The BCL Subordinate Financing Loan Program is for experienced developers (including non-profits) and individual investors with plans to rehabilitate properties in a single project in low- and moderate-income neighborhoods where a financing gap exists.

Designed for properties with a variety of potential uses, this flexible program is for small- to medium-sized real estate development projects. This product can be used as an acquisition-construction/perm loan.

Property Type:

Rental apartments, single homes for rental, commercial buildings, community facilities or mixed-use commercial (storefront with rental units above).


No bars, liquor establishments, gas stations or establishments that store or handle hazardous materials. Rehabilitation is required (minimum $25,000 per unit).


Up to 60 months with a 240-month amortization.

Interest Rate:

WSJ Prime plus 200 basis points (2%) 6% floor. Floating, interest-only during construction; amortizing fixed rate at completion. 6% Floor


  • 1%-2% (Min.) of the loan amount based on risk and DSCR
  • 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.


Combined Loan to Value (First and second) is a maximum of 90% of after-rehab or ‘as completed’ appraised value. BCL funds will advance only after the equity, and the first lien is fully invested.

Debt Coverage Ratio:

1.15 (Ratio of Net Operating Income to Debt Service payments)

Maximum Loan:



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.

Loan Features:

BCL will require an interest rate reserve to cover the estimated amount of interest during the term of the loan. Additional, BCL will require that a 10% (Min.) contingency be added to the cost estimates.


BCL requires that all contractors and sub-contractors be able to provide record of being licensed in the State of Maryland, provide proof of requisite insurance and completion bonds. General Contractors and/or construction managers 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.


  • 2nd lien position on subject property
  • 1st or 2nd lien position on any BCL required secondary existing real property or liquid assets may be required based on risk and DSCR
  • 2nd position Assignment of leases and rents, sales contracts, management agreements and contractor’s agreements.
  • Personal Guarantees required by all principals


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, equity, 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 BCL Loan Committee.