While grant funding and donations may be the more common avenues for financially supporting a non-profit, there are times when non-profits may desire to seek loans to support cash flow, finance a project, or purchase real estate, equipment, or other items.  Although they play an essential role in our communities, non-profits often face challenges when it comes to securing loans.

Common sticking points for non-profits when applying for loans:

• Unpredictable income: Because non-profits often depend on donations and grants, their income can fluctuate widely from year to year or over the term of a loan.
  
• Ineligibility for common loan programs: Non-profits are often excluded from common government business lending programs.  For example, with rare exception non-profits are ineligible for SBA loan programs.  This greatly shrinks the pool of available loan programs and lenders as the lack of government guarantees increases the risk for banks and other lenders. 
• Lack of collateral: Much like their for-profit counterparts, smaller/newer non-profits often do not have assets to pledge as collateral, such as real estate or equipment.  In some cases where collateral is available, it may be special purpose and have limited options for resale in the case of a loan default. This lack of collateral can make more difficult for non-profits to get approved for loans.  Finally, the possibility of having to foreclose on a non-profit in the case of a loan default can result in undesirable negative publicity for a lender.

Our staff can help your non-profit overcome these challenges by:

• Accessing lenders that specialize in non-profit lending:  No need to shop your request to lenders who don’t lend to non-profits or have little interest in operating in this space.  Out network of lenders includes those that actively work with non-profits.

• Understanding the needs of non-profits: Financing for non-profits can bring unique challenges to the lending process.  By understanding the needs of your organization and the lending process as it relates to non-profit financing, we’re able to position your request for the best likelihood of success.
• Negotiating better terms:  We strive to secure financing on your behalf, with terms acceptable to you and your organization.  With over a decade of experience in the lending space, we have the knowledge and skills to negotiate the best terms on your behalf.
• Providing guidance and support: Bizgocio staff provides guidance and support to your organization throughout the loan process, helping you to understand the loan process, prepare, and to make informed decisions about your loan options.