Access to Credit
Nonprofits have traditionally used credit to help manage cash flow.
A cash shortage can result from the timing of grant disbursements, contract reimbursements, and donations, as well as unanticipated expenses. Credit is a tool that helps organizations bridge these gaps.
Why Access to Credit Matters
Credit is especially crucial right now. The economic downturn has made the already delicate balancing act of nonprofit finance even more challenging. Donations, foundation grants, government contracts, and earned income make up the complex web of nonprofit financial support. This entire ecosystem has been impacted.
Credit can help organizations manage changes in their funding streams while continuing to deliver services.
Unfortunately, the same financial crisis is affecting traditional lenders. They are tightening their lending restrictions and conditions. The government is working to stabilize the financial markets, but in the interim credit remains very tight.
Nonprofit organizations are caught in a bind. They are struggling to keep pace with increased demands for service, fewer financial resources, and decreased access to credit.
Available Credit
Nonprofits Assistance Fund was established specifically to provide credit to Minnesota's nonprofit community. Our loan fund is a cornerstone of our mission. Where some traditional lenders may see nonprofits as a risk, we see an opportunity for collaboration and strengthening our community.
Financing is available to help nonprofits navigate challenges and take advantage of opportunities. Each loan is hand crafted by our loan officers - terms and conditions are flexible and realistic, they are designed for your organization.
Learn more about credit from Nonprofits Assistance Fund or contact us to begin a conversation about your financial goals.