Nonprofits Need Loans, Too!
We believe that some of the biggest impact we can have is to support the nonprofits in our communities. From arts to workforce development, education to waste reduction, our nonprofit clients are a critical force for change.
We lend to nonprofit organizations to help them with a variety of needs, including financing inventory, making improvements in the workplace, repaying high interest debt, purchasing equipment or inventory, working capital, and purchasing a building.
As of December 2016, approximately almost one fifth of our lending went to nonprofit organizations. These loans — almost exclusively in California, Oregon, and Washington — have supported human rights, education and youth development, climate policy, environmental conservation, urban farming, fitness, workforce development, affordable housing, performing and fine arts, makers, journalism, community finance, and more.
The Context: Nonprofit Lending
Loans are often difficult for nonprofits because most banks and small business lenders do not provide loans to these organizations. We are proud to support our nonprofits by providing loans that are reasonable for the organization and for us. The provision of loans to nonprofit organizations is a unique and significant part of our social and environmental impact.
In fact, loans to nonprofits accounted for 19% of our commercial loan commitments on December 31, 2016. This is well above the proportion of our economy that nonprofits account for by many measures. Nonprofits
comprise 5% of the country’s gross domestic product, and account for 8-12% of employment in our three states.
The Lives Impacted
Our Oakland-based nonprofit client Civicorps has a profound impact on the lives of youth in Oakland and surrounding areas through their education and workforce development programs.
Definitions and Methodology
The data above refers to all Beneficial State clients registered as nonprofit organizations with the Internal Revenue Service.