Cash Flow Loans

Cash flow loans, also called program-related investments (PRIs), are loans that foundations provide at favorable rates to support activities that have a direct charitable purpose.

In an effort to increase the impact of our resources and respond more quickly to the needs of our nonprofit community, we began providing these types of loans in 2003. Unlike grants, cash flow loans take the form of investments, requiring the return of capital within an established time frame, plus modest interest payments. For the recipient, the primary benefit is access to capital at lower costs and faster turnaround times than may otherwise be available. For the funder, the principal benefit is that the repayment can be recycled for another charitable purpose.

Who is eligible?

Nonprofits that meet our eligibility guidelines may apply for a cash flow loan. In addition, organizations must be able to show delayed receivables from government, foundation or corporate grants and contracts. Loans are made on a first-come, first-served basis from a revolving pool of $100,000.

What are the loan terms?

  • Minimum: $10,000
  • Maximum: $25,000 for organizations that have never received a grant award from the Knott Foundation; $30,000 for past grantees. From time to time, we may consider larger cash flow loans on a case by case basis. Please inquire if you are interested in a larger amount.
  • Up to six (6) months
  • 0.5% if repaid within 45 days
  • 1% if repaid before 90 days
  • 2% if repaid anytime after 90 days within the allotted six (6) month period

How do I apply?

Important: We do not accept requests for Cash Flow Loans through our online grant application portal at this time. Please contact Christina Rickman, our Business Manager, to complete a brief background conversation regarding your request. Following this conversation, the Foundation will send an application for completion via email. Please note that along with the application, the following documents must be received in order for us to consider your request:

  • A copy of the approved contract or grant award letter including specific award terms and conditions, the signature pages, the approved contact budget, and, if applicable, the notice to proceed letter
  • A current list of the board of directors with addresses and board titles
  • The most recent year's audited financial statements
  • The current year operating budget
  • A year-to-date financial statement, including a balance sheet
  • A signed copy of the most recent state or unemployment tax return
  • A signed copy of the most recent 941 Employers’ Quarterly Tax return

What happens after I submit my request?

Once we have received your submission, your completed application packet is sent to a committee for further review, discussion, and approval. Loan notifications are made within two to three weeks of the application submission date.

If my request is approved, when is repayment due?

Repayments are based upon the terms of your loan agreement. If at any time you realize you are unable to meet these terms, please contact us immediately.

Is there a reporting requirement for approved loans?

No. Repayment of your loan is considered your report.