HOLLAND (WHTC-AM/FM) — The Community Foundation of the Holland/Zeeland Area (CFHZ) is launching a line-of-credit guarantee program.
This program allows tax-exempt, 501(c)(3) nonprofit organizations in the greater Holland/Zeeland Area, with a 2019 operating budget higher than $500,000, to apply for a CFHZ guaranteed line of credit established through West Michigan Community Bank.
These and other nonprofits have been seriously affected by the COVID-19 pandemic. Agency officials must contend with a rapidly increasing demand for services while experiencing significant losses of income. They’re making rapid, critical decisions without a full picture of what the next 3-12 months might hold, according to a CFHZ statement emailed to media
CFHZ’s line of credit guarantee relies on community endowment funds to support mid-to-large nonprofits serving the greater Holland/Zeeland area.
The main goals for the program include
- giving nonprofit partners quick access to capital
- providing source of adaptable working capital, which in turn allows nonprofits the time/flexibility to function at a higher capacity while navigating this time of increased need and decreased revenue
- easing the burden on nonprofit partners to access loan guarantee support.
“I don’t know if any of us anticipated this unique combination of deep public health, economic and basic needs issues arising so quickly all at the same time, with no sense of how long the challenges will last,” said Mike Goorhouse, CFHZ president. “The Community Foundation is doing our best to analyze the constantly changing environment so that we can best deploy our resources to make the most impact possible.”
The program has a cap of $2 million. CFHZ leaders say they anticipate being able to partner with an estimated 10-15 nonprofits. Lines of Credit limits will be up to $200,000 based on the nonprofit organizations 2019 budget and need.
Along with the line-of-credit, CFHZ will provide reimbursement to the nonprofit for all interest that the nonprofit has paid during the first two years. CFHZ officials expressed gratitude to program partner West Michigan Community Bank.
‘The line-of credit guarantee program is a combination of the ability for us to utilize the flexible assets of the Community’s Endowment to respond to the changing needs of our community and the ingenuity of CFHZ to provide innovative solutions to serve our community in its time of need,” said Leslie Brown, board chairperson for CFHZ as well as of Metal Flow Corporation.
Learn such details as eligibility and get an application form at cfhz.org/lineofcredit. Applications are due by Friday, April 24, 2020, or email Mike Goorhouse at mgoorhouse@cfhz.org.
