FAQ's

Does PCI provide insurance?
No. Although insurance companies contribute to PCI's loan fund, PCI does not provide insurance. For information about the contributing companies see Member Companies

Is there a minimum or maximum loan amount?
Yes. PCI's minimum loan amount is $500,000 and its maximum is $10,000,000.

How does PCI set its interest rates?
PCI does not link its interest rate to any index. PCI tries to keep its interest rates at or below the current market rate and provide sufficient income to support its operations. The type of loan and the level of risk will influence the interest rate.

When does PCI accept loan applications?
PCI accepts applications anytime. Final loan approvals occur at monthly Investment Committee meetings.

How quickly can I get a loan from PCI?
The loan approval process can take as little time as two weeks if all the information PCI needs is provided. The time from loan approval to closing depends on the complexity of the deal.

Can PCI lend outside Massachusetts?
No.

How did PCI establish the four loan categories?
The categories are set out in the state legislation passed in 1999 that enabled Massachusetts' insurance companies to establish the PCI loan fund.

Why doesn't PCI offer lines of credit?
The large volume of transactions that are typical with lines of credit would be impossible for PCI to process efficiently and accurately.

Why doesn't PCI offer 30 year mortgages?
The enabling state legislation established the life of the Fund at twenty-four years. Therefore, PCI cannot make loans that would extend beyond that time.

Does PCI lend to for profit as well as nonprofit entities?
Yes.

Does PCI require its loan to be in first lien position?
No. PCI prefers to be in first lien position, but will accept a subordinate position when it is a minor lender in the transaction and adequate collateral and debt service exist to support PCI's debt.

Will PCI participate with other lenders to finance a company or project?
Yes. PCI usually participates with other lenders, both public and private.