bridge Loans

Whether it is a foundation grant, a Michigan Community Revitalization Grant, bridge against a capital campaign, or even bridging tax credit proceeds, we can help. By Making MCC a co-applicant, a project can have the grant flow to us instead of directly to the project, avoiding “Phantom Income” at the project level. MCC can lend the money to the project and help it spread any forgiveness of debt out avoiding tax impacts.

The following features apply to these loans:

  • Fully drawn at inception
  • Interest rates vary depending on whether the grant is received or is still subject to execution risk. If received, the rate is 1% and MCC keeps the deposit interest. 
  • Term is 3 years from grant receipt (minimum for tax reasons) plus any pre-grant receipt bridge term required
  • Payments either accumulate or are withheld. No monthly tracking or checks required
  • Collateral is assessed deal by deal but generally is only the assignment of the grant proceeds and sponsor guarantees.

Predevelopment Lending

MCC provides predevelopment lending on projects big and small. We primarily lend on projects that we will later become an equity partner in however; we do consider predevelopment loans outside of that context on a deal by deal basis. Amounts vary depending on the nature and scale of the deal.

Our Loans have the following features:

  • Fully drawn at inception
  • Loans are full recourse to project principles
  • Collateral is flexible depending on the situation and can be as little as an assignment of work papers to as much as a real estate lien.
  • Interest rates depend on collateral and guarantor strength but are generally between 6%-10%. 
  • No payments are due until maturity. In some cases, we lend and withhold interest vs. accumulating it.
  • Generally, no longer than 18 months.