BCL supports the rehabilitation of property in residential and commercial districts in underserved Baltimore neighborhoods with its financial products. This product provides funding at an attractive rate for businesses that own or are purchasing the property in which they are located and operating. It can be used for acquisition, construction, and equipment. This is available both to for profit and not for profit organizations including community facilities.

Property Type:

Commercial and mixed-use commercial/retail buildings (storefront or storefront w/rental units above) located in commercial districts or other properties consistent with Baltimore City Planning and Zoning laws and guidelines.

Allowable Uses:

Retail, office, service establishments or other commercial use including 2nd/3rd floor residential rental apartments. Furniture, fixtures, and equipment may be included in the BCL loan. Financing inventory is not an eligible use for this product.


Financing cannot be used for bars, liquor establishments, gas stations or establishments storing or handling hazardous materials.


This is a business loan with real estate collateral. It can either be a permanent loan or a construction to perm loan with a term of 5 to 7 years. The construction period may not exceed 9 months.

Debt Amortization:

20 years until the 5- or 7-year balloon maturity date.

Interest Rate:

WSJ Prime plus 200 basis points (2%) 6% floor. Floating during construction fixed at the time of receipt by the borrower of the Use and Occupancy.


1%-2% of the loan amount
Additionally, we require payment up front for an estimated number of draws at a cost of $150 per draw. Additional draw requests will require additional fees. Fees for appraisal for loan documents will be paid by the borrower as needed to complete the underwriting pf the loan. Legal fees and Reasonable settlement expense are the responsibility of the borrower.


Maximum Loan: 90% of after-repair or ‘as completed’ appraised value on real estate. Allowance for furniture and equipment cannot exceed 50% loan to cost or value whichever is less. Value will be adjusted based on “remaining life”.

Debt Coverage Ratio:

1.2X (Min) (Ratio of Net Operating/Business Income to Debt Service payments)

Maximum Loan:


Loan Features:

BCL will require an interest payment reserve to cover the estimated amount of interest during the construction term of the loan. Additionally, BCL will require that a 10% (Min.) contingency be added to the cost estimates. BCL may require the creation either through the loan, borrower cash or an escrow account of a Maintenance Reserve consistent with industry standards.

Other Features & Conditions:

Borrower must own the property or intend to purchase as part of this transaction. Any debt must be current. BCL Loan may be combined with other available loan sources.


BCL requires that all contractors and sub-contractors be able to provide proof of being licensed in the State of Maryland, provide proof of requisite insurance and completion bonds. General Contractors and/or construction Managers and must be approved by BCL before the start of any construction activity.

Technical Assistance:

BCL can provide technical assistance to refine the development of plans and scopes of works. Based on the amount of assistance required , BCL may require a reasonable fee for this service.


Borrower must have an acceptable credit record. While BCL does not have a minimum credit score, credit records with a pattern of recent late payments of debt, delinquencies, foreclosure, bankruptcy and/or collection may disqualify a potential borrower.


  • 1st lien position on all property acquired or rehabbed with this product
  • 1st or 2nd lien position on ant BCL required secondary existing real property or liquid assets maybe an additional collateral requirement based on risk and DSCR
  • Assignment of leases and rents, sales contracts, management agreements and contractor’s agreements.
  • Personal Guarantees required by all principals
  • Property, UCC on equipment, and/or other loan guarantees may be required


Borrower must complete an Environmental Review Questionnaire for each property prior to acquisition. The Questionnaire may result in BCL requiring a Phase 1 Environmental prior to releasing funds for acquisition

Baltimore community Lending reserves the right to waive certain conditions based on the borrowers, credit, business experience, capital, or other strong factors which may mitigate risk. Baltimore community Lending likewise may ask for additional requirements such as additional collateral, guarantees or other instruments based on the information gained during their review and underwriting.

Terms are subject to change without notice. An advance appointment with a BCL Loan Officer is highly recommended for all loan applicants. Other terms subject to approval of Loan Committee