The fund will make loans, on a first-come-first-served basis, on the following terms:
- Maximum loan = $300,000
- 5, 10 or 15 year loan pay-back
- Low Interest (150 basis points over corresponding T-Bill, use 20 year T-Bill for 15 year pay-back) - call UMFREA for a rate quote
- Loan to Value of 90%
- Second lien position acceptable
- Borrower establishes priorities for work to be done
- Low closing costs
- Chapters are encouraged (but not required) to use the loan to leverage additional fundraising
- Borrowers are owners of properties occupied by a fraternity or sorority recognized by the University of Minnesota Office of Fraternity & Sorority Life
Borrowers must demonstrate an ability to repay the loan. UMFREA reserves the right to approve or reject all loans.