News & Event
The Community Foundation of the Holland/Zeeland Area’s (CFHZ’s) Line of Credit (LOC) Guarantee Program allows nonprofit organizations that are tax exempt under Section 501(c)(3) of the Internal Revenue Code, are serving a charitable purpose in the greater Holland/Zeeland area, and had a 2019 operating budget in excess of $500,000 to apply to have a CFHZ guaranteed line of credit established through West Michigan Community Bank.
CFHZ’s Line of Credit Guarantee Program has a total cap of $2 million, so we anticipate being able to partner with 10-15 nonprofits through this program. Please note – as with CFHZ’s competitive grantmaking program, religious organizations that advocate specific religious doctrines through their programs, or do not serve the broader community, are not eligible.
Those nonprofit organizations accepted into this program by CFHZ will then be connected to West Michigan Community Bank (WMCB) to establish their line of credit account. Since CFHZ is guaranteeing this line of credit, the nonprofit will not have to put forward any collateral, nor will the nonprofit go through a traditional underwriting process.
In addition to guaranteeing the LOC, CFHZ will provide reimbursement to the nonprofit for all interest that the nonprofit has paid on the LOC during the first 2 years, up to 4% per year. During the third year that the LOC is open (third year is open for repayment only), CFHZ will not be reimbursing interest costs paid by the nonprofit. Here are some additional details on how the interest reimbursement will work:
CFHZ has been listening to our partners as they describe the significant cash flow challenges being experienced so suddenly due to loss of revenue and increased demand for services during this pandemic crisis. We have heard that significant decisions need to be made quickly, and without a lot of clarity as to what the next 3-12 months are going to look like.
In response, we are launching this new program as a way to further leverage our Community’s Endowment assets to support some of our mid-to-large nonprofit partners and preserve critical community capacity in this time of extraordinary need.
Here is what we hope the program will accomplish:
We understand that this is likely not going to prevent nonprofits from having to make tough choices down the road, as this isn’t grant money, but it will hopefully provide nonprofits the gift of time to make those choices and the option of choosing to spread the difficult decisions out over a multi-year period.
We also acknowledge that by only allowing nonprofit organizations with budgets over $500,000 to apply for this program that this tool is for a limited portion of our nonprofit sector. We recognize that many of our smaller nonprofit organizations are doing very important and critical work as well and want to be clear that this particular program is only one tool in our toolbox.
In addition to this LOC guarantee program, we are utilizing the Emergency Human Needs Fund to deploy capital over a six-week period to organizations providing emergency basic needs services, and we will be re-working our competitive grantmaking strategy for the remainder of 2020. We anticipate our new competitive grantmaking framework and process to be announced in June when we have a better sense of how the federal stimulus funds have supported our community members in need and our nonprofit partners.
Please note – participating in this Line of Credit Guarantee program does not preclude an organization from receiving a grant from CFHZ. This is an entirely different process and tool.
Applications will be reviewed by a joint taskforce of CFHZ Distribution Committee and Program Related Investment (PRI) Committee members with support from CFHZ staff. The review committee will be choosing organizations based on the following priorities:
Step 1: Submit your CFHZ line of credit guarantee program application via the following link by April 24, 2020:
You can use this PDF as a worksheet to view all questions in preparation for submitting the application form online.
The PDF worksheet shows you the “word count” limits for each question, but you do not need to use all the words, and lists are fine. In addition to the PDF worksheet that shows the “open ended” questions in the application, you will also be asked to submit attachments as follows:
LOC GUARANTEE PROGRAM APPLICATION
Step 2: CFHZ will reach out to the contact listed for your organization as close to May 4 as possible with our final decision as to whether your nonprofit has been accepted into the program. We may reach out to you ahead of this date if additional information is needed alongside your application.
Step 3: If your nonprofit is approved to be included in this program, CFHZ will provide your organization it’s Line of Credit dollar approval limit, and will connect you to West Michigan Community Bank in order to establish your line of credit account via a separate application (which will NOT involve collateral or underwriting).
Step 4: At that point, any ongoing communication and reporting requirements will be between the nonprofit organization and their assigned contact at West Michigan Community Bank, with CFHZ being involved only in reimbursing interest every 12 months for the first two years.
Unlike our competitive grant program, you do not need to contact CFHZ prior to completing this Line of Credit Guarantee application. However, if you do have additional questions about the program or application, please contact Mike Goorhouse at firstname.lastname@example.org or 616-994-8855.
The Community Foundation of the Holland/Zeeland Area is pleased to announce the awarding of 17 grants totaling $568,604 from the Community’s Endowment in 2019.
Outdoor Discovery Center - ecoSystem Education Network
Macatawa Area Coordinating Council - Creating a Green Infrastructure Vision for the Macatawa Watershed
Ladder Homes - Housing Capacity Expansion
Goodwill Industries of West Michigan - Holland/Zeeland Career Training Center
Beacon of Hope - Building Campaign
REGISTER ONLINE NOW
Join us to hear from President/CEO Mike Goorhouse and Vice President of Community Impact Elizabeth Kidd. This event features highlights of our recent grant impact and other community improvement efforts happening in the local nonprofit sector.
Please RSVP by
This event has historically filled to capacity so please register ASAP to secure your spot.
It truly was an incredible night filled with delicious food, great people, and an inspirational program. Together, we celebrated our community's generosity and increased awareness about the exceptional work happening with the Holland/Zeeland Promise Scholarship at our largest event yet!
Special thanks to our guest speakers, Yessica and Rodrigo, who captivated the room with their stories of perseverance and hope.
The Holland/Zeeland Promise began in 2010 as a dream to replicate the Kalamazoo Promise and allow our area's young people to graduate from college or technical school without the burden of crushing student debt.
Since 2010, more than 100 individuals and businesses have supported 47 scholars as they have pursued degrees throughout Michigan. Most donors make four-year "promises" so scholars can be supported all the way through school.
Candidates are nominated by their high school or Careerline Tech Center counselors or organizations such as Upward Bound, the Boys and Girls Club of Greater Holland, or Latin Americans United for Progress.
Selection is rigorous and based on a range of factors including financial need, clear motivation to achieve a college or technical degree, and strong recommendations. Additionally, most Promise recipients are the first in their families to pursue higher education.
Side-by-side support and peer mentoring set the program apart.
The Holland/Zeeland Promise boasts a 93 percent graduation rate, with many scholars choosing to return to the Holland/Zeeland area to work, live and give back.
There are two ways you can support the Promise Scholarship financially. Most donors choose to make a four-year commitment which aligns with the four-year scholarship promise we make to new students. If you are interested in making a four-year commitment, you can do so here. You can also make a one-time gift.
If you want to learn more about CFHZ or the Holland/Zeeland Promise Scholarship, don't hesitate to contact Colleen at email@example.com or 616-396-6590.
Check out the event recap featured in the MiBiz, and the Holland Sentinel News.
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