Arts Loan Fund

upcoming application deadlines

• June 26, 2008 for consideration in July
• July 31, 2008 for consideration in August
• August 28, 2008 for consideration in September
• September 25, 2008 for consideration in October

About the Fund

The Arts Loan Fund (ALF) is a collaborative program of the Northern California Grantmakers, a regional association of grantmakers.

The purpose of the Arts Loan Fund is to provide quick-turnaround, low-cost financial assistance to San Francisco Bay Area arts organizations.

The ALF is not designed to replace contributed or earned income, but to help organizations manage their cash flow needs. All loans must be repaid within twelve months of receiving the loan with the exception of opportunity loans. There must be a three month "rest period" between repayment of a loan and consideration of a new request by the ALF.

Eligibility

Loans are available to arts organizations located in Alameda, Contra Costa, Marin, Monterey, San Mateo, San Francisco, Santa Clara, Santa Cruz and Sonoma counties, and individual artists located in the cities of Oakland and San Francisco. The types of arts organizations and artists that are eligible to apply include: arts education, dance, folk and traditional arts, literary arts, media arts: film/radio/television, multidisciplinary, museums, music, musical theatre, opera, presenting, theatre, and visual arts (note: these categories are as defined by the National Endowment for the Arts). Projects can include support for a variety of purposes even parades, video/film and festivals. Applicants must be 501(c) 3 nonprofit organizations or individual artists. However, an organization may use a fiscal sponsor to share financial responsibility for a loan. If you are using a fiscal sponsor, the fiscal sponsor's financial statements must be included.

Loan Program

The ALF provides five types of loans:

1. Secured loan: collateralized by a government contract, grant or other guaranteed income. Loans are available up to $50,000 (average size loan is $20,000-25,000) for a maximum of 12 months. Pledges from individuals cannot be used as collateral.
2. Benefit or Performance loan: secured with benefit proceeds or box office returns. Loans are available up to $20,000.
   • The agency has two years of experience in putting on a similar benefit or performance.
   • The agency has an active board that participates in planning and implementing fundraising activities.
   • There is a fully developed plan for the benefit or performance that includes costs, projected income, location, performers and publicity.
   • The cash flow statements indicate that the loan can be repaid from the gross proceeds.
   • The agency should estimate box office/number of anticipated attendees.
   • The loan must be repaid within six months.
3. Opportunity loan: for new revenue streams or cost-saving opportunities. Loans are available up to $30,000 for a maximum of 24 months.
4. Quick Qualifier loan: for small financial needs secured with a government contract, grant or guaranteed income. Loans are available up to $5,000.
5. Individual Artist loan: for artists who have secured a current grant from either the San Francisco Arts Commission or the Oakland Cultural Funding Program for their work. Loans are available up to $5,000

ALF History and Leadership

The Northern California Grantmakers' Arts Loan Fund was started in 1981 in response to the demonstrated cash flow needs of arts organizations. While large nonprofit institutions and businesses can use commercial lenders, community arts groups generally cannot draw upon such resources or may pay high interest rates to do so. The ALF works to fill this gap and to provide a useful financial tool for small and mid-sized arts organizations. From 1981 until the end of 2007, the ALF provided 1,211 loans totaling $14,836,200. In 2007, the ALF approved 26 loans totaling $633,200.

The ALF has a relationship with both the San Francisco Grants For The Arts and Oakland Cultural Arts Program whereby the ALF advances monies to arts groups receiving grants and these programs repay the ALF upon receipt of invoices and receipts from the arts groups.

The ALF is independently funded by its members, which include foundations, corporations and San Francisco's Grants for the Arts program. The ALF Steering Committee sets policy, develops programs, and makes decisions on loan applications with recommendations provided by staff. They also share and learn about trends in arts and culture funding.

The Arts Loan Fund is co-led by Ted Russell, Senior Program Officer at the James Irvine Foundation and Marc Vogl, Program Officer at the William and Flora Hewlett Foundation.

To Apply for a Loan

Download the application and required attachment documents. All loans except the Quick Qualifier require a monthly cash-flow forecast, which covers the period of the loan and extends three months beyond the final repayment date. If you need help in completing your application, ALF staff are available to answer any questions.

Deadlines for Applications

Applications are due on the final Thursday of the month by 5pm. There is no application fee.

Timeline for Review

All applications received by the final Thursday of each month are forwarded to the ALF Steering Committee for review. The ALF Steering Committee meets on the third Thursday of each month. Organizations will be informed of the Committee's decision shortly after the Committee meeting. Loan funds are usually available to applicants two business days after the Committee meeting.

Interest Rate

The interest rate on all ALF Loans is 1% below the prime lending rate up to a maximum of 6%.

After the Loan is Approved

Each applicant is called shortly after the monthly meeting and informed of the ALF Committee's decision. If the loan is approved, the organization's Executive Director and an officer of the Board of Directors sign a promissory note obligating the organization to repay the loan with interest, at which point funds are disbursed.

Staff Contact

If you have any questions about the NCG Loan Funds, please contact Susanne Ross, NCG Program Officer at 415.777.4111 ext 27 or at sross@ncg.org.