SERCAP Programs – Loan Fund
Individual Household Well Loans – SERCAP’s Individual Well Loans are low interest 1% loans that can be applied for by residents of rural communities with population under 25,000 for up to $11,000 to cover the cost of digging a new well or repairing an existing well. Individual Household Well Loans address the needs of SERCAP’s certified target market by offering low-interest loans to low-to-moderate income individuals and families in rural communities to refurbish or drill new household water well systems. Often our loan applicants are unable to gain low-interest financing that fits their budgets and income from traditional financial institutions. SERCAP is able to provide our target population with loans carrying a 1% interest rate to work on water well systems. SERCAP also utilizes an ‘ability to pay’ option that allows SERCAP and the homeowner to evaluate their current financial status and income to determine a realistic monthly payment in order to re-pay the loan without putting stress on their monthly household budget and minimizing the applicants at-risk for default.
Individual Household Septic Loans – SERCAP’s Individual Septic loans can be applied for by residents of rural communities for up to $6,000 for a new standard or alternative septic system. Interest rates will range from 2% to 4% based on MHI. Individual Household Septic Loans are unavailable from other lending institutions. SERCAP is not aware of any other loan programs that provides septic loans to low-to-moderate income individuals. SERCAP’s interest rates are 2% to 4% in this category.
*Currently SERCAP’s Individual Household Septic Loans are Only Available in Delaware and Virginia.
Home Improvement Loans – The home improvement loans offered by SERCAP’s Loan Fund department allow rural residents to apply for loans of up to $6,000 for small home improvement projects such as replacing faulty HVAC units and installing handicap infrastructures. Interest rates will range from 2% to 4% based on MHI. Home Improvement Loans are typically unavailable at affordable terms from traditional lending institutions in our certified target market. For instance, BB&T Bank offers Home Improvement Loans at 12% interest. SERCAP provides these loans at an affordable 2% to 4% interest rate. In addition, SERCAP accepts a lower credit score of 640 to increase borrower eligibility.
*Currently SERCAP’s Home Improvement Loans are Only Available in Delaware and Virginia.
Community Development Loans – SERCAP’s Community Development Loans can be applied for by local governments, non-profit agencies, user associations or other community entities for up to $150,000 towards the construction or development of a project to benefit the entire community. For example funds can be sought for the building of a new water treatment plant, to cover laterals for a new affordable / low-income housing development, or other public community projects. Currently we provide gap financing as projects often exceed our 150,000 cap in their total cost. We frequently receive loan requests of up to $400,000 and intend to use CDFI funds to serve those loan requests through an increased maximum loan amount. Interest rates range from 3% to 7%. Community Development Loans are offered by SERCAP because generally borrowers are not able to obtain affordable pre-development loan or gap financing loans to finance their projects. Pre-development loans, for preliminary engineering reports, soil or water testing, and acquisition loans are rarely offered through traditional finance institutions. For that reason, SERCAP offers these loans at the affordable interest rate of 3% to 7% coupled with alternative repayment structures such as deferred interest for up to one year or interest only payment options.