CHEFA Revolving Loan Fund Closes First Non-Client Loan
In March, CHEFA closed a $50,000 loan with Silvermine Guild of Artists, Inc. out of New Canaan, CT. This loan will enable Silvermine to purchase new tools and equipment for its various art studios, as well as update its telephone system. This is the first loan closed after CHEFA expanded its Revolving Loan Fund to include all 501(c)(3) organizations. Previously, only 501(c)(3) organizations who were existing borrowers of CHEFA-issued debt were eligible to apply for funding through the CHEFA Revolving Loan Fund.
The CHEFA Revolving Loan Fund program was created in 2020 with an initial funding of $1 million dollars from CHEFA’s operating reserves and has allowed CHEFA to provide affordable and flexible financing to nonprofits seeking to address their capital needs. Since its inception, CHEFA has closed over $800,000 in loans to a wide range of nonprofits across the state.
CHEFA is proud of its ability to provide financing to organizations and address critical capital needs. Loans such as those made to purchase vehicles for Meals on Wheels programs, critical medical equipment for endoscopic procedures and IT equipment for senior living centers have a significant impact on the lives that these organizations serve. These loans, and all other loans through the CHEFA Revolving Loan Fund program, have directly impacted over 14,000 Connecticut residents annually, 25% of which reside in low-income communities.
Funding is currently available for the 2023 loan cycle and any 501(c)(3) nonprofit organization is eligible to apply. CHEFA is offering loans up to $50,000 at 3.75% for 60 months under this program. CHEFA does not require any security for the loans and has a quick turnaround for disbursement (i.e., typically 45 days). Additional information regarding the Revolving Loan Fund and the application can be found here, or contact Dan Kurowski at dkurowski@chefa.com.
