Lending Criteria

We lend to established community organizations, including CDFIs, loan funds, microfinance institutions, affordable housing developers, and social enterprises. Through your work, we are building strong, healthy communities.

If you are seeking financing, please review the following information for eligibility and application requirements.

Please note: Calvert Foundation is not a grant-making institution. We are unable to consider grant requests.

Eligibility Criteria

Loan candidates should meet the following criteria:

  • Three years of operating experience. We do not lend to start-up organizations.
  • A solid base of net assets or net worth with minimum total assets of $10 million. As general recourse lenders, we look to an organization's net assets or equity base as a possible source of repayment. Loan candidates should have sufficient equity available to cover their desired loan several times over.
  • Evidence of good operating performance. Loan candidates should demonstrate a minimum level of self-sufficiency by posting positive net income for the past two fiscal years. Self-sufficiency is defined as the percentage of on-going operating expenses supported by earned income.
  • Audited financial statements. Loan candidates should be able to provide audited financial statements with notes for the past three years of operation.
  • Debt capital. Loan candidates should have a track record of raising and repaying debt capital.
  • Strong and seasoned management. We work with organizations that demonstrate continuity at the management level, typically with a CEO in place for at least 12+ months.

Investment Structure

Use of Funds

Loan capital, pre-development funding

Principal

Typically $1-5 million; loans are limited to 10% of applicant's total assets

Term

Typically one to five years

Interest Rates

Fixed rates are set in relation to Calvert Foundation cost of funds, varying with credit risk

Payments

Typically interest-only, semi-annual payments with a balloon payment at maturity

Collateral

Typically not required for general recourse obligations; often required for real estate related transactions

Application Process

  • Initial Request: Requests for funding are considered throughout the year, though Calvert Foundation's Investment Committee makes investment decisions quarterly. Applicants should submit:
    • A brief letter specifying the desired amount and intended use;
    • Your most recent annual report or other materials that have a general description of your organization and its programs;
    • Most recent audited financial statements (with notes).
  • Approval to Proceed with Underwriting the Request: Staff will review all requests and make a decision as to whether to move forward with the underwriting process or to decline the request.
  • Complete Application Requested and Underwriting Process: When a request is approved for further review, Calvert Foundation contacts the applicant regarding timing and next steps in the review process. The underwriting process is rigorous and requires an in-depth look at the applicant's organization. Review is timed to coincide with the applicant's receipt of an audited financial statement. Staff will provide a detailed list of items needed to complete the review. This list includes historical financial information, organization management, and program information. Our staff will develop a report for the Investment Committee based on the information provided and interviews with the organization.
  • Investment Committee Review and Decision: Final decisions are made by the Investment Committee or staff, depending on the size and risk of the transaction.
  • Loan Closing Process: Closing a loan is simple and quick. Standard legal documentation is completed and funds are wired directly to the organization's bank.
  • Quarterly Monitoring and Annual Reviews: Copies of a borrower's quarterly and annual financial reports are required throughout the term of the loan. Copies of the annual audit are also required and will be reviewed on an annual basis for each loan, for the term of the loan. Borrowers are required to submit social impact data at least annually. Organizations may be asked to submit additional information for the annual review process.
 
 

7315 Wisconsin Avenue  |  Suite 1000W  |  Bethesda, MD 20814
Phone: 800.248.0337  |  Fax: 301.280.6060  info@calvertfoundation.org