The Predevelopment Loan Program is an exceptional financing opportunity for community developers working on early stage development project focused on re-stabilizing existing Baltimore City neighborhoods. The developer borrowers may be non-profit or for-profit entities that are in the planning stages where the initial site control and other planning work is needed in advance of formal development or project financing. Designed for properties with a variety of potential uses, this flexible program typically serves during the planning stage on the redevelopment of rental or homeownership housing for low- to moderate income families. However, community-based mixed-use or commercial may also apply.

Predevelopment Property Type:

Future planned rental apartments, commercial buildings, community facilities or mixed-use commercial (storefront w/rental units above) located in Baltimore City.

Allowable Uses:

Residential rental, commercial lease, mixed use, community services. No bars, liquor establishments, gas stations or establishments storing or handling hazardous materials.


Up to 3 Yrs.

Interest rate:

WSJ Prime plus 100 to 200 basis points (1 – 2%) floating with a six percent (6.0% floor).


50% – 80% (Max.) of “as is” or unimproved appraised value, or up to 100% if accompanied by additional credit enhancement.

Credit Enhancement (Additional):

In addition to the property collateral, BCL requires one, or a combination of a guaranty, letter of credit, and/or dedicated liquid account of the following:

  • 20% of the total loan or cost: 50%-80% Loan to Cost
  • 40%% of the total loan or cost: 100% Loan to Cost

Cash Reserves:

Borrower must show existing reserves equivalent to 50% (Min.) of anticipated debt service over loan term.

Eligible Use of Funds:

Acquisition, predevelopment studies, legal, etc. (non-acquisition costs – 20% (Max.)

Maximum Loan:


Terms subject to change without notice. An advance appointment with a BCL Loan Officer is highly recommended to all loan applicants.