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The TMF Microloan Program has $700,000 in Microloans Available to Churches and Nonprofits in 2021

TMF Microloan Program

Purpose

This one-time $1 million TMF Microloan Program was created in response to the COVID-19 pandemic and has been expanded to include capital needs arising from damages from the February 2021 ice storm. The program is designed to efficiently serve the growing needs within United Methodist churches and nonprofit organizations by quickly providing access to funding for the unique and challenging circumstances ministry leaders are facing from these crises. Special consideration will be given to ministries serving under-resourced communities and to churches with smaller budgets.

Thanks to a generous endowment distribution approved by the TMF Executive Committee, TMF was able to launch this new program. As of February 2021, $700,000 remains. Once funds have been depleted, this program will come to an end.

Guidelines for February Ice Storm Needs

The TMF Microloan Program will make small ($2,500 - $25,000), short-term (24-month) microloans at a rate of 2% interest for repairs and other capital needs arising from the February ice storm. Repayment of these loans is deferred for 6 months based on date of approval. Churches and nonprofits must meet these guidelines to apply:

(1) Open to qualified 501(c)(3) United Methodist churches and United Methodist-related nonprofit organizations in TX and NM (individuals, private foundations, etc. are ineligible). Priority will be given to organizations with budgets of $500,000 or less.
(2) Balanced budget for one of the last two years (2019 and/or 2020).


Guidelines for COVID-19 Needs

The TMF Microloan Program will make small ($5,000 - $25,000), short-term (24-month) microloans at a rate of 2% interest. Repayment of these loans is deferred for 6 months based on date of approval. Churches and nonprofits must meet these guidelines to apply:

For churches:

(1) Open to qualified 501(c)(3) United Methodist churches in TX and NM (individuals, private foundations, etc. are ineligible).
(2) Microloan amount may not be more than 5% of total regular giving for 2020 (Example: To get the minimum $5,000 loan, a church would need to have at least $100,000 in offerings/donations in 2020).
(3) Percentage of apportionments collected for 2019 and 2020 will be reviewed.

For nonprofits:

(1) Open to qualified 501(c)(3) nonprofit organizations in TX and NM (individuals, private foundations, etc. are ineligible).
(2) Microloan amount may not be more than 5% of total regular giving for 2020 (Example: To get the minimum $5,000 loan, a nonprofit would need to have at least $100,000 in offerings/donations in 2020).


Funding

TMF reserves the right to request additional information or follow-up as needed.

While merit is evident in nearly every application received, not all applications will qualify to receive a TMF microloan. Once a TMF microloan application has been declined, related materials will not be carried over for future consideration.

Apply

If you have questions, contact Krystol Wheeler kwheeler@tmf-fdn.org | 512-583-1952. All applications and supporting documentation will be submitted online through the TMF website. You will be prompted to set up an account in order to apply, if you do not already have an account. Interested ministries should apply as soon as possible.