Eligibility Criteria

How do I know if my organization is eligible for a loan?

Loan candidates should meet the following criteria:*

Three years of operating experience. We do not typically lend to start-up organizations.
A solid base of net assets or net worth. As general recourse lenders, we look to an organization’s net assets or equity base as a possible source of repayment. Loan candidates should have sufficient equity available to cover their desired loan several times over.
Evidence of good operating performance. Loan candidates should demonstrate a minimum level of self-sufficiency by posting positive net income for the past two fiscal years.
Audited financial statements. Loan candidates should be able to provide audited financial statements with notes for the past three years of operation.
Debt capital. Loan candidates should have a track record of raising and repaying debt capital.

*Social Enterprise applicants should view the Social Enterprise Eligibility Criteria.

Investment Structure

Use of Funds	Loan capital, pre-development funding
Principal	$50,000 to $2.5 million; loans are limited to 10% of applicant's total assets
Term	Typically one to five years; loans are often recommended for renewal at maturity if borrowers have demonstrated good credit risk
Interest Rates	Fixed rates are set in relation to US Treasury rates, varying with credit risk but consistently below market
Payments	Typically interest-only, semi-annual payments with a balloon payment at maturity
Collateral	Typically none required; investments are structured as general recourse obligations