The Community Foundation of Northern Colorado established Impact Investing Loans to support nonprofits or government equivalents with low interest, short- to intermediate-term loans to address timing issues related to a variety of revenue streams, such as pledge receivables, payment of an approved government or foundation grant or contract, etc.
The Foundation will consider loans that have a high likelihood of returning invested capital and a financial return determined by the Foundation Impact Committee, which will depend upon the degree of financial risk.
The goals of the Impact Investing Loans are to:
- Support organizations’ missions by offering below market interest rate loans
- Expand access to debt financing
- Support new and existing projects in Northern Colorado
Impact Investing Loan Program Frequently Asked Questions
- Am I eligible to apply?
- Both registered nonprofits and government organizations are eligible to
- Criteria includes:
- A 3-year operating history as a 501(c)3 public charity or government equivalent.
- Annual operating budget of at least $500,000.
- Audited financial statements for the last three years.
- No prior loan defaults.
- In good standing with the IRS.
- Have an identifiable source of stable income or asset base for repaying the Foundation’s investment.
- The Foundation prefers to invest in entities with a prior history of repaying invested capital and/or entities led by a management team with such experience.
- No more than one outstanding loan from the Foundation at any one time.
- What are the typical parameters of the loan?
- Duration: Loans will generally call for payment in full within five year. However, the Foundation may extend duration on a case-by-case basis.
- Amount: Preferred loan amounts are between $50,000 and $350,000, and no borrower can make up more than 10% of the Program’s total allowable pool, unless approved by the Foundation’s Board of Trustees.
- Allocation: The Foundation does not seek to diversify across all asset classes; the allocation is driven by the underlying investment opportunities.
- Sources and Uses: It is required that a project has identifiable and approved/pledged source of funds to complete the project prior to the issuance of a loan.
- What is the maximum loan amount?
- Loans typically range from $50,000 and $350,000.
- What does the application process look like?
- First, you will be asked to submit a Letter of Intent (LOI) to provide initial information for the Foundation to assess the viability and fit of the project.
- If the organization is determined to be a viable candidate for a loan from the Community Foundation, its representatives will be invited to submit a full application.
- The Foundation will review the application, with consideration of the organization’s strength, community impact, and the organization’s ability to repay the loan.
- Organizations may have an opportunity to present their project to the Foundation. These presentations last around 20 minutes and are followed by a Q&A period.
- The Foundation will make every attempt to make a final decision within 45 days of receiving the full If the loan is not approved within 90 days for any reason, the applicant may be asked to submit updated materials.
- Applicants will be informed if the application has been approved or denied. If approved, the loan will enter the legal review and document preparation stages.
- Once loan terms are approved, the Foundation will prepare all necessary documents, including, but not limited to: Note and Security Agreement, Deed of Trust, Guarantees and Funds will be disbursed upon receipt of all required documents.
Contact the Community Foundation at (970) 224-3462 or info@nocofoundation.org with any questions.
Anne Lance | Executive Director, Teaching Tree Early Learning Center
“The nonprofit loan Teaching Tree received from the Community Foundation was instrumental in expanding our center from 6 to 12 classrooms. Our new classrooms have been full since opening! Being able to serve over 300 families per year reduced our waitlist, enabled families to work toward or maintain self-sufficiency, helped increase our tuition revenue, and allowed us to pay back the nonprofit loan two and a half years ahead of schedule. We’re so thankful for the Foundation’s support and for this amazing low-interest nonprofit loan program.”