Not-for-Profit Organizations Lending
Not-for-profit organizations may find themselves pinched, especially in a down economy: trying to meet payments for general expenses while at the same time sustaining or even upgrading inadequate technologies or facilities.
Seedco Financial provides a variety of loans for such situations that not-for-profit organizations face, including:
Bridge or cash flow loan—This type of loan can help an organization respond to delays in contract payments or government funding, allowing expenses to be paid in the interim. While banks may make these loans, interest rates or underwriting standards may be prohibitive. Seedco Financial can provide more flexible, affordable loan terms.
Working capital loan—Many organizations face challenges in maintaining working capital for administrative and overhead costs. The need for working capital loans is especially strong in workforce development, youth development, and other human services, which tend to rely heavily on government funding that can be delayed.
Capital/equipment financing loan—Some not-for-profits lack funds to invest in technology, equipment, or facilities needed to keep their organizations and programs up to date. Seedco Financial can help overcome this obstacle with an affordable capital/equipment financing loan.
Ready to apply?
If you are interested in applying for a loan of $50,000 to $1.5M please download our Not-for-Profit Loan Application (Alabama, Louisiana, New York) and follow the instructions on the cover page.
Questions? Not sure if you qualify? Please complete our Loan Inquiry Form or contact us at: SFSInfo@seedco.org or call us toll-free at: 877.296.8878.
|
Operating History |
At least three years of operations |
|---|---|
|
Historical Revenue/Budget |
Annual operating budget of at least $200,000 in prior year |
|
Community/Economic Development Impact |
Emphasis on not‐for-profit organizations operating in the following sectors: Human/social services organizations (e.g., homeless services, childcare,senior care) Arts/culture organizations (Not-for-profits in other sectors will be considered on a case by case basis.) |
|
Other Requirements |
Legally incorporated as 501(c)(3) tax‐exempt organization |
|
Loan Type |
Term loans (lines of credit on a case-by‐case basis) |
|
Eligible Uses |
Equipment financing, facilities development, leasehold improvements, working capital |
|
Loan Size |
$50,000–$1,500,000 |
|
Loan Term |
6–60 months |
|
Interest Rate |
6–10% |
|
Application Fee |
$250 |
|
Closing Fee |
3.00% – 3.50% of loan amount |
|
Standard Collateral Requirements |
UCC‐1 filing on business assets |
|
Guaranty |
Third party guaranties |
