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Home  >  Loan Funds

Nonprofit Loan Funds
The Nonprofit Loan Funds provide nonprofits with a source of flexible funding to meet short-term financial needs.  

ELIGIBILITY - To qualify for a loan, an organization must:

  • Be a 501(c)(3) organization, incorporated and operating in the state of Texas;
  • Have a Board of Directors with at least five unrelated members, and be empowered to borrow;
  • Be able to submit monthly financial statements and cash flow projections;
  • An applicant must be creditworthy, able to secure the loan and have a defined source of repayment for the loan.

LOAN FUNDS - There are three funds available:
Depending on your needs, your organization may or may not qualify for a particular fund.

1. ARRA Loan Fund - Terms & Conditions:
The ARRA Loan Fund provides working capital loans to nonprofits receiving federal grants under the American Recovery and Reinvestment Act (ARRA) and and the Housing and Economic Recovery Act (HERA).  These funds are necessary to assist agencies that are challenged with the reimbursement nature and/or timing of stimulus grants.

  • Amount: Based on program needs, capped at $150,000.
  • Interest Rate: Determined at the time of loan approval, but generally between 1% and 4%.
  • Maturity: Repayable in full upon receipt of reimbursement funds.
  • Collateral: Secured by ARRA and/or HERA grant.
  • Loan Administration Fee: No Fee.

2.  Community Response Loan Fund - Terms & Conditions:
Thanks to funding from The Meadows Foundation, the Center is offering loans for agencies affected by recent economic conditions. 

  • Amount: Up to $75,000.
  • Interest Rate: Determined at the time of loan approval, but generally between 0% and 3%.
  • Maturity: Up to 4 years. Repayment schedule is flexible, based on the borrower’s projected cash flow.
  • Collateral: Unsecured.
  • Loan Administration Fee: No Fee.

3.  Short-Term Nonprofit Loan Fund - Terms & Conditions:

  • Amount: Up to $60,000, not to exceed 10% of the borrower’s current annual operating budget.
  • Interest Rate: Determined at the time of loan approval, but generally between the prime rate and prime plus two percent (2%).
  • Maturity: One year or less. Repayment schedule is flexible, based on the borrower’s projected cash flow. Borrower must be able to demonstrate a defined source of repayment for the loan.
  • Collateral: Generally a first lien on cash and investments, contracts and accounts receivable and present and future contributions. Based on the Center’s analysis of the credit, the loan approval may require other or additional support.
  • Loan Administration Fee: Ranges from $150 - $1,400, payable only if the loan is approved. The amount of the fee is based on the size of the borrower’s operating budget, whether the borrower is a member of the Center and whether the loan request is on an emergency basis or not.

HOW TO APPLY:  Application Process
Before submitting a formal application, please complete the Pre-Qualification Scan.

Loan requests are reviewed and approved by the Nonprofit Loan Committee, which meets monthly.

For more information about the Nonprofit Loan Fund, contact Ryan Smith, Associate Director of Financial Services, at smith@cnmdallas.org or 214/826-3470, ext. 248.

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Center for Nonprofit Management, 2902 Floyd Street, Dallas, Texas 75204
tel: 214.826.3470 . email: info@cnmdallas.org