Cash Flow Loan Program Guidelines and How to Apply
Related Documents
 | 2007 Cash Flow Loan Application |
Additional Information
Case Studies
Read examples of Meyer grantees who have used Meyer's Cash Flow Loan Program in the past.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.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.
Nonprofits that have received Meyer grants in the past four years are eligible.
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.
Criteria for Approval
- The existence of 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.
Application Process
Step 1: Mail two copies of your completed cash flow loan application with all of the requested attachments to the Cash Flow Loan Program. The application form can be downloaded directly from our site.
Step 2: Loan program staff will review the application, contact the funding agency responsible for the contract or grant against which the cash flow loan will be made, and may request a meeting with the organization's board chair and executive director.
Step 3: Loan program staff will notify the executive director of the loan decision, and, if the loan is approved, the amount and repayment date of the loan.
Step 4: An officer of the board and the executive director will sign a loan agreement letter and a demand promissory note. Upon receipt of these counter-signed documents, staff will release the loan funds.
For more information, please contact Nick Turner at 202-483-8294 or nturner@meyerfdn.org.