Competitively-selected applications for direct loans of up to $2 million at 4% fixed interest rates are available. The mission of this program is to provide financial assistance through fixed-rate loans with flexible terms to empower small businesses and real estate development projects with demonstrated community value and need.
While many types of small businesses are encouraged to apply, preference is provided to applications that:
- Rehabilitate or reconstruct vacant or blighted properties;
- Create new housing;
- Expand healthy and fresh food access in communities with insufficient access;
- Preserve or expand access to child care; or
- Demonstrate clear community need and/or support.
The next competitive application round will open during the
Summer of 2026. To learn more, please
schedule an initial consultation for a meeting with our business development team.
Sign up for email updates to receive notifications about competitive rounds.
Eligible Uses of Funds
Loan proceeds can be used for:
- Acquiring, constructing, or rehabilitating real estate
- Purchasing equipment
- Funding working capital/ operating costs
- Business start-up costs, including acquisition
- Refinancing debt
Eligibility Requirements
To be eligible for a DHCD business loan, an applicant must be:
- Located within a Sustainable Community or Priority Funding Area
- Organized as a for-profit or nonprofit entity
- Engaged in commercial activity (100% residential projects are not eligible)
The following are ineligible recipients:
- Residential or transient living businesses, including multifamily or single-family housing developments
- Nursing homes, assisted living facilities, crisis care centers, group homes, transitional housing, and homeless shelters
- Community halls, fire stations, hospitals, colleges, or universities
- Adult bookstores, adult video shops, other adult entertainment facilities, gambling facilities, gun shops, liquor stores, massage parlors, pawn shops, tanning salons, or tattoo parlors
Loan Terms
The power of this program lies with its flexibility to fit terms to an individual business’ or projects’ needs. However, the following are set requirements:
- Loan amounts cannot exceed $2 million
- Loan terms may be up to 30 years
- Collateral is required. However, senior, pari passu, and subordinate lien positions are acceptable, subject to underwriting
- Fixed interest rates subject to underwriting
- Personal guarantees are required
Application
Application Status: Closed
Application Opens: Summer 2026
For more information:
