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@TrinaFrandsen & @DeborahMueller - Don't quote me, but I believe this is already an Idea Lab suggestion. Feel free to vote it up there, or add your own specific suggestion. In the meantime, there are a few other discussions here in Compass that might be helpful.

Kara

Community Manager

@DeborahMueller Of course our legal and financial advisor team reviewed and approved the process. I work for a Bank, where security is our highest priority.

Hello Minal,

Our Foundation moved to electronic Grant Agreements and ACH authorizations last year. After each application is approved the applicant is assigned a follow up, requesting that they submit both forms electronically in order for funds to be disbursed. This way, should they change Banks or designated accounts, they can provide that information directly to us on the form for each grant awarded. This information remains attached to their application. I have attached a copy of these forms here. Let me know if you have any questions.

Hi Tom,

The community foundation I'm with, Pinellas Community Foundation (PCF), has done a loan program before, though it was in partnership with a local private foundation and a 501c4 that was already doing loans. PCF was in the process of distributing funding from the CARES Act, and grants were paid on a reimbursement basis for organizations if they fell below a certain threshold of risk as determined through federal guidance; this of course made it difficult for organizations to get started on expanded programming.

The local foundation (Foundation for a Healthy St. Petersburg) put up $2 million in default-proof, zero-interest/free loan funding and granted it to the Tampa Bay Black Investment Corporation, which already had loan operations in place for local businesses. PCF also provided funds to the Investment Corporation to help support the operation of the loan fund. As organizations spent the loan funding, PCF then reimbursed them as they reported to us on expenditures, and the organizations then used that to repay the loan. 100% of loans were repaid fully.

Although the CARES program ended in early 2021, the loan fund has now been made permanent at Foundation for a Healthy St. Petersburg: https://healthystpete.foundation/how-we-support/race-equity-loan-fund/ PCF no longer plays a part in it, but it worked phenomenally.

I'm certain you could do the loan funding in-house; however, we did not have the capacity to do so, and found partnerships served everyone more.

Would be happy to provide more guidance and/or refer you to additional people if interested.