FAQ Index
Loan Closing and Beyond
Once the Authority approves a loan, how long is the approval valid?
Generally, approvals are valid for six months and loans must close within that time period
How long do we have to complete a construction or renovation project after the loan closes?
All construction or renovation projects should generally be completed within one year after closing.
May a borrower begin construction or renovation prior to closing?
Construction or renovation projects should begin after the loan is closed.
What is the procedure for signing loan documents?
Once a loan is approved by the Authority, a loan package is provided to the borrower for preparation of the necessary closing documents. Upon completion of the closing documents, the loan package is returned to CHFFA at which time the closing process is initiated.
When will my first payment be due?
The first payment is generally due two months after the loan is closed.
What is Title and Escrow's role in the closing process?
Title and Escrow’s role in the closing process is to facilitate the communication between all interested parties. Title will provide the necessary documentation needed to record and close the loan. Escrow will establish an account to deposit the loan proceeds and disburse funds.
What are the reporting requirements after the loan is funded?
CHFFA requires a copy of the borrower’s audited financials no later than 150 days after the end of each fiscal year or as soon as it is available. Additionally, borrowers are required to maintain adequate property and business insurance for the life of the loan.
What if my organization plans to merge, consolidate or change its name?
The Authority requires advance notification of any such plans to merge, consolidate, change name or any other significant change in corporate existence.