Metropolitan Atlanta Arts Fund

Overview | Eligibility & Process | Sample Loans | FAQs

Examples of potential loan transactions:
The Arts Loan Fund provides short term financing to small to mid-sized non-profit arts organizations experiencing short term cash flow shortages. These bridge loans help organizations stabilize their cash flow while awaiting various sources of guaranteed, or historically received, revenues. The following examples of loan transactions are provided to illustrate potential opportunities for loan financing from the Arts Loan Fund.

A dance company has been notified that they have been awarded a grant of $17,000 from a local or national arts council. The notification was received in March with funding expected to occur in November. The Arts Loan Fund might consider a loan with the following terms:

Loan Term: 8 months (March to November)
Loan Amount: $15,000 (88% of grant to be paid)
Interest Rate: Prime + 2%

An established theater company holds drama classes every year from September through May. Gross tuition revenues for the past five years have run between $15,000 and $25,000, with an average of $19,000. Tuition is paid in September. The theater experiences a cash shortfall from June until September until tuition payments are received. The Arts Loan Fund might consider a loan with the following terms:

Loan Term: 4 months (June through September)
Loan Amount: $10,000 (67% of the lowest tuition revenue over the past 5 years and 53% of the average)
Interest Rate: Prime + 2%

A well-known organization provides traveling displays of its art. The majority of its display booking revenue is received in the spring, although contracts are signed well in advance of the actual show. Gross bookings for the coming year exceed $50,000 and have averaged $45,000 over the past three years. The Arts Loan Fund might consider a loan with the following terms:

Loan Term: 12 months - with principal due as specific booking revenue is received
Loan Amount: $25,000 (50% of booked revenue and 56% of the average)
Interest Rate: Prime + 2.5%

A museum holds an annual fundraising drive in September of each year. They need funds to kick off the program in August. Pledges are generally received before year-end. Pledges have averaged $20,000 for the past four years with a low of $10,000 and a high of $30,000. The Arts Loan Fund might consider a loan with the following terms:

Loan Term: 5 months (August - December)
Loan Amount: $5,000 (50% of the lowest total pledges and 25% of average)
Interest Rate: Prime + 2.0%

These illustrations are meant to provide examples of potential loan transactions. Other scenarios may be considered as well. Please contact Sandy Kring at 404-526-1130 or artsloanfund@atlcf.org to discuss your organization's specific situation.

Learn More About The Loan Fund:

Loan Fund Overview
Frequently Asked Questions

Application Downloads
1. Loan Fund Application (Word)
2. Loan Fund Application Guide (PDF)

Supplemental Downloads
1. Sample Note & Security Agreement (PDF)
2. Resolution Of The Board of Directors - Standard (Word)
3. Resolution Of The Board of Directors - Pre-Approved (Word)
4. Cash Flow Worksheet (Excel)
5. Cash Flow Worksheet (Word)

Questions? Contact Sandy Kring at: artsloanfund@atlcf.org


	Overview \| Eligibility & Process \| Sample Loans \| FAQs Examples of potential loan transactions: The Arts Loan Fund provides short term financing to small to mid-sized non-profit arts organizations experiencing short term cash flow shortages. These bridge loans help organizations stabilize their cash flow while awaiting various sources of guaranteed, or historically received, revenues. The following examples of loan transactions are provided to illustrate potential opportunities for loan financing from the Arts Loan Fund. A dance company has been notified that they have been awarded a grant of $17,000 from a local or national arts council. The notification was received in March with funding expected to occur in November. The Arts Loan Fund might consider a loan with the following terms: Loan Term: 8 months (March to November) Loan Amount: $15,000 (88% of grant to be paid) Interest Rate: Prime + 2% An established theater company holds drama classes every year from September through May. Gross tuition revenues for the past five years have run between $15,000 and $25,000, with an average of $19,000. Tuition is paid in September. The theater experiences a cash shortfall from June until September until tuition payments are received. The Arts Loan Fund might consider a loan with the following terms: Loan Term: 4 months (June through September) Loan Amount: $10,000 (67% of the lowest tuition revenue over the past 5 years and 53% of the average) Interest Rate: Prime + 2% A well-known organization provides traveling displays of its art. The majority of its display booking revenue is received in the spring, although contracts are signed well in advance of the actual show. Gross bookings for the coming year exceed $50,000 and have averaged $45,000 over the past three years. The Arts Loan Fund might consider a loan with the following terms: Loan Term: 12 months - with principal due as specific booking revenue is received Loan Amount: $25,000 (50% of booked revenue and 56% of the average) Interest Rate: Prime + 2.5% A museum holds an annual fundraising drive in September of each year. They need funds to kick off the program in August. Pledges are generally received before year-end. Pledges have averaged $20,000 for the past four years with a low of $10,000 and a high of $30,000. The Arts Loan Fund might consider a loan with the following terms: Loan Term: 5 months (August - December) Loan Amount: $5,000 (50% of the lowest total pledges and 25% of average) Interest Rate: Prime + 2.0% These illustrations are meant to provide examples of potential loan transactions. Other scenarios may be considered as well. Please contact Sandy Kring at 404-526-1130 or artsloanfund@atlcf.org to discuss your organization's specific situation. Learn More About The Loan Fund: Loan Fund Overview Frequently Asked Questions Application Downloads 1. Loan Fund Application (Word) 2. Loan Fund Application Guide (PDF) Supplemental Downloads 1. Sample Note & Security Agreement (PDF) 2. Resolution Of The Board of Directors - Standard (Word) 3. Resolution Of The Board of Directors - Pre-Approved (Word) 4. Cash Flow Worksheet (Excel) 5. Cash Flow Worksheet (Word) Questions? Contact Sandy Kring at: artsloanfund@atlcf.org
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