By Cathy Sorenson, Loan Officer for The Loan Fund

A nonprofit isn’t in business to enrich its shareholders, but it still needs revenues and incurs operating expenses while pursuing its community service mission. It, too, can experience cash flow problems or require considerable cash to fund a capital project or expanded services.

When that happens, the nonprofit faces many of the same choices a for-profit business does, though it draws from different funding sources.

While a for-profit business can offer investors a chance to share in the company’s fortunes by buying stocks, for example, a nonprofit relies on a stakeholder who’s motivated by public interest rather than self-interest. Continue reading →

By Justin Hyde, Accion loan officer

When Claire Ann Barr-Johnson applied for a loan with Accion in 2013 to expand marketing for her Albuquerque-based equine therapy nonprofit, her primary goal wasn’t the money. She wanted the mentoring and advising that comes with being an Accion client.

Barr-Johnson’s for-profit company, Clinical Solutions, generated enough revenue to provide an income. But she wanted advice about how to build Horses for Healing into her central occupation — especially in light of a new, $50,000 contract with the state Behavioral Health Services Division to work with veterans who are struggling with post-traumatic stress disorder. Continue reading →