The Cincinnati Development Fund (CDF) recently unveiled its nonprofit facilities and equipment loan program designed to help nonprofits obtain affordable long-term loans in order to renovate, maintain and improve existing facilities. The program is made possible through a partnership with IFF and a $ 1.4 million grant from the JP Morgan Chase Foundation.
“The program enables nonprofits to continue to invest in their core missions while also meeting critical facilities and equipment needs,” says Debbie Koo, loan officer for CDF.
Loan amounts in the nonprofit loan program can range from $ 50,000 to more than $ 1.5 million, providing flexible capital for nonprofits that might not be able to get financing through traditional lenders. An appraisal isn’t required, and CDF can advance up to 95 percent of the project cost.
Nonprofits can use the loans for capital projects (acquisition, construction, renovation, leasehold improvements or refinancing); maintenance and improvements (roof repair, new windows, ADA code repairs or HVAC); and capitalized equipment purchases (computer hardware/software, furnishings, medical equipment or service-oriented vehicles).
To date, CDF has made loans to Findlay Market for its new incubator kitchen and to Kennedy Heights Art Center. With interest growing in the new program, several other projects are currently in the works.
“CDF is focused on revitalizing neighborhoods, which includes providing support for the people who live and work in those communities,” Koo says. “With this program, we are able to expand our reach beyond residential and mixed-use developments to include nonprofit facilities and equipment.
“If we can help improve a nonprofit’s cash flow by providing low-interest, long-term financing, that leaves them more money to invest in their missions. If more nonprofits own their own real estate, they can build equity and strengthen their balance sheets.”