CIDC offers a range of programs and services across several market sectors. Below are the markets in which we are currently active and description of the consulting services and the current funding programs we are offering.
CURRENT ACTIVE MARKETS
BUSINESS AND FINANCIAL MODEL CONSULTING & ANALYSIS
If a client requires guidance developing a project’s financial model, CIDC may be engaged to consult on the financial design and structure of the project. By combining the various capabilities of our funding partners, CIDC is able to design a comprehensive funding model for commercial clients required by their real estate, business, or technology projects.
Our process begins with a preliminary analysis of the project to determine its viability and to make observations and recommendations to structure the project specifically to utilize our funding partner’s available mechanisms. We may suggest reordering project components to conform to known underwriting parameters, reducing or expanding the project’s scope and scale to maximize debt service coverage and equity improvements, detail required reserves and contingencies known in certain industries, and build a comprehensive proforma cash flow model that incorporates all of the above.
Often, we may introduce strategic additions to the project including 'green' energy components, new technology, or strategic partnerships with third-parties that create additional value, improve the project's viability, and ultimately mitigate risk to the developer and funding partners.
By structuring a project's capital requirements this way, we help to ensure the project achieves the goals of the client while also fitting it into a funding model designed by our experience, knowledge, and understanding of our partner’s funding capabilities.
CURRENT PROGRAMS
CIDC currently offers two primary programs: the CIDC Bond-Equity Program and the CIDC Full Bond Program. Projects that may find these programs most useful are large-scale, income-producing real estate development projects, technology research projects, business expansion projects, and other projects that involve a period of development resulting in a product, service, or facility, followed by a period of operation offering that result to the market. Projects worldwide, but with a significant U.S. interest, requiring between $50 million and $5 billion USD with a time frame of one to five years for development followed by three to twenty years of successful operation are ideal fits for these programs.
To qualify for either the CIDC Full Bond Program or the CIDC Bond-Equity Program, a project must meet one or more mandates of job-creation/retention, economic stimulus, reduction of demand on public resources, productivity enhancement, or infrastructure development. The project must also separately qualify for Private Activity Bond (PAB) through a legal bond counsel. Project Owners may procure the services of our partner company, KD International, as their bond consultant to navigate the PAB process.
The project must operate in one or more key sectors including alternative energy production, infrastructure and logistics, technology, manufacturing, resource acquisition, sanitation, agriculture, health care, education, affordable housing, retail, hospitality, or a combination of these and other industries. To sustain the social benefits it provides, the project must be viable, profitable, self-sufficient, stable, and secure. The project owners must be competent, in good standing, and have a demonstrable vested interest in the success of the project.
In these programs, projects are fully underwritten by their bond counsel and certified PAB underwriter. Project funding is administered by the bond trustee approved by all parties. Neither program involves any application, origination, underwriting, or other up-front fees. Funding partners and bond underwriters may require additional third-party professional reports and studies at the expense of the project owners.
CIDC Bond-Equity Program
The CIDC Bond-Equity Program allows our funding partners to fund socially beneficial commercial projects through a combination of Private Activity Bonds and a minority equity position in the project companies. This long-term funding solution gives each project the greatest opportunity for success by maximizing funding available and minimizing debt service costs during development without impeding the project team’s expertise and interest in the project.
CIDC Full Bond Program
The CIDC Full Bond Program provides a project’s funding fully utilizing Private Activity Bonds (PABs) issued by the Project Company and purchased by our funding partners. This Program minimizes the project’s cost of funding and simplifies exit options upon project completion. The CIDC Full Bond Program is ideal for projects in which the owners have significant equity already invested.
Bridge / Private BAN / Gap Funding
For projects that require short-term funding while pursuing our other funding models, bridge, private bond-anticipation-note, and gap funding solutions may be available through our funding partners. CIDC can devise a custom financial model that incorporates short-term funding into the overall project funding requirement.
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Commercial International Development Corporation is not a financial services company, investment advisor, investor, nor lending institution. Nothing in this document is a solicitation of investment or borrowing, nor does CIDC provide investment or financial advice of any kind. No part of the program guarantees any investment return, potential for investment return, or debt or equity financing. CIDC is acting as an intermediary facilitating contact between its established network of known individual funding partners and its network of project owners. CIDC only provides consulting on the business and financial models of commercial development projects by analyzing a project’s plan, proforma, and supporting documentation. The decision whether to fund a project lies solely with the funding partner and partner’s counsel, and the decision whether to accept funding lies solely with the project owners and their counsel.
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