The Small Business Flex Fund is now open to nonprofits in Washington with fewer than 50 employees and annual revenue of less than $3 million. You can now apply for flexible loans of up to $150,000 to help you thrive and recover from the pandemic.
The Small Business Flex Fund is available to nonprofits in Washington state. (Other states may have similar loan programs.) The program allows your organization to access funds at very low interest rates and with long pay-back periods so your organization can bounce back stronger than ever. Here are the terms of the loans:
- Your organization can borrow up to $150,000
- 3% – 4.5% Interest rates (e.g. Interest on a $50,000, 6-year loan would be ~$4,700.)
- No fees and interest-only payments for the first year
- 60-month & 72-month loan terms
- 72-month loan term only available until December 31, 2021
- Your organization should have experienced economic hardship in 2020-2021 due to increased demand, lost revenues, or services you added to respond to community need
- You must have been in operation for one full year prior to June 30, 2021
How could you use a low-interest loan to advance your mission?
The money you receive can be spent flexibly, including on payroll, utilities and rent, supplies, marketing and advertising, building improvements or repairs, and other business expenses. Examples of organizations that should consider applying for a loan are nonprofits:
- Staffing up due to a program replication or expansion that meets a community need generated by COVID.
- Creating an earned revenue program or enterprise to recapture lost revenue.
- Expanding government contracts to meet current community needs. The loan would provide cash to cover operating costs on reimbursable contracts so you could train and pay staff, buy needed technology, or expand facilities prior to being paid under a reimburseable contract.
- Changing their service delivery model to remote/virtual but needing technology for staff and clients to make that work.
Watch this 30-second video that explains the Flex Fund:
Help is available
Request information from the Small Business Flex Fund if you have questions or need assistance completing your pre-application, or translation services. 501 Commons can also help you develop a plan for your use of loan funds, develop budgets, cash flow projection, and loan payment schedules. Fill our our Request for Assistance.
Important Note: The Small Business Flex Fund is NOT a forgivable loan. This program is not associated with the federal Paycheck Protection Program (PPP) or any other U.S. Small Business Administration (SBA) program. You will need to pay back the full amount of the loan with interest over a five or six-year term.