More Questions and Answers about the Children's Investment Fund

7. What kind of assistance can my organization get from the FUND?

The FUND offers:

• Term loans of up to $350,000 (more under certain circumstances) per project for renovations, quality enhancements, acquisitions, and/or equipment purchases.  Loans of $25,000 or less can be approved at the staff FUND level, and are therefore somewhat easier and quicker to process. For projects that need larger loans than we can provide, we are often able to secure the participation of other lenders at comparable rates, in order to meet borrowers' needs. (Note: a single organization can also receive multiple FUND loans for different projects, so long as the total amount outstanding is no greater than $500,000).
  
  
• Technical assistance loans to assist with moving a project forward, such as engineering, architectural or legal assistance.  These loans are available at 0% interest, with repayment required only if the project moves forward. (Note: Funds for this purpose are limited, and may not be consistently available.)
  
  
• Technical assistance services in project development planning, to help providers plan for and manage loan repayment.

Providers may request assistance through more than one project component; for example, a loan to a small organization might be accompanied by technical assistance to help the organization strengthen its financial systems and better assess its ability to repay the loan.  Similarly, a large renovation project might be assisted by a combination of technical assistance from an architect, and a large term loan.

8. What are the loan terms which the FUND offers?

Loans are typically offered at interest rates comparable or lower than bank rates, and are available for 1 to 10 year terms, depending on the particular project.  The interest rate offered does not vary with the size of the loan.  There is a commitment fee equal to 1% of the amount borrowed.   The commitment fee may be included with the loan request.  Loan terms are generally tied to the lifetime of the improvement.  For occasional larger projects, the FUND will consider amortizing the loan over a longer period of time than 10 years, with a balloon repayment.

The total loan size generally does not exceed $350,000. However, larger loans will be considered. And in cases where the amount needed is larger than the FUND can provide, we are often able to secure the participation of other lenders at comparable rates.

Whenever possible, loans will be secured.  The FUND, however, can typically be more flexible than most banks about the strength of the collateral it requires.  Collateral, restrictions and disbursement methods for the loans will be determined on a case by case basis by the FUND.  Should the borrower cease to operate the facility on a non profit basis or cease to meet the objectives of the FUND, the loan will be due and payable.

More Questions and Answers about the Children's Investment Fund:

1. What is the Children's Investment Fund?

2.  What kinds of projects does the FUND support?

3. Who's eligible for assistance from the FUND?

4. What are the FUND's requirements with regard to targeting low-income children?

5. Are centers which rent rather than own their space eligible for assistance?

6. What are the FUND's priorities in reviewing applications for support?

7. What kind of assistance can my organization get from the FUND?

8. What are the loan terms which the FUND offers?

9. If I borrow from the FUND, how much will my monthly payments be?

10. My center has a project in mind, but we haven't yet figured out all the details.  Where do we go from here?

11. How long does it take to process my loan application?