Loans Overview - Nonprofit Finance Fund
Loans Overview - Nonprofit Finance Fund
Loans Overview - Nonprofit Finance Fund
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®<br />
Where Money<br />
Meets Mission ®<br />
For 30 years, <strong>Nonprofit</strong> <strong>Finance</strong> <strong>Fund</strong> (NFF) has connected finance to nonprofit success, particularly in<br />
underserved communities, by providing access to capital, creative financing, and advice, while advocating<br />
for change. We’ve lent and leveraged over $1.3 billion in financing, and each year we touch more than 1,000<br />
organizations nationwide. To learn more, visit us online at nonprofitfinancefund.org.<br />
Year1<br />
What We Do<br />
NFF is a full service CDFI. In addition to the wide range<br />
of loan products and financing reflected below, we provide<br />
technical assistance and broad research on nonprofits.<br />
Who We Serve<br />
NFF serves the whole nonprofit sector. All kinds of<br />
nonprofits and social enterprises working to sustain their<br />
communities can find help at NFF.<br />
Equipment<br />
Growth<br />
Bridge<br />
Facilities<br />
NMTC<br />
Cash Flow<br />
Series1<br />
Human<br />
Series2<br />
Services<br />
Series3<br />
Series4<br />
Series5<br />
Series6<br />
Research Series7 &<br />
Advocacy<br />
Series8<br />
Youth &<br />
Education<br />
Arts &<br />
Culture<br />
Health<br />
Care<br />
Environment<br />
How We Partner<br />
How We Help<br />
NFF works closely with CDFIs, banks, foundations, and<br />
government agencies across the country to come up with<br />
financing solutions for nonprofits in need. Ways we’ve worked<br />
together include:<br />
Co-lending<br />
Purchasing loans or participations<br />
PRI and MRI services<br />
Grantee support integrating consulting with financing<br />
Incentive programs to build reserves<br />
Underwriting services<br />
Growth campaign support<br />
“...Our line of credit with NFF<br />
enables us to operate all our<br />
programs at maximum capacity with<br />
confidence and without interruption.<br />
Thanks to NFF, The Food Trust is able<br />
to provide nutrition education to over<br />
50,000 low-income children, operate<br />
26 farmers’ markets, and bring more<br />
stores selling healthy, fresh food to<br />
impoverished neighborhoods in the<br />
Philadelphia region.”<br />
Daniel Rawleigh, Director of <strong>Finance</strong><br />
and Administration, The Food Trust<br />
Where You’ll Find Us<br />
Northeast<br />
New York: NY@nffusa.org<br />
New Jersey: NJ@nffusa.org<br />
Boston: NE@nffusa.org<br />
Mid-Atlantic<br />
Philadelphia: Philadelphia@nffusa.org<br />
DC MD VA: DC@nffusa.org<br />
Midwest<br />
Detroit: Detroit@nffusa.org<br />
Western Region<br />
San Francisco: SF@nffusa.org<br />
LA: LA@nffusa.org<br />
©2011, <strong>Nonprofit</strong> <strong>Finance</strong> <strong>Fund</strong> ® nonprofitfinancefund.org twitter.com/nff_news facebook.com/nonprofitfinancefund
®<br />
<strong>Loans</strong> and<br />
Financial Services<br />
<strong>Nonprofit</strong>s are the cornerstones of our communities, providing vital services that address our most pressing social<br />
problems. With their varied business models and unique operating environments, nonprofits need a lending partner that<br />
can appreciate their particular situation and provide innovative, customized solutions. Since 1980, <strong>Nonprofit</strong> <strong>Finance</strong><br />
<strong>Fund</strong> (NFF) has lent over $235 million and provided over $130 million in New Markets Tax Credit financing to nonprofits,<br />
leveraging $1.3 billion of capital investment on behalf of our clients. Our financing helps nonprofits manage growth, build<br />
and renovate facilities, balance government contract payments and cash flow, and bridge capital campaigns so they can<br />
better serve their communities. We also partner with funders to structure philanthropic capital and program-related<br />
investments and manage capital for guided investment in programs.<br />
Typical <strong>Nonprofit</strong> Loan Clients<br />
Our typical clients are financially equipped to use debt as a<br />
strategic tool. We consider applications from organizations that<br />
meet the following criteria:<br />
• In existence for 3 years or more<br />
• Unrestricted annual operating revenue of at least $500,000<br />
• A 501(c)(3) organization or other entity which promotes the<br />
economic, social and cultural development of its community.<br />
NFF lenders also evaluate smaller nonprofits and social<br />
enterprises on a case-by-case basis.<br />
<strong>Nonprofit</strong> Financing Options<br />
<strong>Loans</strong><br />
NFF provides flexible, tailored loans to individual clients based<br />
on their unique financial story, plans and capacity. <strong>Loans</strong><br />
typically range between $100,000 and $2.5 million and are used<br />
for the following purposes:<br />
Facility <strong>Loans</strong><br />
• Acquisition<br />
• Construction, renovation and leasehold improvement<br />
• Related soft costs, such as professional fees and permits<br />
• Relocation costs<br />
Working Capital <strong>Loans</strong><br />
• Bridging capital campaign receipts, grants, government<br />
contracts, and other receivables<br />
• Lines of credit to support temporary cash flow needs<br />
• Program expansion<br />
Equipment <strong>Loans</strong><br />
• Office equipment and furniture<br />
• Computer hardware and software<br />
• HVAC and security systems<br />
• Other program- and facility-related equipment<br />
New Markets Tax Credit (NMTC) Program<br />
NFF has received $151 million of NMTC allocation so<br />
far, which we use to attract private capital and finance<br />
nonprofits and community facilities. NMTC-related<br />
loans are available for projects over $5 million that may<br />
involve acquisition, substantial renovations, leasehold<br />
improvements, or new construction of community spaces<br />
such as charter schools, health clinics, community centers,<br />
arts & cultural spaces, and others.<br />
Delivering PRIs and MRIs for <strong>Fund</strong>ers<br />
<strong>Fund</strong>ers are increasingly considering modified, low-interest<br />
lending programs such as Program-Related Investments (PRIs)<br />
and Mission-Related Investments (MRIs), as supplements<br />
to their traditional grantmaking practices. For foundations<br />
considering these two kinds of investments, NFF provides<br />
underwriting, structuring and portfolio management services<br />
that enhance the efficiency and impact of the program.<br />
NFF can also give seasoned, knowledgeable advice and services<br />
to organizations that already have these programs in place.<br />
We tailor a plan to best fit the size and scope of both lending<br />
programs and individual investments. Our services include:<br />
• Analysis and underwriting investments for working capital,<br />
growth and facilities development<br />
• Preparation and presentation of investment recommendations<br />
• Loan closing and documentation services<br />
• Monitoring of loans throughout their term<br />
• Billing and collection services on foundations’ behalf<br />
• Reporting on efficacy of overall investment portfolio and<br />
individual investments<br />
Visit us at nonprofitfinancefund.org<br />
©2011, <strong>Nonprofit</strong> <strong>Finance</strong> <strong>Fund</strong> ®<br />
<strong>Nonprofit</strong> <strong>Finance</strong> <strong>Fund</strong> (NFF) works to strengthen the nonprofit sector, particularly<br />
in underserved communities, through broader access to capital, creative financing,<br />
changes in funding practices, stronger financial management and education.
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