Cash Flow Loan Program

The Dyson Foundation Cash Flow Loan Program makes short-term (30 to 180 days) cash flow loans of up to $50,000 against fully approved government contracts and foundation or corporate grants. The loans are made on a first-come, first-served basis from a revolving fund of $300,000.

Eligibility
To be eligible for a cash flow loan, an organization must be a 501 (c) 3 nonprofit organization based in the Mid-Hudson Valley (Columbia, Dutchess, Greene, Orange, Putnam, and Ulster counties) and must have received a Mid-Hudson Valley Dyson Foundation grant for general operating support or project support during the last three years.

Program Details
Loans are interest-free but carry a two percent (2%) service charge that is deducted when the loan is made. Organizations repaying their loans within 30 days receive 75 percent of the service charge in return, and within 90 days, 50 percent.

All recipients who honor the terms of the loan may return to the program for additional funds, however there is a limit of one cash flow loan per calendar year.

Three criteria will be considered in approving a cash flow loan:

  • The existence of a legally binding contract currently in effect that is not at risk for defunding or nonpayment, a written grant commitment, or another legally binding receivable
  • The ability to repay as evidenced by the organization's overall financial health and its projected cash flow for the repayment period
  • The financial management record of the board and executive director and their commitment to timely repayment

Application Procedure
Step 1: Contact your organization's program officer at the Foundation to make an initial inquiry and to discuss whether a cash flow loan application makes sense for your organization’s particular situation.

Step 2: Loan program staff will then assist you in completing an application.  After your application is submitted staff may also contact the funding agency responsible for the contract or grant against which the cash flow loan will be made, and, for first-time applicants, may request a meeting with your organization's board chair and executive director.

Step 3: Loan program staff will notify your executive director of the loan decision, and, if the loan is approved, the amount and repayment date of the loan.

Step 4: An officer of the board and the executive director will sign a loan agreement letter and a demand promissory note. Upon receipt of these counter-signed documents, the loan funds will be released. 

For further information, call 845.677.0644 or email your program officer.