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.

Did you know?

The Community Foundation is proud to sustain Northern Colorado Nonprofit Endowment Funds.

Nonprofit organizations establish endowment funds at the Community Foundation to extend their impact far into the future.

Did you know?

The Community Foundation is proud to sustain Northern Colorado Nonprofit Endowment Funds.

Nonprofit organizations establish endowment funds at the Community Foundation to extend their impact far into the future.

Anne Lance
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.”