The Working Capital Loan Fund will provide small- and medium-sized arts and culture organizations that are MacArthur Foundation grantees the means to address cash flow shortages and form long-term banking relationships.
The objectives of the Fund are to:
- Provide a financing mechanism to address the short-term cash flow needs of MacArthur Foundation’s small and mid-sized arts and culture grantees;
- Improve financial awareness and management by deepening grantees’ understanding of cash management tools and organizational budget cycles;
- Help grantees build institutional credit history, so that they may develop future, independent relationships with commercial lenders.
Loan products available
The program will make available two types of loans:
- A standard line of credit with monthly interest payments and one-year terms. Loans will range in size from $50,000-$100,000 and the interest rate is Prime with a ceiling of 5%.
- One-time cash flow “bridge” loans with monthly interest payments and 6 month terms. Loans will range in size from $25,000-$50,000 and the interest rate is Prime with a ceiling of 5%.
Applicants to the Fund must:
- Be a current general operating support grantee of the Foundation’s arts and culture program, either directly or through one of the MacArthur Funds at the Prince Charitable Trusts or the Richard H. Driehaus Foundation, and
- Have an annual expense budget in its last fiscal year between $250,000 and $3 million at the time of its loan application.
How to apply
- To apply for a loan through the Fund, a representative of each grantee organization should directly contact Executive Service Corps of Chicago, which has a team of consultants available to help each organization start the loan application process.
- Applicants should NOT contact ShoreBank or the MacArthur Foundation directly for loans through this program.
- Executive Service Corps of Chicago will both assess your organization’s readiness to take on such a loan and help you prepare the needed financial documents to apply for the loan through ShoreBank.
Contact John Donaker, Executive Service Corps of Chicago Project Manager at 312.580.1840 ext. 331 or firstname.lastname@example.org
The Fund has been established through a partnership among the following organizations:
- The John D. and Catherine T. MacArthur Foundation supports institutions committed to building a more just, verdant, and peaceful world. In addition to supporting the arts in Chicago, the Foundation works to defend human rights, advance global conservation and security, make cities better places, and understand how technology is affecting children and society.
- The Executive Service Corps of Chicago offers experienced and trained volunteer consultants dedicated to strengthening nonprofit organizations across the greater Chicago area by bringing leadership, management and governance skills that are critical to the growth and sustainability of the nonprofit sector. Founded in 1978, the Executive Service Corps serves 160 clients annually and is the largest nonprofit provider of management consulting services in the Chicago area. For more information about ESC, visit www.esc-chicago.org.
- ShoreBank is the nation’s first and leading community development and environmental banking corporation, committed to building vibrant communities and a healthy environment – its “triple bottom line.” With $2.3 billion in assets, ShoreBank is among the largest community development banks in the nation. For additional information, visit www.sbk.com.