"For a number of reasons, nonprofits often don't have traditional and short-term working capital tools available to them," said CHF vice president of philanthropy Kelly Dunkin. "This is particularly true in today's banking environment. The Loan Fund [will provide] borrowers [with] short-term loans in larger amounts and at an interest rate well below what traditional lenders offer."
New loan program for cash strapped health charities in Colorado
The Colorado Health Foundation is launching a $3 million loan fund to help its "safety net" grantees offset delayed Medicaid payments from local government. The fund will help grantees that have strong operating ratios, a diverse income stream, and a stable management structure. Charities that meet this threshold will be able to apply for loans ranging from $50,000 to $300,000. Organiaztions impacted by the Medicaid payment freeze will ge thteir loans in just one week. The program will be administered by NCB Capital Impact in Arlington, Virginia. They are structuring the 4 percent interest rate loans, which are renewable annually, like revolving lines of credit. The foundation will only serve as an investor and will not review or approve applications for the program.
