Interim loans are short-term construction loans provided by the Trust to borrowers. These loans are meant to bridge the period between project approval from MassDEP and permanent financing, when the loan is put into repayment. These are an added value for Trust borrowers as they offer real time payment of project costs at no cost to the borrower.
Utilizing interim financing through the Trust simplifies project financing and avoids the additional fees and interest that a borrower would incur by going to the market for short term financing.
- 0% interest and no fees during interim financing
- A no-cost alternative to issuing an interest-bearing, Bond Anticipation Note (BAN)
- Borrowers can receive disbursements before a loan is permanently financed.
- Borrowers bond counsel would prepare the interim loan note and have it executed by the borrower, simpler than issuing debt to the public market.