As COVID-19 is undermining the operations of nonprofits across the country at just the moment that their work is needed the most, LENDonate has launched a new Solidarity Loan Program. These $25,000 to $100,000 6-month interest-only loans will be made available to 501(c)(3) nonprofits that are well established but are at risk of deep and permanent cuts to program services if working capital is not received immediately.
LENDonate is an Oakland based fintech company that launched a hybrid, online lending platform for 501(c)(3) nonprofits in 2017. The platform allows nonprofits to source loans and donations simultaneously.
LENDonate was founded by Vivienne Hsu, CEO, a seasoned investment professional and nonprofit fundraiser. She was motivated by a desire to improve nonprofits' access to the low-cost funding, while providing high-quality, socially impactful investment opportunities for banks and philanthropists.
“LENDonate is creating a new ecosystem for nonprofit finances, one in which all sides win,” said Vivienne Hsu, founder and CEO of LENDonate. “The traditional loan experience for nonprofits tends to be long and arduous, generally accompanied by high costs. LENDonate brings all parties together to simplify and speed funding of high-quality loans, while empowering lenders to customize lending to meet their financial goals.”
Whether they are purchasing property or major equipment, hosting a large fundraiser, or waiting on a delayed grant, nonprofits occasionally need an immediate cash inflow. Turning to banks, foundations, or major donors for relief can be a complicated, time-consuming and expensive process as the nonprofit sorts through specialized funds, bank requirements and mounds of paperwork.
LENDonate streamlines this process by underwriting and structuring the loans on the marketplace where a large universe of banks, foundations, CDFIs, and accredited investors can tailor their financial support in forms of donations, loans, or a combination. Philanthropic lenders may offer rate reductions. LENDonate also assesses nonprofit borrowers for credit enhancement opportunities that lead to reduction of credit risk and borrowing rates.
All loans featured on the LENDonate platform are offered under Rule 506(c) to Accredited Investors as defined in Rule 501(a) of Regulation D of the Securities Act of 1933.
For more information, visit https://www.lendonate.com/solidarity-loan