The Agency Loan Fund (ALF)
The unique FJC Agency Loan Fund (ALF) provides secured loans to credit qualified charitable organizations in furtherance of their charitable missions. Often these organizations have limited access to other credit sources. The loans are made at a floating interest rate of the prime rate plus three percent. There are generally no fees to the borrower or pre-payment penalties.
The loans are frequently made to provide bridge financing for agencies awaiting government and other funding and to address short-term needs. Some of the loans have helped finance the establishment of group homes for the disabled, classes for special needs children, programs at community centers for the aged, adult literacy programs, the purchase of public radio and television stations, and capital projects.
Charitable organizations wishing to be considered for a loan begin the process by submitting an FJC Loan Application together with certain financial and other information about the organization. Decisions about whether to provide a loan are made by FJC’s Loan Committee. The Committee generally meets with a loan applicant’s representatives to review the application, including the organization’s financial statements, staff and board of directors, description of available collateral, and to discuss the structure of the potential loan. Applicants must be able to demonstrate that:
The ALF is offered as an investment option to FJC’s donors. The net return on the ALF is credited to FJC accounts that select this investment option and will ultimately be directed through donor recommended grants to worthwhile charitable organizations. The return varies with changes in market interest rates and utilization ratios.
The interest earned by the ALF is credited to the donors’ accounts, thereby increasing the funds available for grants. FJC manages the liquidity of the ALF to ensure that accounts invested in the ALF are available for grants at any time.
Since FJC began making loans to nonprofits in 1995, it has advanced loans to more than 200 different charitable agencies for a total principal amount of approximately $200 million.
The Green Building Loan Fund (GBLF)
FJC’s Green Building Loan Fund (GBLF) was established to encourage non-profit organizations to reduce their use of fossil fuels. Through the GBLF, FJC will provide five-year loans to credit qualified organizations for projects that increase fuel efficiency in all forms including heating, cooling, electrical use and transportation. The GBLF will also provide funds for renewable energy projects including solar electric, solar water heating, wind turbines and geothermal heating systems.