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Friday, January 19, 2018

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Nonprofit Loan Fund in Dallas
Around Texas

June, 2009

The Nonprofit Loan Fund provides nonprofits with a source of flexible funding to meet short-term financial needs.  When agencies have faced financial shortfalls due to delays in anticipated revenue or unplanned expenditures, the Loan Fund has been a resource to discuss options as well as provide loans.

The Nonprofit Loan Fund was established in 1987.  Since its inception, the Fund has made nearly 350 loans totaling more than $8.8 million to nonprofits throughout the State of Texas. Major contributors to the Nonprofit Loan Fund are The Meadows Foundation and The Houston Endowment, with additional support from several financial services companies.

To qualify for a loan, an organization must:

  • Be a 501(c)(3) organization, incorporated and operating in the state of Texas;
  • Have a Board of Directors with at least five unrelated members, and be empowered to borrow;
  • Be able to submit monthly financial statements and cash flow projections;
  • An applicant must be creditworthy, able to secure the loan and have a defined source of repayment for the loan.

Terms & Conditions for the Nonprofit Loan Fund:

  • Amount: Up to $60,000, not to exceed 10% of the borrower’s current annual operating budget.
  • Interest Rate: Determined at the time of loan approval, but generally between the prime rate and prime plus two percent (2%).
  • Maturity: One year or less. Repayment schedule is flexible, based on the borrower’s projected cash flow. Borrower must be able to demonstrate a defined source of repayment for the loan.
  • Collateral: Generally a first lien on cash and investments, contracts and accounts receivable and present and future contributions. Based on the Center’s analysis of the credit, the loan approval may require other or additional support.
  • Loan Administration Fee: Ranges from $150 - $1,400, payable only if the loan is approved. The amount of the fee is based on the size of the borrower’s operating budget, whether the borrower is a member of the Center and whether the loan request is on an emergency basis or not.

Learn more at


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