The BCL Guidance Line of Credit is focused on experienced small to mid-size developer and/or contractor who has a need for a committed source of funding. It supports the activity of a borrower who anticipates acquiring and rehabbing a series of properties. This is designed for developers (including non-profits) and individual investors with a vision to rehabilitate properties in low- and moderate-income neighborhoods.

Property Type:

Rental apartments, single units for rental or homeownership, commercial buildings, community facilities or mixed-use commercial (storefront w/rental units above).  Rental investment properties must be refinanced after project completion.


Property must be in a low-to-moderate income neighborhood, preferably a “target” area of Baltimore City.


No bars, liquor establishments, gas stations or establishments that store or handle hazardous materials.

Additional Requirements:

Rehabilitation is required (minimum $25,000 per unit). BCL may impose certain limitations on the number of units under construction at any one time as well as initial  limitations on the total portion of funds advanced which may be less than amount of the loan commitment.


12 months with one 12-month extension.

Interest Rate:

WSJ Prime plus 200 basis points (2%) 6% floor. Floating, interest-only


1.0% to 2.0%

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


  • 75% of “as-is” acquisition or purchase price
  • Maximum 90% of construction costs
  • Maximum “as completed” Loan to value 80% of appraised value
  • All valuations, construction budgets and third-party due diligence must be completed prior to the release of any advances from the line of credit

Debt Coverage Ratio:

1.2X (Ratio of Net Operating Income to Debt Service payments) required for rental property.


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 collections may disqualify a borrower.

Maximum Loan:


Loan Features:

BCL will require an interest payment reserve to cover the estimated amount of interest during the term of the loan. Additionally, BCL will require that a 10% contingency be added to the cost estimates.


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


  • 1st lien position on all property acquired or rehabbed with this product
  • 1st or 2nd lien position on existing real property or liquid assets may be required based on risk and DSCR
  • Assignment of leases and rents, sales contracts, management agreements and contractor’s agreements.
  • Personal Guarantees required by all principals holding 20% or greater interest in the project.

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.

Advance Guidance:

  • Properties must be approved by BCL staff prior to being added to line of credit
  • Borrower equity must be used prior to BCL Funding


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

Conversion to Permanent Loan:

While not a part of loan term, BCL will consider a request for conversion to a permanent loan when conditions warrant. At the minimum property must be occupied and lease acceptable to BCL. Other conditions, fees and approvals may apply.


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 support 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.