The San Diego Foundation and a local impact investor on Thursday announced that money lent out via a pandemic-era nonprofit loan program has been repaid with scant losses.
Of the $5.2 million loaned to nonprofits that struggled due to COVID-19, less than .0001% was lost.
“Through this loan program, we were able to quickly assist nonprofits alongside our government and financial services partners, while addressing our region’s most critical needs during a turbulent time,” said James Howell, vice president and CFO at San Diego Foundation.
The San Diego County COVID-19 Nonprofit Loan Program, according to a statement by the foundation, supported 26 agencies throughout the region.
The borrowers included Angels Foster Family Network, which connects children in foster care with families, Anza-Borrego Foundation, which supports education, research and conservation programs benefiting Anza-Borrego Desert State Park, and Space 4 Art, which encourages innovation and interaction between artists, educators, youth and the community.
“Remembering the devastation COVID-19 wreaked on our nonprofit ecosystem, it is incredibly powerful and gratifying to see a relief interest-free loan program for nonprofits where over 99% of the capital is repaid, early, to our investors,” said Louie Nguyen, chief investment officer at Mission Driven Finance, a lender near Old Town that provides capital to those that are unable to tap traditional funding sources.
The loan program began in April 2020 with seed funding from the San Diego Foundation. It provided zero-interest gap financing to local nonprofits, particularly “those providing front-line care to affected communities, with a priority on those serving communities disproportionately affected by the global pandemic and its economic consequences.”
“The loan helped us pull through in a time of uncertainty. Knowing there’s money coming in stabilized progress on major projects, including purchasing land and formulating a multi-year strategic plan,” said Bri Fordem, executive director of the Anza-Borrego Foundation.
Loans ranged from $150,000 to $300,000 with terms from 18 to 30 months. The funding went toward operations, employee retention, rent and other overhead costs.
The foundation plans to reinvest the $5.2 million in housing-related efforts.
– City News Service contributed to this report
