Emergency Loan Fund

upcoming application deadlines

• July 17, 2008 for consideration in August
• August 14, 2008 for consideration in September
• September 11, 2008 for consideration in October

About the Fund

The Emergency Loan Fund (ELF) which is a collaborative program of Northern California Grantmakers, a regional association of grantmakers.

The purpose of the Emergency Loan Fund is to provide quick-turnaround, short-term, low-cost financial assistance to San Francisco Bay Area nonprofits.

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

Eligibility

Loans are available to nonprofit organizations located in: Alameda, Contra Costa, Marin, San Mateo, and San Francisco counties. All types of nonprofit organizations are eligible to apply (except arts organizations that are eligible for the Arts Loan Fund). Projects can include support for a variety of purposes. Applicants must be 501(c) 3 nonprofit organizations with a minimum operating history of two years. 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.

Organizations with Lines of Credit

The ELF does not make loans to organizations with an available line of credit. However, if your organization has completely drawn down your line of credit, then an application may be considered.

Loan Program

The ELF provides Secured Loans up to $50,000. As of May 1, 2004 all loans are subject to 3% interest. Applicants are required to show a verifiable source of committed funds that will be used to repay the loan, such as grants or contracts confirmed in writing or verbally by granting/contracting officer, but not yet paid.

Loans are short-term in nature and must be repaid when the committed funds are received, generally within six months. The Emergency Loan Fund approves loans depending on both the need and circumstances of the applicant and the availability of funds.

Technical Assistance Grants

Technical Assistance grants are only available for organizations that apply for loans. Optional mini-grant technical assistance is designed to enable the organization to build financial capacity and infrastructure, so that it is less likely to need ongoing assistance. Technical assistance grants cannot be applied for separately from a loan. Mini-grants are awarded up to $5,000 for areas such as:

• Funding leadership attendance at financial management and development-related workshops, focusing on revenue enhancement, financial controls/systems, and/or expense-reduction.
• Contracting with consultants for financial management and development assessment and advice.
• Full or partial payment of a critical audit.
• Purchase and implementation of financial management software/training

Note: The Emergency Loan Fund is under no obligation to provide a technical assistance grant when it approves a loan.

ELF History and Leadership

The Northern California Grantmakers' Emergency Loan Fund started in 1973 in response to the demonstrated cash flow needs of arts organizations. The Emergency Loan Fund is designed to help nonprofits whose services are in jeopardy due to cash-flow problems created by delays in the contracting or payment schedules of public and private funding sources and the absence of a substantial cash reserve. Financial assistance is in the form of a short-term, no-interest loan. A technical assistance grant add-on option for building financial infrastructure is also available.

In three decades of service to the Bay Area community, the ELF has made approximately 1,271 low-interest loans totaling $29,540,700 and 264 grants totaling $1,354,500. It approved nine loans and two technical assistance grants totaling $338,000 in 2007.

The ELF is independently funded by its members, which include foundations and corporations. The ELF 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 the nonprofit sector.

The Emergency Loan Fund (ELF), is led by Nima Krodel of the Nonprofit Finance Fund and Linda Moll of the Rosenberg Foundation.

To Apply for a Loan

Download the application and required attachment documents. All loans 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, ELF staff are available to answer any questions.

Deadline for Applications

All applications received by the second Thursday of each month are forwarded to the ELF Steering Committee for review. However, applications are accepted on a continuous basis and there are no fees to apply.

Timeline for Review

The ELF Steering Committee meets on the first 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 ELF Loans is 3%.

After the Loan is Approved

Each applicant is called shortly after the monthly meeting and informed of the ELF 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.