Information for Borrowers
Lending Criteria of the Equity Trust Fund
Equity Trust Fund makes loans that further our mission to promote equity in the world by changing the way people think about and hold property.
Within that purpose, we make loans that:
- Assist in the permanent protection of land and/or buildings for agriculture, affordable housing, community economic development or other community need.
- Support the economic vitality of CSA farms or the economic success of projects protecting the affordability and use of land and/or buildings for community benefit.
- Directly or indirectly enable land reform and promote alternative ownership models.
Loan requests for acquisition of land or conservation easements, capital improvements, construction, equipment, predevelopment, refinancing, and working capital are all eligible. Priority is given to loans where primary beneficiaries are low or moderate income individuals or communities; projects that create permanent affordability; community-based, grassroots projects; and non-profit borrowers. Collateral is normally required.
Equity Trust Fund loans are typically between $5,000 and $150,000 and we generally offer interest rates of between 5% and 7%. When a project requires more than $200,000, the Equity Trust Fund normally prefers to participate in conjunction with other lenders.
Loan terms can be for up to five years. Once the loan fund has received a complete borrower application, the staff and loan committee is typically able to approve and issue a loan within a month. The Equity Trust Fund charges a loan initiation fee of $200, or 1% of the value of the loan, whichever is larger.