The Nonprofits Insurance Alliance of California (NIAC) has started a small loan fund available for loans of up to $50,000 to its California members. The loans are secured only by the nonprofit’s assets.
NIAC’s long-term goal is to prove it is financially feasible to underwrite small, yet impactful, loans to the nonprofit sector, without requiring guarantees from individual executives or board members, according to Pamela Davis, founder and president of NIAC. The organization has $1 million available for loans in the state.
The organization’s research suggests that the market does not offer loans of this size at market-based interest to financially secure nonprofits. And, if loans are offered to organizations, the processing time takes up to one year.
“NIAC believes that prompt access to small loans could improve nonprofits’ ability to serve their communities and increase their overall effectiveness,” said Davis. “NIAC’s goal is to prove to funders, financial institutions, the government sector, and others that making small loans to credit worthy nonprofits is both financially viable and the right thing to do.
For more information email Nloan@insurancefornonprofits.org