Collaborative NFP Loan Fund
Collaborative NFP Loan Fund
The collaborative NFP loan fund provides financial support to non-profit and charitable organizations that the COVID-19 pandemic has negatively impacted.
Line of Credit or Term Loan
Between $1,000-$20,000 established organizations
Fees and Interest Rates
Prime + 4%
Up to 3 years, with an option to pay the interest-only for up to 8 months
Financial statements and other essential supporting documents are required as part of the loan application. Please note that failure to submit ALL of the required documents listed will result in delays in processing your application. For the application package to be considered COMPLETE, you need to submit ALL of the following:
Non-profits with limited financial expertise are often hesitant to take loans and incur debt. However, the right credit solution can be a valuable tool to solve cyclical financial shortfalls and allow your organization to capitalize on key opportunities.
Operating Line of Credit
An operating line of credit (LOC) gives organizations access to funds within a set limit when and if they need them. LOC Interest rates are lower than most credit cards and some other credit solutions, and interest is only incurred on the funds taken out of the account. There is no fixed repayment schedule except for monthly fees and interest charges. The organization can pay down the LOC as their finances allow, and those funds can be reused as needed. A LOC's is most useful as a tool to smooth out an uneven cash cycle rather than to finance larger purchases. For example, a LOC could cover bill shortfalls (including payroll) in lean cash months.
A term loan is a set amount of money borrowed over a fixed period. The fixed period is called the term of the loan. Term loans are often used to finance large projects such as purchasing capital equipment, real estate, or fund renovations.
Opportunity costs are the potential benefits businesses miss when choosing one alternative over another. Because opportunity costs are unseen, they can be easily overlooked. Understanding the potential missed opportunities when a business decides on one project or path over another allows for better decision-making. It is fundamental to perform a cost-benefit analysis of a project or undertaking before accepting or rejecting the idea. Rejecting an idea based solely on the cost of the project without taking into account the opportunity that the project represents can negatively impact your organization's growth. Looking at the opportunity cost of each choice can help you find the most valuable opportunities for the long-term health of your organization.
The Ontario Non-Profit Corporations Act and the Canada Non-Profit Corporations Act regulate these issues. Typically, the organization's directors will not be liable, as it is assumed that they were acting in good faith and with reasonable skill and knowledge. Some may have purchased directors' and officers' liability insurance to help in a financial collapse. If they are found not to have acted in good faith, they can be held personally liable for the outstanding debts of the organization.
Your financial well-being comes first
Welcome to a better way to bank. Our knowledgeable team puts your financial well-being first with good, caring and transparent advice while offering all the products and services you need.