Nonprofit Loan Program

Program Overview

The Community Foundation of Northern Colorado established its nonprofit loan program in 2017 to provide loan financing for nonprofit organizations that are located in, and serving the residents of, Northern Colorado and the Eastern Plains of Colorado. Loan funding is intended primarily to assist the nonprofit with timing issues surrounding pledge receivables, payment of an approved government or foundation contract, or some other verifiable form of repayment.

application process

We encourage all applicants to read the below description fully, as well as the expanded attachments, before beginning the loan application process.

Loans are available to nonprofit organizations that are both located in and aiding the residents of Northern Colorado and the Eastern Plains of Colorado. Generally, applicants should be able to meet these criteria before submitting the Letter of Intent and Loan Application:

  • A 3-year operating history as a 501(c ) 3 pubic charity
  • Annual operating budget of at least $500,000
  • Audited financial statements for the last three years
  • No prior loan defaults

Preferred loans primarily consist of capital projects, equipment funding, or other programming needs that have easily identifiable sources and uses of funds.

The parameters surrounding the criteria for the loan program include, but are not limited to, the following:

  • Impact: The Program will consist solely of investments that further the Foundation’s mission, which is to inspire and unify the communities we serve. The Foundation will generally make strategic investments where its capital is key and/or catalytic to success.
  • Duration: Loans will generally call for payment in full within five years. However, the Committee may extend duration on a case-by-case basis.
  • Amount: Preferred loan amounts are between $50,000 and $350,000.

Collateral is required for all loans issued. Eligible collateral includes: real estate, assignment of pledges, assignment of deposit accounts and/or Donor Advised Funds, and general equipment.

Click here for more information regarding investment criteria, parameters, eligibility, collateral, loan terms, interest rates, preferred loans, and fees.

Step 1: Letter of Intent

Eligible organizations that wish to apply to the Nonprofit Loan Program must submit a Letter of Intent (LOI). The purpose of the LOI is for the nonprofit to provide brief documentation to show the viability of the project and the organization’s ability to carry debt. If it is determined that the organization would be a viable candidate for the Nonprofit Loan Program, its representatives will be invited to submit a full application.

Step 2: Full Application

Organizations that are invited to complete a full application will do so online. The application will require the organization to provide the following:

  1. Detailed description of the project.
  2. Detailed description of the project’s cost and funding sources. Please also include 
    a completed Budget Template (click here to download), as well as the Income Breakdown Worksheet (click here to download).
  3. Detailed description of the strength of the organization and the current financial position.

For a full description of all necessary documents and parts, please download the attached document.

click here to apply

Step 3: Presentation

Organizations may have an opportunity to present their project to the Nonprofit Loan Program Committee (“the Committee”). Presentations should last no longer than 20 minutes, and an additional 20 minutes will be available for Q & A.

Step 4: Review Process

The Committee meets on a monthly basis and will review your application at the next gathering. When the Committee reviews applications, it will consider the strength of the organization as outlined in step 2 section c above, the community impact of the project, and the organization’s ability to repay the loan. The Committee will make every attempt to make its recommendation to the Executive Committee, or request additional information, within 45 days of receiving a full application.

For a detailed rubric used in the review process, please see the attached document.

Step 5: Approval or Denial

The Committee will submit funding recommendations to the Executive Committee. Upon approval by the Executive Committee, applicants will be notified, and the loan will enter the legal review and the document preparation stages.

Step 6: Final Acceptance and Loan Closing

Once the loan terms are approved by the Executive Committee, the Community Foundation staff will prepare all necessary documents, including, but not limited to, Note and Security Agreement, Deed of Trust, Guarantees and Assignments. Funds are disbursed upon receipt of all required documents. Loans are administered by the Foundation’s Accounting Department with the support of the Vice President for Community Engagement.

CURRENT NONPROFIT LOAN program OPPORTUNITIES

Our first nonprofit loan program will allow local nonprofit No Barriers USA to build a field campus in Red Feather Lakes to host youth summer camps, expeditions for veterans, and retreats for a variety of the constituents the organization serves. Click here to learn more about this specific loan program opportunity.