Guidelines

The Colorado Nonprofit Loan Fund was created as a public/private partnership in 1981 to provide short-term bridge loans to Colorado-based, tax-exempt 501 (c) (3) organizations experiencing a cash flow problem of a timing nature only. On May 1, 1992, The Denver Foundation assumed management responsibilities of the Fund.

Qualifications:

1. The applicant must be Colorado-based, providing services primarily within the state, be incorporated and have current status under sections 501 (c) (3) and 509 (a) of the Internal Revenue Code and apply loan proceeds to section 170 (c) (2) (b) charitable activities. A parent organization may make application but will incur liability for the loan payment.

2. Services provided must be related to agency's tax-exempt purpose but be nonreligious in nature. (Please contact the Loan Manager if you have any questions.)

3. The organization's cash flow problem must be of a timing nature only.

4. The applicant must not have defaulted on a previous loan from CNLF.

5. The applicant must demonstrate that it has made an effort to identify other loan/funding sources.

6. The organization must not be a political action committee.


Other Factors We Consider:

In addition to evaluating each loan request on a financial basis, the Fund may also evaluate these factors for each loan request:

- Does the organization demonstrate sound fiscal management practices?

- Will the proposed loan strengthen the applicant’s ability to carry out its mission effectively or efficiently?

- Does the organization address the root causes of or help to prevent a community-wide problem or otherwise enhance the quality of community life?


Repayment Sources:

• Most desirable confirmable sources include foundation/corporation grants, contracts and governmental funding.

• The next acceptable are historically successful earned income projects and fundraising. The less definite and confirmable the repayment sources, the less likely the loan is to be approved.

Fees:

• There is a $25 application fee, which must accompany the application, and a $100 loan origination fee which must be paid to the Colorado Nonprofit Loan Fund at the time of the loan closing.

CERTIFICATE OF GOOD STANDING

Please include a copy of a Certificate of Good Standing with the state of Colorado with your application packet. A certificate may be obtained by calling the Secretary of State's office at 894-2251. It takes two to three working days to process a request, and your organization will be billed a $5.00 handling charge by the State. If you wish to pick up the certificate, you should instruct the operator, and the office will call you when the certificate is ready. The Secretary of State's Office is located at 1560 Broadway in Denver.

If your loan request is approved, a recent Certificate of Good Standing will be required in order to formalize the loan process.