Prudential Loan Fund FAQs
The following are frequently asked questions and answers on the Prudential Loan Fund.
What is the Prudential Loan Fund?
The Prudential Loan Fund provides bridge loans to arts organizations funded by the Geraldine R. Dodge Foundation. In 2020, loans are meant to help organizations get through short-term budget gaps caused by the delay of New Jersey State Council on the Arts grants because of the COVID-19 pandemic.
Who might use it?
The Prudential Loan Fund is open to arts nonprofits with budgets of $1 million or less that have received funding from Dodge.
If you meet these criteria and your organization receives funding from New Jersey State Council on the Arts you may apply for a loan.
When can I apply?
There will be one application period for the Prudential Loan Fund in 2020 ending on August 14. Please check the Prudential Loan Fund website for upcoming deadlines.
How much of a loan can I request?
The Loan Fund will be limited to this one round to offset some portion of first round NJSCA payments. Loan amounts may be capped based on demand.
What are the terms of the loan?
All loans are interest free with no fees and require full repayment of principal up to one year after the loan is disbursed.
What kind of documentation is required with the application?
You’ll need to submit a brief overview of the reason for the loan, the organization’s most recent audited financial statement and/or 990, a cash-flow analysis for one year from July 1, 2020, 2019 NJSCA grant award letter, and a board authorization for the loan.
Applicants are also required to attend the Prudential Loan Fund information session and cash-flow workshop led by facilitator Hilda Polanco. In addition to an overview of the fund, the workshop covers strategic financial management, nonprofit financial health, cash-flow projections, and demystifying financial reports.
The information sessions are typically held within a month of the application deadline.
How do I apply?
Applications are available to attendees of the Prudential Loan Fund information session. If you have any questions, you may email Richard Simon at email@example.com.
What is the loan approval process and other considerations?
Applications and supporting documents are reviewed by a committee of internal and external members.
Loans will be reviewed through our Equity Framework and/or greatest financial need as priorities. Loans may not be funded due to limited availability of dollars.
Foundation staff will contact the applicant if additional information or clarification.
If the loan is approved, a loan documentation form will be sent to the applicant prior to the release of the funds.
Every effort will be made to expedite the application process to enable applicants, if approved, to receive loan funds in a timely fashion.
When did the Prudential Loan Fund start?
The Prudential Loan Fund was founded in 2015 with a $1 million endowment from the Prudential Foundation. It is administered through the Geraldine R. Dodge Foundation, which for more than 40 years has been the largest private funder of the arts in New Jersey.
Who can I contact for more information?
If you have any other questions, please contact Richard Simon, Senior Program Associate, Arts and Education.