Learn more below and see if you qualify

While the official deadline was July 7, nonprofits are encouraged to explore SBNLP criteria below and submit an application. Should we have funding left after the current batch of applications are reviewed, we will consider the next set of applications received after July 7. If we don’t have funding left, we will still review the next set of applications to see if we can make connections to other sources of capital.

Read through the FAQs on this page to see if you qualify to apply for the nonprofit loan pool of the San Diego County COVID-19 Small Business & Nonprofit Loan Program (SBNLP). Answer a few quick screening questions to see if you are eligible to apply.

What is SBNLP?

The San Diego County COVID-19 Small Business & Nonprofit Loan Program (SBNLP) is a collaborative initiative to provide low-interest and no-interest loans to small businesses and nonprofit organizations and aid in the region’s economic recovery from the coronavirus.

The nonprofit loan pool has new expanded eligibility. The annual maximum revenue has increased to $25M, and the maximum loan amount has increased to $500,000.

Who is eligible for the nonprofit loan pool?

Your organization is eligible if your organization:

  • Is a 501(c)(3) nonprofit or has a 501(c)(3) fiscal sponsor, in good standing, and with recent IRS Form 990 on file (from the last 18 months).
  • Is located in San Diego County or has been serving San Diego County residents for the last 18 months.
  • Has total revenues between $500,000 and $25M in its last fiscal year and/or the 12 months ending February 2020. Total revenues can include philanthropic donations and must include other earned revenue (see below).
  • Has an earned revenue stream that is not donation-based, i.e. your organization earns revenue from membership fees, workshop and event fees, sales of products, fee for service contracts, reimbursable grants or contracts, etc.
  • Forecasts the ability to fully repay a zero-to-low interest loan within 2.5 years.
  • Lacks sufficient access to capital  from other sources of financing, including banks and other new and existing government programs such as EIDL and PPP (you can still apply to this loan even if you have received EIDL or PPP).
  • Has a clear need and use of funds, including:
    • Emerging from COVID-19-induced setbacks and needs staff retraining, PPE, facilities modifications, etc.
    • Nonprofit is increasing service provision and has to pay for increased operational and program expenses upfront, in advance of expected or contracted revenue
    • Innovating or repurposing capacity and need working capital to shift models

What types of nonprofits or activities are prioritized?

  • Those delivering critical and important front-line care that can alleviate immediate physical and mental health and economic effects of COVID-19 on individuals and families in San Diego County
  • Those serving communities in San Diego County that are disproportionately affected by this pandemic and its economic consequences, including populations that face disparities due to social determinants of health
  • Those that have demonstrated commitment to diversity, equity, inclusion, and community voice with board, staff, and services
  • Those with additional contracts, financing, or philanthropic resources that may be unlocked due to receiving this loan

What activities are excluded?

  • Religious activities including proselytizing
  • Political activities including lobbying

How much can I borrow and what are the loan terms?

  • Loan amounts between $50,000 and $500,000 (final loan amount will be determined based on the outcome of underwriting)
  • Loan term from 6 to 30 months (not respective to above amounts)
  • 0–3% annual interest rate
  • Closing costs of up to 1.5% of the loan amount
  • No prepayment penalties
  • Collateral requirements will be determined on a case-by-case basis

Here’s an example of what this looks like in practice:

SBNLP sample math

Who will be approving the loan?

The San Diego Foundation nonprofit loan committee, with support from Mission Driven Finance’s underwriting team.

Is this loan forgivable?

No. Unlike the Paycheck Protection Program, this loan is not forgivable and must be repaid in full.

We recommend not borrowing more than 30% of your annual revenue from your last full fiscal year so that your organization’s cashflow is not excessively burdened, especially to repay within the next 2.5 years.

Am I still eligible if we have received EIDL or PPP?

Yes, and we recommend you apply for both of those programs if you haven’t already.

What can be the loan be used for?

The loan can be used for any operating or administrative expenses aside from expenses related to certain fundraising events (staff salaries for incumbent development staff are allowed).

When do I have to pay the principal and interest on my loan?

Payment structures will vary depending on the outcome of underwriting, and may include deferred payment, balloon, and amortizing payment schedules.

Can I apply for more than one loan?

No; each organization can apply only once. Organizations serving as fiscal sponsors for more than one organization may submit separate applications for each applying organization.

Is the nonprofit loan program “first come, first serve”?

Rather than deploying loans on a first-come, first-serve basis, we will accept loan applications over a period of time and review all loan applications before making decisions.

How do I apply?

Answer a few quick screening questions to help you see if you qualify. If you do, you will see the application form appear. After submitting an application, you may be asked to upload some or all of the below documents via an application portal called LenderFit, if your application meets preliminary underwriting thresholds. (Being invited to upload documents to Lenderfit does not mean you are approved for or guaranteed a loan.) 

While the official deadline was July 7, nonprofits are encouraged to explore SBNLP nonprofit criteria and submit an application. Should we have funding left after the current batch of applications are reviewed, we will consider the next set of applications received after July 7. If we don’t have funding left, we will still review the next set of applications to see if we can make connections to other sources of capital.

SBNLP nonprofit application process

How quickly will I receive my funding?

The timing of application review, analysis, approval and loan deployment hinges heavily on the timing of applicants responding to our requests during underwriting (after screening and invitation to Lenderfit). It can take anywhere from 4 to 6 weeks to much longer depending on how quickly our team receives the requested materials and/or answers to our questions.

SBNLP timeline

What materials will I need to include in my application?

  • A brief summary of your nonprofit’s charitable purpose and activities
  • A description that includes operational expenses and how the loan will create positive impact in the San Diego community
  • An overview of your organization’s employment, including jobs lost/retained/expected, and wage information
  • Documented revenue from grants/contracts, and letters of intent, if any

What documents will I have to upload if Mission Driven Finance determines that my application meets preliminary underwriting thresholds? You may be asked to upload some, all or additional below documents:

  • Copies of the nonprofit’s 501(c)(3) determination letter, articles of incorporation, and bylaws
  • Bios of your management team, organization chart, and a listing of the board of directors
  • Last fiscal year and year-to-date (YTD) financials, including statement of financial position and statement of activities (audited as applicable for revenue of more than $2 million)
  • Most recent IRS Form 990
  • Financial forecast or expected budget through the requested loan term, detailing the repayment
  • Schedule of any other debt obligations and liabilities, including leases, lines of credit, mortgages, and credit cards
  • Board resolution for the assumption of debt (before closing)

Our partners at the San Diego & Imperial Small Business Development Center Network (SBDC) are ready to help you get materials ready for this loan program and to understand any other disaster assistance programs. For support, please register at sdsbdc.ecenterdirect.com/signup.

Clearly indicate that you represent a nonprofit when asked to “please describe your product or service.” You will be flagged as a nonprofit and directed to a case manager familiar with nonprofit structure and operations dynamics for support. The Brink, an SBDC housed at the University of San Diego, is working closely with The Nonprofit Institute at USD to support our region’s nonprofit organizations.

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