Non-Profit Revolving Loan Fund

Download Application

Terms and Conditions
WHAT: A revolving loan fund designed to assist 501(c)(3) Non Profits manage short term cash flow needs and/or assist in site improvements and purchase of capital equipment.

WHERE: Applicants located in Hartford and the 29 town capitol region (see application for a listing of towns).
ELIGIBLE ACTIVITIES: With a primary focus on short-term cash flow needs, the Fund will entertain requests for the following:

1. Short term cash flow loans to help an agency in the period between commencement of a contract and payment from funders.
2. Working capital to cover costs until an anticipated source of revenue becomes available (e.g., the proceeds from a special event)
3. Equipment purchases such as computers, copy machines, telephone systems, furniture and fixtures, etc.
4. Leasehold improvements to space leased by a nonprofit where alternatives such as landlord-sponsored improvements are not an option, and where the need for reduced-cost financing is compelling.

TYPES OF LOANS: Direct Loans.

LOAN AMOUNT: Loans vary up to $75,000.

MINIMUM INTEREST RATE: 4 percent fixed rate.

TERM: Typically 1 - 4 years
GUIDELINES:

1. The applicant must be a 501(c)(3) organization in good standing with the Internal Revenue Service and the State of Connecticut and normally must have an operating budget of under $8,000,000.
2. The applicant must have a demonstrated track record of providing beneficial service to the community, with such benefit being maintained or enhanced by the loan being requested.
3. Loans will only be made to cover short-term cash flow, working capital, leasehold improvement, and/or machinery and equipment financing needs of the applicant.  Loans will not be made to fund deficits or operating losses of the applicant.
4. Interest charged for the loan will normally be 4%, or as otherwise mutually agreed upon.
5. Loans will be made only to organizations that operate in the Greater Hartford Region and whose projected activities would be eligible for a grant from the Hartford Foundation for Public Giving.
6. Normally the applicant should be unable to obtain conventional financing conveniently and at an affordable rate of interest.

The Loan Approval Process
The Loan Approval process consists of several steps designed to obtain necessary information for the diligent review of the project under consideration. Outlined below are the major steps of the process:

1. Review the loan fund guidelines.
2. Download a copy of the application.
3. Return completed application and additional information to the Greater Hartford Business Development Center, Inc., 15 Lewis Street, Suite 204, Hartford, CT 06103.
4. Loan requested are presented, discussed and approved on a monthly basis by a Loan Committee and ratified by the Board of Directors. The Committee may vary terms when exceptional circumstances dictate.

.