Nonprofit Bridge Loans Overview


In partnership with UJA-Federation of New York, the Nonprofit Bridge Loan Program provides interest-free loans of up to $500,000 for terms of up to six months to qualified nonprofit organizations.

These loans are reserved for a specific group of borrowers: Nonprofit organizations that have received grant funding from UJA-Federation of New York in the past 10 years and are not currently “core partners” (agencies receiving an annual general support allocation from UJA-Federation).

These loans are intended for managing cash flow issues: Cases where an organization is raising the money it needs but not necessarily receiving revenue at the time it needs cash to deal with regular monthly expenses. These loans are not intended for growth capital or to finance special projects.

The loan requested must not exceed 33% of the agency total budget, and the agency’s cash-flow projection for the borrowing year must show confirmed revenues totaling at least 75% of the loan amount (pledge agreements, grant letters, fee for service contracts, repeating gifts by Board members, etc.).

To qualify, borrowing nonprofits must:

  • Have a 501(c)(3) determination letter from the Internal Revenue Service
  • Have been in existence for three years or more
  • Have an annual operating budget of at least $500,000
  • Be financially stable, as demonstrated by:
    • Receiving a certified unmodified audit for the previous 2 years
    • Meeting revenue projections for the previous 2 years
    • Having no projected deficit for the current year
    • Having had no unplanned deficit in the previous 2 years
  • Not have another loan or line of credit already in place
  • Cash flow projection (see Required Documents Download below) must include a minimum of 75% reliable revenue to cover the amount requested, defined as pledge agreements, grant letters, tuition contracts, any other contracts, repeating gifts by Board members
  • Provide guarantees from Board members or donors for 30% of the total amount of the loan requested

Guarantor Information

As part of their application, agencies must provide guarantees from Board members or donors for 30% of the total amount of the loan requested. Please note that a couple is considered one guarantor.

  • US citizens or legal residents currently living in NYC’s five boroughs, Westchester, or Long Island
  • FICO score of 680 or higher
  • The amount guaranteed may not be more than 25% of the guarantor’s annual income as shown on the preceding year’s tax return or more than 10% of liquid assets as shown by statements or verified by a letter from the guarantor’s accountant

Even if they meet the requirements above, the following people may not guarantee a loan:

  • Persons who are currently a guarantor on an HFLS loan
  • Persons who are unable to repay the loan

Loan Documents

The documents below are required for a Nonprofit Bridge Loan. Once you have completed or collected all the documents below and have all the necessary signatures, please submit them by email to HFLS Director of Finance & Administration, Daren Scott, at dscott@HFLS.org, or send hard copy originals to HFLS Nonprofit Bridge Loan Program, 675 Third Ave, Suite 1905, New York, NY 10017.

From the borrowing institution:

  1. Loan application, completed and signed by the borrowing institution’s authorized representative
  2. A cash flow projection, using the Cash Flow Projection Template 
  3. Guarantor Form, completed and signed by the guarantor and their spouse, if married
  4. Copies of government-issued photo IDs that include signature for the guarantor and their spouse, if married (e.g. driver’s license or U.S. passport)

The Required Documents Download section below contains PDFs of the Application, Cash Flow Projection Template, and Guarantor Form.

Loan Decisions & Closing

HFLS reviews and decides on loan applications weekly. If we have questions about your application or guarantor, you may receive a call or email from an HFLS staff member asking for further information before HFLS will make a decision. HFLS, in its discretion, may decline to make a loan, make a loan in an amount less than that requested, or require a different guarantor.

Required Forms Download


After you have reviewed the documents below, if you have further questions about the
application, the loan program, or the loan process, please contact Daren Scott, HFLS
Director of Finance and Administration, at dscott@hfls.org or at 212-687-0188 x8211.