MacArthur Foundation invites applications from art organizations for funds to be offered by the MacArthur Arts & Culture Loan Fund. This fund was started in 2009. Every year, one-time grants are offered with the help of this fund for projects of special importance to the arts community. The Fund provides opportunities to small and medium sized arts organizations (with budgets between $250,000 and $3 million) to address cyclical cash flow shortages that are usually experienced by such organizations.
Objectives
- To provide a financing mechanism to address the short-term cash flow needs of small and mid-sized arts and culture organizations
- To strengthen financial awareness and management by deepening organizations’ understanding of cash management tools and organizational budget cycles
- To help organizations build institutional credit history, so that they may develop future, independent relationships with commercial lenders
Program Design
The program will make available two types of loans:
- A standard line of credit with monthly interest payments and one-year terms. Loans range in size from $50,000-$100,000. The interest rate varies depending on the financial institution selected.
- One-time cash flow “bridge” loans with monthly interest payments and 6-month terms. Loans range in size from $25,000-$50,000. The interest rate varies depending on the financial institution selected.
The MacArthur Foundation has made program-related investments with local financial institutions to serve two functions: first, the deposit will act as cash collateral for these loans, which provides an incentive to make smaller loans that typically would not be attractive to banks; and second, earnings on the PRI will help offset the staff time for underwriting and loan monitoring, which cannot be paid through the low interest rates on these loans.
The Foundation is pleased to announce that in addition to its original relationship with Urban Partnership Bank (formerly ShoreBank), the $1.5M MacArthur Arts and Culture Loan Fund program is now available to existing MacArthur arts grantees through two additional financial institutions: American Chartered Bank and MB Financial Bank. The intent is to offer grantees more choice in where they establish their banking relationships.
Fund Partners
The Fund has been established through a partnership among MacArthur and the following organizations:
- The Executive Service Corps of Chicago
- American Chartered Bank
- MB Financial Bank
- Urban Partnership Bank
Eligibility Conditions
Applicants must:
- Be a current general operating support grantee of the Foundation’s arts and culture program, either directly or through one of the MacArthur Funds at the Prince Charitable Trusts or the Richard H. Driehaus Foundation.
- Have an annual expense budget in its last fiscal year between $250,000 and $3 million at the time of its loan application.
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