City of Riverside Makes Historic Investment in Non-Profit Organizations Through Revolving Loan Fund
Published: 3/13/2024
FOR IMMEDIATE RELEASE:
Mar. 13, 2024
Contact:
Phil Pitchford
Public Information Officer
951-826-5975
City of Riverside Makes Historic Investment in Non-Profit Organizations Through Revolving Loan Fund
Riverside Non-Profit Resilience Fund scheduled to be up and running later this year
RIVERSIDE, Calif. – Non-profit organizations in the City of Riverside will have access to much-needed funds, which can be difficult to obtain through conventional means, through a new revolving loan program called the Riverside Non-Profit Resilience Fund.
The $2.8 million program will be administered in partnership with the Inland Empire Community Foundation to provide non-profits with financial stability that can otherwise be hard to achieve. The leaders of more than a dozen local non-profits said the ability to obtain loans through the program could mean the difference between thriving and not surviving in an organization’s early years.
The self-sustaining program will be funded with money from the federal America Rescue Plan Act, or ARPA. Local governments must encumber the federal funds by the end of this year and spend them by the end of 2026 or return the money to the federal government.
“The Riverside Non-Profit Resilience Fund can be a lifesaver for an organization that is doing great work,” Mayor Patricia Lock Dawson said. “The beauty of this approach is that, as the loans are repaid and the fund refreshed, even more organizations will be helped.”
The program will assist non-profits that could otherwise struggle to access capital needed to deliver essential services that are not provided by any other agency. For example, banks or other financial institutions may be leery of working with non-profits, which sometimes receive funding from county, state or federal governments many months after agreements with those governments are approved.
Those delays can make it impossible for a non-profit to acquire or renovate a workspace, buy equipment, or obtain necessary supplies. Without those critical early steps, non-profits can struggle to obtain larger grants needed to ensure self-sufficiency.
“These funds will play a key role in supporting non-profit organizations as they serve and assist some of the most vulnerable members of our Riverside community,” Mayor Pro Tem Steve Hemenway said. “We look forward to the positive benefits this program will have for many years to come.”
Loans administered through the Riverside Non-Profit Resilience Fund would vary according to the needs of individual non-profits, but loans likely will be in the range of $150,000 to $200,000. The Community Foundation will seek additional funding from non-city sources to pair with the City seed funds to make the fund larger and more impactful.
Next steps include the City and the Foundation working together during the next 90-120 days to create a legally binding agreement between the two entities to carry out the program’s goals. That process is expected to be completed by this fall, with the first loans made late this year or in early 2025.
