Clay County

Revolving Loan Fund

Building housing units is a tall order in today’s world where supply chains change constantly; the labor pool is ever-changing, and having a steady line of capital is a must. Thrive West Central has partnered with Clay County to create a long-term revolving loan fund to help builders and developers overcome some of the challenges of building in today’s world.

Eligibility Criteria

  • Project must be located within Clay County

  • Applicants must be a builder or developer in good standing with all state and local government agencies having jurisdiction. Projects must be approved through Thrive’s housing scoring committee.
  • Proof of site control is required in part or full depending on the project.
  • Must meet local zoning and permitting requirements
  • Builder must demonstrate relevant construction experience and have a contractor’s license/certification
  • Applicants must be current on all taxes and have no open judgments that affect project security
  • Proof of builder’s risk and general liability insurance
  • Completed plans, budget, and timeline must be submitted
  • Project must represent residential construction or significant rehabilitation
  • Funds must be used for eligible direct project costs
  • Applicants must demonstrate adequate financial capacity to complete the project

Incentive Details

(Loan Terms)

  • Loan Amount: No maximum; subject to underwriting
  • Loan Term: Up to 7 years (3-5 years preferred unless a strong case is demonstrated)
  • Interest Rate: Fixed, determined through internal scoring; range +2% through -2% of Prime Interest Rate on varying increments.

  • Disbursement: Loan is released in draws based on documented expenditures.

  • Closing Fee: Flat $3,500

  • Repayment: Repayment terms are negotiable based on project size, credit history, and project performance.

  • Prepayment: No penalty

  • Eligible Uses: Land, site work, infrastructure, housing unit material costs, rehab, and administrative costs

  • Ineligible Uses: Equipment purchases, vehicle purchases, debt consolidation, non-housing related expenses

  • Collateral: Mortgage on subject property; additional security as needed

  • Insurance: Builder’s risk and general liability required; proof of insurance required throughout the duration of the loan

Support & Information

Support and Assistance Info

Each applicant is encouraged to participate in a pre-application meeting to assist with application development. Thrive will provide technical assistance during the application process. Thrive, and their project partners will provide technical assistance during the project development, implementation, and closeout.

Post-Completion Expectations

Post-completion expectations are that builders/developers offer a two-year warranty per Indiana State code requirements on all units. We encourage quality construction work to ensure long-term tenant/owner satisfaction.

Payment Structure

The borrower shall make regular monthly payments to the lender in accordance with the terms set forth in the loan agreement. Payment terms are negotiable. Payments not received within ten (10) days of the due date may be considered late and subject to applicable fees. The repayment obligation will continue until the principal balance is satisfied in full. Collateral is required for all loans.

Penalties for Non-Compliance

Developers/builders are required to submit a timeline for the completion of any projects and adhere to, within reason, any agreed-upon timeline for development with loans. Periodic site visits may be included on draws.

Feedback and Reapplication

If an application is not successful, feedback will be provided. Applicants are encouraged to reapply.

Process

Submission documents

  • 1

    Completed Loan Application

  • 2

    Proof of site control (deed, purchase agreement, or option agreement)

  • 3

    Proof of local/state approval

  • 4

    Project budget and construction timeline

  • 5

    Construction plans/drawings

  • 6

    Builder’s risk and general liability insurance documentation

  • 7

    Two years’ personal tax returns (all principal owners)

  • 8
    Two years’ business tax returns (if applicable)
  • 9

    Credit Report

  • 10

    Personal financial statement

Scoring and Evaluation

The review committee will score, and award proposals based on a scoring rubric. The categories for scoring are:

  • Proposal details and thoroughness of the plan
  • Housing type is in alignment with ZVA regional or local market potential analysis needs
  • Scale/quantity of developed units/impact on the environment
  • Quality of build, impact on the community, and consideration of age-friendly housing
  • Overall competitiveness of the proposal

Additional Info

  • Online, rolling application and awards
  • Thrive West Central Housing Hub team will serve as technical advisors for application development
  • Thrive uses an independent scoring committee made up of industry professionals from around the State.

Timeline

We have a rolling RFP that closes on the 12th of each month.  Applications are reviewed at the end of every month and awards are made following.

Step 1

Call to discuss your project to determine if you are applying for a grant or a loan. This will help to insure a successful RFP submission.

Step 2

Download and fill-out an RFP for your Project.

Step 3

Download Forms Submit the completed financial forms.