ANN ARBOR, Mich. – The Ann Arbor Area Community Foundation is now offering loans up to $50,000 to Washtenaw County nonprofit organizations.
The Short-Term Cash Flow Loan Program offers local nonprofit organizations loans from $5,000 to $50,000 meant to meet the organization’s cash flow needs.
According to the AAACF website, the program was created as a “philanthropic response” to the economic impact on nonprofit organizations due to the COVID-19 pandemic.
Applications for the short-term loans are being accepted on a rolling basis.
Since mid-March, the community foundation has granted over $475,000 to Washtenaw County nonprofits. through its grant programs.
This week, we launched the new Short-Term Cash Flow Loan Program! Washtenaw County nonprofits can apply for interest-free loans of $5K-$50K to help with their cash flow needs. With our grants, this program is part of our response to the COVID-19 crisis.https://t.co/Apm0UZWJIP— Ann Arbor Area CF (@AAACF) April 3, 2020
Here are the details
Loans are interest-free and are designed to help meet an organization’s needs for up to 180 days.
To be eligible for the program, an organization must:
- be a 501(c)3 nonprofit organization
- be based in or serve Washtenaw County
Loan repayment starts 90 days after the end of an organization’s cash flow period. An organization may take up to one year to repay its loan.
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Organizations are required to check in regularly with the Ann Arbor Area Community Foundation and will be required to write a one-page report summarizing how the loan impacted the organization.
Applying nonprofits must submit an application packet consisting of:
- an application
- an annual budget for the current fiscal year prior to the COVID-19 crisis
- projected budget and cash flow for the next year
- a recent audit or unaudited financials
- a Guidestar Financial Health Analysis Report (this will be retrieved by AAACF staff).
Washtenaw County nonprofits interested in the program should email AAACF Senior Community Investment Officer Amina Iqbal at firstname.lastname@example.org.