Cash Flow Loan Program Case Studies
Additional Information
Guidelines and How to Apply
The Meyer Cash Flow Loan Program makes short-term (30 to 180 days) cash flow loans of up to $75,000 against fully approved government contracts and foundation or corporate grants. The loans are made on a first-come, first-served basis from a revolving fund of $1 million.Primer for Nonprofit Organizations
In our experience, nonprofits excel at providing excellent programs that bring critical services to people in need. Because of the extraordinary demands on their time and energy, they don't always give their business practices and systems the attention they deserve. A significant number of nonprofits, for example, do not take advantage of a valuable tool that can help them better understand and manage their finances -- the cash flow forecast.Reporting and Evaluation
The Meyer Foundation requests and appreciates feedback from nonprofits that use the Cash Flow Loan Program. Download the reporting and self-evaluation form here.A Meyer cash flow loan helped bridge a gap for the Latino Economic Development Corporation. The group faced a cash flow problem while waiting for the DC Control Board to release funds allocated to the group by the US Department of Housing and Urban Development. Thanks to a $50,000 Meyer loan, the group kept its projects running smoothly until the government monies were released. The organization had repaid the loan by year's end.
DC Central Kitchen ran into a similar cash flow problem when it contracted with the U.S. Department of Agriculture to run a summer meal program for children from low-income families. The problem was that the Agriculture Department could not advance money to the group for such expenses as coolers for storing children's milk. It could only reimburse DC Central Kitchen after expenses were incurred. The group asked Meyer for help in early June; the Foundation responded quickly with a $50,000 loan. DC Central Kitchen repaid the loan after being reimbursed by the USDA. Nonprofits say that the cash flow loans can be lifesavers.
For the DC Coalition Against Domestic Violence the loan allowed the group to establish a credit history.
For the Center for Multicultural Human Services loans enabled the group to continue to pay its staff without interruption. While the organization made substantial imprints in its internal financial management systems. "It's hard on morale to inform hard-working staff that their paychecks will be delayed because of cash flow problems," said Dennis Hunt, the Center's executive director.
The Foundation for Educational Innovation nearly had to postpone the start of work on a new technology training center in southwest DC when a grant from the DC Department of Housing and Community Development (DHCD) was delayed. A $75,000 cash flow loan from Meyer enabled FEI to continue its work on DC Link and Learn, a center that provides computer and telecommunications training for District residents by linking community-based, public school, and university resources. At the time FEI approached Meyer for the loan, work on the center could not begin without DHCD funds. "Without support from the cash flow loan program, I would not have been able to keep my team intact," said Archie Prioleau, FEI's president, who came to the cash flow loan program twice to keep the DC Link and Learn Project on track.
Comments from Previous Loan Applicants
"Your program allowed our organization to establish a repayment history."
"The cost of the loan was very low...In addition, we received the check very quickly."
"Loan staff understands the applicant's cash flow problems and helps the organizations through the loan process in a supportive way."
"Turn around time from application to disbursement was amazingly fast."
"Developing the cash flow projection chart was a very good process for evaluating our financial status and needs. We are now using cash flow projections as a regular internal management tool."
"This loan program is a wonderful idea. I felt that the experience has generated a feeling of partnership between us and the Meyer Foundation. This is a very healthy and productive way to relate to community organizations that often feel they are facing overwhelming challenges alone."