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Nonprofit Loam Program 11_k2 Loans fog°SN(C)( ) Business Ventures As an integral part of our work to create a resilient nonprofit sector, the Initiative Foundation pro- vides financing up to $50,000 to eligible nonprofit organizations for the creation or expansion of mission-related earned-income/social enterprise activities. Loan proceeds may be used for working capital, equipment acquisition and/or facility improvements for earned-income/social enterprise activities, which are clearly defined in a written business plan. Loans are available to eligible nonprofit organizations of different sizes and fields of service includ- ing, but not limited to: community development, human services, health care, housing, education, environmental, arts and humanities. Eligibility Any 501(c)(3) nonprofit organization in the Initiative Foundation's 14-county service area is eligible to apply. The focus of the program is to provide financing to nonprofit organizations creating or expanding mission-related social enterprise/earned income ventures. PROGRAM LEKDZNG GUMELMES > ' +onprofit loans: Amounts up to $50,000. The term/amortization, -- loan covenants, reporting and insurance requirements and other matters are determined on a case-by-case basis. Generally, the interest rate ranges from 2 to 4 percent, fixed. BORROWER RESPONSTS UTIES a The collateral for a loan will generally consist of a The borrower must cooperate with the security interest in all business assets or Initiative Foundation as follows: real estate of the borrower, and may be Information sharing Borrower agrees to in a first or second position. Guarantees provide financial and other information to will generally not be required; however, the the Foundation from which the Foundation organization's board members may have a can make a credit determination. Legal liability per state statute. Iptoyw, -1t reF Borrower agrees The borrower will pay a to complete an employment report one percent origination fee, plus other at inception of the loan and annual third-party expenses for documentation, employment surveys by Dec. 31 each year, recording, etc. for the term of the loan. Lending decisions Borrower agrees to generally are made within five to 10 comply with the Foundation's request business days from the date the Initiative for financial statements and/or progress Foundation receives the application and all reports time to time and at least annually, supporting materials. for the term of the loan. For more information, contact, if Dan Bullert i�ilt� t� � Business Finance Manager F n nit 7 i r (877) 632-9255 I dbullert@ifound.org ifout'l+d,org 1 (877)632-9255 1 405 First Street SE I Little Fars, MN 56345 EgLWOPPWI.ity Lender,P,—Id,,aid Employer