Financing solutions for nonprofits

Monadnock Economic Development Corporation President Jack Dugan

Buying or renovating real estate or upgrading equipment can help a nonprofit organization reduce its overhead, expand programming and provide services more efficiently.

The Community Loan Fund provides loans to community nonprofits that serve low- and moderate-income or special-needs populations. Loan products are accessible and flexible. We will work with you to find a solution that works for your organization.

Loan features

  • Flexible loan terms up to 15 years (longer amortizations are possible)
  • Fixed rates
  • Reasonable loan fees
  • Flexible security or collateral requirements, including first and subordinate mortgage positions
Loan product Project uses Requirements
Pre-development - Engineering
- Design
- Feasibility studies
Available to nonprofits serving low- and moderate-income populations
Nonprofit facility acquisition/rehab - Land acquisition
- Building acquisition
- Building renovations
- Improvements/expansion
- ADA requirements
- Gap/bridge financing
Available to nonprofits serving low- and moderate-income populations
Energy efficiency Determined by available types of funding Determined by available types of funding
Equipment Capitalized equipment purchases such as:
- Furnishings
- Equipment
- Vehicles
Available to nonprofits serving low- and moderate-income populations
Working capital - Receivables/invoice
- State contracts
- Expansion
Available to nonprofits that can demonstrate repayment ability

Criteria

We assess loan requests using the following criteria:

  • Benefit to low-and moderate-income people or populations with special needs
  • Long-term benefit and social impact
  • Borrower’s ability to repay
  • Borrower strength
  • Leverage

Process

After the initial inquiry by a potential borrower, we help to assemble the material needed to evaluate the loan request. We also work closely with other lenders to match a project’s funding sources to its uses.

Once submitted, loans are analyzed and recommended to the Community Loan Fund’s Loan Review Committee. Decisions on most loan requests are made within a month. If this process creates a critical timing issue for the prospective borrower, we have an emergency process for accelerating decisions.