PCG’s $600,000 loan is the first loan funded under a new GAP loan program. The program was partially funded with a CDFI grant with the purpose of enabling partnerships with CDFI banks that face more stringent regulatory requirements, particularly loan-to-value constraints.

109-111 W. Lexington Street, LLC requested a $1,800,000 loan to rehabilitate a blighted building in the downtown Baltimore corridor which will provide affordable housing to residents in the city. The Harbor Bank of Maryland offered to fund $1,200,000, leaving a $600,000 gap. PCG providing $600,000 subordinate debt financing.

Borrower, a minority-led developer, has successfully rehabilitated and transformed several properties in Baltimore, Maryland. The subject rehabilitation and redevelopment include developing 15 multi-family units and one ground-floor retail unit. The development is located in a low-income area of Baltimore with a 21.2% poverty rate, 7.9% unemployment rate, and in an area where more than 49.7% of the city’s population earns less than $50,000. The project will employ, whenever possible, minority-owned, and operated subcontractors.