The Metro Denver Nonprofit Loan Fund, a joint effort of the Community First Foundation, the Denver Foundation and the Rose Community Foundation, debuted with $3.2 million in initial investments. The new fund will boost Denver-region nonprofits affected by the COVID-19 pandemic by providing technical assistance and zero-interest loans.
The loans might be in the form of working capital term loans or bridge financing. They are geared toward mitigating interruptions in revenue flow during the current crisis. Organizations led by or which primarily serve Black, Indigenous, people of color and women will receive priority consideration.
“Local nonprofits, especially those serving the communities hardest hit by the pandemic, are vital to our region’s recovery,” Kelly Dunkin, president and CEO of Community First Foundation, said via a statement. “The Metro Denver Nonprofit Loan Fund will provide financial and technical assistance to strengthen specific nonprofit organizations, and the nonprofit sector more broadly, so that impacted communities not only recover but thrive.”
Each of the initial partners provided a $1 million investment, with an additional $200,000 through from the Colorado Nonprofit Loan Fund. The Metro Denver Nonprofit Loan Fund will be managed by the Nonprofit Finance Fund.
“This Fund will help dozens of organizations, primarily from underfunded communities, employ a financial resource that institutional barriers may otherwise bar them from accessing,” Javier Alberto Soto, president and CEO of The Denver Foundation, said via a statement. “While the Fund is starting out with $3.2 million, we are hopeful that additional funders will join us as well.”
Loan amounts range between $50,000 and $250,000, with recipients having up to 48 months to repay them. Additionally, recipients will not be required to make any payments within the first year. Eligible nonprofit candidates include 501(c)(3) nonprofits located in the seven-county Denver metro area or those with an endowment through Community First Foundation, Rose Community Foundation or The Denver Foundation. Applicants will need to demonstrate financial need, show that a loan is the appropriate mechanism for meeting that need, have organizational budgets between $500,000 and $5 million and provide reasonable assurances of repayment.
Initial applications will be processed through Jan. 8. Applications for the loans are available here: https://bit.ly/3gfoRN6