As a response to capital constraints caused by a lack of pre-funding sources of state and federal historic tax credits, Octagon Finance provides bridge loans to qualified developers of historic properties. Through this innovative lending agency, Octagon seeks to eliminate a gap in liquidity that often stifles tax-credit developers.
For historic rehab bridge loans, Octagon will advance funds at the approval of a Part II NPS historic rehabilitation application. Developers can apply for a maximum advance on the Federal Credit equal to 75% of the estimated final Federal Credit investment and a maximum advance on the State Credit equal to 75% of the estimated final State Credit investment. All loans will range from $1mm – $40mm, will have a maximum term of 36 months, and will be repaid by the equity investment of the State Tax Credit or the Federal Tax Credit Investor.