Free Loan Line of Credit (FL-LOC)
The Boston Free Loan Society (aka FFFLF*) is offering line of credit loans to smaller 501(c)(3) charitable organizations, who make interest-free loans to help people in critical temporary financial distress to become or remain self-supporting. The recipient organization will directly identify loan candidates, screen applications, and originate, disburse, and administer the loans, with repayments eventually returning to FFFLF. Potentially qualifying 501 (c)(3) organizations include: places of worship, social service agencies, other interest-free loan programs, and other charitable community organizations.
Qualifying for a Free Loan Line of Credit (FL-LOC)
1) Available to smaller 501(c)(3) charitable organizations, who make interest-free loans to help people in critical temporary financial distress to become or remain self-supporting..
2) The 501(c)(3) charitable organization must submit a completed FL-LOC application, signed by an authorized officer.
3) The FL-LOC loan application must be approved by the board of FFFLF.
4) The FL-LOC Note must be signed by an officer and accompanied by an authorizing director’s resolution of the borrowing 501(c)(3) charitable organization, before any funds are distributed
5) Preference is given to 501(c)(3) charitable organizations with under $300,000 in total assets.
6) The maximum line of credit is $50,000. The minimum draw is $5,000.
7) The borrowing 501(c)(3) charitable organizations must submit a semi-annual Use-of-Funds Report each June 1 and December 1, containing the specified information.
8) The FL-LOC funds must be used for interest-free loans, and not operating or other expenses, as documented in the Use-of-funds reports.
9) As loans funded by the 501(c)(3) charitable organization are repaid, the organization must eventually repay down the outstanding FL-LOC balance.
10) As loans are repaid, up to $20,000 may be held in cash reserves, awaiting loan disbursement, as documented in the Use-of-funds report. Any cash sums above $20,000 must be repaid to FFFLF. In practice, if the funds are continually rolled into new loans, no repayments would be required over periods of years.
11) There are no fees or interest charges.
12) The FL-LOC term is 10 years, and is renewable on reapplication.
13) "Related” organizations, as defined by the IRS, are excluded from receiving FL-LOC loans, including any organization that have any Board members or officers that are also on the Board of FFFLF. However an FL-LOC loan may be made to an otherwise qualifying 501(c)(3) charitable organization that has one or more employees or volunteers (but NOT directors or officers) that also serve on the board of FFFLF. (This recognizes that such persons could bring direct valuable expertise and experience to the board of FFFLF).
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To Apply please download the FL-LOC appplication
and email the completed application it to info@BosFreeLoan.org
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*
The Boston Free Loan Society (BFLS)
is a DBA name for Fisher Family Free Loan Fund, Inc. (FFFLF),
and is a 501(c)(3)
Massachusetts nonprofit corporation. BFLS/FFFLF is not affiliated with any interest-free loan activities of the Combined Jewish Philanthropies (CJP) of Greater Boston.
