Do you offer a nonprofit loan program?
We are interested in expanding services to the nonprofit sector. One way to do so would be to offer loans. We are interested in identifying any foundations, particularly community foundations, that offer a loan program for nonprofits. Do you? Do you know a foundation that does?
Thanks in advance for considering this request!
Tom
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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.
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Hi Tom,
Arizona Community Foundation has a community impact loan fund that has mostly been utilized for nonprofit affordable house development. Additionally, when I worked at Vitalyst Health Foundation in 2021, I supported the development of a Nonprofit Loan Navigator Workshop with the Arizona Alliance of Nonprofits. Community Development Financial Institutions (CDFIs) also provide all kinds of stacked/braided funding including lending which is available to nonprofits where philanthropy can extensively leverage their dollars by investing in their funds or working with them to disperse and provide technical assistance. CDFIs function as an intermediary funder with stacked funding (federal, state, philanthropic, CRA) for social impact organizations (often nonprofits) who are not well banked. As a consultant, I now work with LISC Phoenix and National (Local Initiatives Support Corporation) supporting the research and partnership development around child care facilities funds.
Happy to make connections or chat more.
Melanie Mitros
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Hi @TomWickersham. Our Foundation, Whitney Benefits, is an educational non-profit and we have an interest-free student loan program. I am the Student Loan Administrator for the program. You can view information about our loan program on our website, www.whitneybenefits.org. If you have any questions please feel free to reach out.
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Thanks for this information!!!
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