Commerce RI

Mortgage Insurance

Mortgage insurance is offered through the Rhode Island Industrial Recreational Building Authority (IRBA). The maximum amount a business can borrow through this program is $5,000,000. The loan covers up to 90% on real estate, 80% of machinery and equipment, and 75% of tourist-travel recreation projects. Funds can be used for new building acquisitions, additions and rehabilitation of existing buildings and for new or used machinery and equipment. This program offers borrowers debt insurance on tax-free bonds, taxable bonds and conventional mortgages.

IRBA Purpose Statement

IRBA Mortgage Insurance Criteria

• Eligible Applicants: Manufacturing, processing, office, wholesale, retail and travel-tourist facilities.
• Dollar Limit per Project: Maximum $5 million
• Maximum Limit % of Project Cost: Real Estate: 90%, Machinery & Equipment: 80%, Tourist-Travel: 75%
• Approved Use of Funds: New building acquisition or, additions/rehabilitation of existing buildings. New or used machinery & equipment.
• Interest Rates: Bond Issues: fixed or floating, Mortgages: floating
• Term of Repayment: Normal terms for real estate: Maximum 25 years, Machinery & Equipment: Maximum 20 years
• Form of Financing: Debt insurance on tax-free bonds, taxable bonds and conventional mortgages.
• Application Fee: $1,250
• Commitment Fee: 1%
• Administrative Fee: 1-3%, on average annual outstanding principal balance.