The Nonprofit Loan Fund helps nonprofit organizations in our 23-county service area meet short-term funding needs by providing bridge loans. Building upon the success of the Arts Loan Fund, The Community Foundation is expanding loans to stabilize the funding of nonprofit organizations.
The Loan Fund allows organizations to weather times of short-term cash crunches, seize immediate growth opportunities that require some investment or maintain steady operations while waiting for pledged public or private grant funds or contracts. Because of its year-round accessibility and quick underwriting process, the Loan Fund serves as a valuable source of alternative short-term financing for organizations that typically juggle cyclical grant payments.
The Community Foundation conducted a feasibility study in 2009 to determine the needs within the nonprofit sector. Through this study we discovered:
- 50% of nonprofit organizations had a budget shortfall
- 82% of these were due to timing (money was supposed to come in but didn’t)
- 70% of nonprofit organizations indicated they may borrow if loans were available
- 65% of nonprofit organizations do not have a vibrant, stable banking relationship
There is a clear need to help nonprofit organizations not only secure short-term funding but also to create healthy banking relationships. At The Community Foundation, we are committed to strengthening nonprofits in our region, and by making these connections between banks and nonprofits, we are increasing the financial sustainability of nonprofit organizations.
Working directly with our Loan Fund administrator, nonprofit organizations are led through the full application process. Nonprofit organizations with operating budgets between $250,000 and $3,000,000 with a 3-year history as a 501(c)3 are eligible to apply for short-term loans of $10,000 to $50,000. Organizations must be located in our 23-county Metro Atlanta service area.
- Each applicant is required to secure its loan with a verifiable source of funds for repayment.
- Loans have a maximum term of 12 months and offer market interest rates, typically prime plus 2.0%.
The Nonprofit Loan Fund operates on a rolling deadline. Applications to the Loan Fund are evaluated as they are received. In most cases, applicants will be notified of a loan decision within two weeks of submitting a complete application package.
Workshop and Orientation Sessions
Nonprofits interested in applying for loans through the Loan Fund are strongly encouraged to attend an upcoming workshop/orientation session.
(September 23, 2013: At this time, there are no scheduled workshops. Please check back or join The Community Foundation's email list to be notified when the next session is scheduled.)
Important Application Documents
Sample Application Documents
Cash Flow Projection Worksheet
An important part of the Nonprofit Loan Fund application process is creating a cash flow projection worksheet. Please see video below for a recorded presentation.
Click here to access video.
To include a knowledgeable and broad perspective in this work, the Nonprofit Loan Fund is guided by an Advisory Committee of members who have direct banking and lending expertise, as well as nonprofit leaders who understand nonprofit management and trends affecting the nonprofit sector. The committee provides consultation, input and perspective on the Nonprofit Loan Fund application process and overall program progress.
- Lynn Wentworth, Chair, Corporate Board Member
- Candace Bell, SunTrust Bank
- Christie Brown, The Community Foundation for Greater Atlanta
- KC George, National Development Council
- D.R. Grimes, Where2Bank
- Ellen Macht, Community Volunteer
- Kristen L. McCollum, United Way of Metropolitan Atlanta
- Clare S. Richie, Georgia Budget and Policy Institute
- Kathy Duncan, State Bank & Trust Company
Josh Phillipson, program associate
Loan capital for the Nonprofit Loan Fund is provided by The Community Foundation’s capital, as well as two donors who have provided capital for loan guarantees. Operations of the Loan Fund are supported by six generous Atlanta bank sponsors. We are grateful for their shared interest in strengthening our region’s nonprofits.