Ann Arbor Area Community Foundation offers loans to Washtenaw County nonprofits

ANN ARBOR, Mich. – The Ann Arbor Area Community Foundation is now offering loans up to $50,000 to Washtenaw County nonprofit organizations.

The Short-Term Cash Flow Loan Program offers local nonprofit organizations loans from $5,000 to $50,000 meant to meet the organization’s cash flow needs.

According to the AAACF website, the program was created as a “philanthropic response” to the economic impact on nonprofit organizations due to the COVID-19 pandemic.

Applications for the short-term loans are being accepted on a rolling basis.

Since mid-March, the community foundation has granted over $475,000 to Washtenaw County nonprofits. through its grant programs.

Here are the details

Loans are interest-free and are designed to help meet an organization’s needs for up to 180 days.

To be eligible for the program, an organization must:

• be a 501(c)3 nonprofit organization
• be based in or serve Washtenaw County

Loan repayment starts 90 days after the end of an organization’s cash flow period. An organization may take up to one year to repay its loan.

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Organizations are required to check in regularly with the Ann Arbor Area Community Foundation and will be required to write a one-page report summarizing how the loan impacted the organization.

Loans are approved based on a set of criteria determined by the AAACF. See eligibility criteria and rules for the program here.

Applying nonprofits must submit an application packet consisting of:

• an application
• an annual budget for the current fiscal year prior to the COVID-19 crisis
• projected budget and cash flow for the next year
• a recent audit or unaudited financials 
• a  Guidestar Financial Health Analysis Report (this will be retrieved by AAACF staff). 

Washtenaw County nonprofits interested in the program should email AAACF Senior Community Investment Officer Amina Iqbal at aiqbal@aaacf.org.