Cash Flow Loans
Nonprofits, like businesses and individuals, need enough cash on hand to meet operating expenses. The Foundation recognizes that maintaining adequate cash flow can be a challenge for many nonprofits, particularly those that deliver services under reimbursable government contracts.
The Foundation established its Cash Flow Loan Program in 1995 to help grantees continue to deliver services and pay their employees when grants or contracts have been awarded but payment has been delayed.
Through the Cash Flow Loan Program, the Foundation makes short-term (30-to 180- day) cash loans of up to $75,000 against approved government contracts and approved grants from foundations or other sources of private funding. The loans are made on a first-come, first-served basis from a revolving fund of $1 million.
Loans are interest-free but carry a two percent (2%) service charge that is deducted when the loan is made. If the loan is repaid in full within 90 days, half of the service charge is refunded. For loans repaid within 30 days, three-quarters of the service charge is refunded. Loan recipients who have honored the terms of the loan agreement may return to the loan fund for additional loans.
Eligibility
To be eligible for a cash flow loan, your organization must have ALL of the following:
- Received a Meyer grant in the past four years.
- A legally binding contract currently in effect that is not at risk for defunding or nonpayment, a written grant commitment, or another legally binding receivable;
- The ability to repay as evidenced by the organization's overall financial health and its projected cash flow for the repayment period; and
- The financial management record of the board and executive director and their commitment to timely repayment.
Additional Information
For more details about the Cash Flow Loan Program, please read about the application process and the Frequently Asked Questions.
