Loans

We make loans to a wide range of nonprofits of different sizes and fields of service to strengthen and expand programs, manage cash flow, and finance real estate projects. For us, it is more than a loan. Nonprofits are unique. Mission, program mix, funding streams, and business models all impact what kind of loan will work best. Built on our knowledge of nonprofits and their business models, our lending team determines the best approach to meet your needs, and sticks with you to address challenges. From the beginning we sit on your side of the desk, and we will be your financial partner for the long haul. 

Loan Eligibility and Terms

Nonprofits Assistance Fund provides working capital and facilities loans to nonprofits in our region. Loans are available to nonprofits in all field of service including health care, community development, housing, charter schools and other educational organizations, social service agencies, environmental, and arts organizations.

Any 501(c)3 nonprofit organization in Minnesota  and adjacent communities, including Western Wisconsin, Northern Iowa, North Dakota and South Dakota, are eligible to apply. We require an operating history, and do not lend to start up organizations.

Basic Loan Types and Amounts

  • Working capital: Loans to support program and operational stability or program expansion including lines of credit for cyclical cash receipts or reimbursements.
    $20,000 to $1 million loans
  • Lines of credit: Flexibile financing to manage cyclical cash flow, such as to bridge the timing gap for receipt of a committed grant or contract.
    $20,000 to $1 million loans
  • Short-term facility projects: Facility loans used for building improvements, repairs, equipment purchases or to bridge to a capital campaign.
    $50,000 to $1.5 million loans.
  • Long-term facility mortgage: Flexible mortgages for building purchases, renovations or construction for up to 15 years. These loans are in partnership with IFF. Learn more here.
    $50,000 to $1.5 million loans.

Terms

Loans are structured to fit the organization’s business model, cash flow, and project plans. Loans are available for periods of a few months to seven years, and longer amortizations are available. Interest rates, collateral, and payment plans are suited to the project.  

Apply for a loan!

"I would encourage [nonprofit leaders] to create a relationship with NAF—regardless of whether they're currently looking at financial issues or not. They push you to think carefully about the bigger picture of your finances—and think more holistically and long-term about the sustainability of the organization.”

Joann Usher, Executive Director, Rainbow Health Initiative