Working capital loans and more for Midwestern 501(c)(3)s.

When grants or donations won’t get your nonprofit funds in time, a business loan could help cover the upfront costs of a project. But most lenders only work with for-profit businesses.
That’s where Propel Nonprofits can help. It’s one of the few lenders out there that specializes in nonprofit business financing. It’s only available in a handful of states, however, so not every nonprofit can benefit.


Min. Amount


Max. Amount


Product Name Propel Nonprofits working capital loans
Min. Amount $20,000
Max. Amount $600,000
Loan Term 5 months to 15 years
APR 6.5% to 6.5%
Requirements Be an established and registered as a nonprofit and be based in Minnesota, Wisconsin, Iowa, North Dakota or South Dakota.

Application Criteria

Be an established nonprofit.
Must be based in Minnesota, Wisconsin, Iowa, North Dakota or South Dakota.
Be a registered nonprofit.

First, do I qualify?

To qualify for a business loan from Propel Nonprofits, your business must:

  • Be a registered 501(c)(3).
  • Have an established operating history.
  • Be located in Minnesota, Wisconsin, Iowa, North Dakota or South Dakota.

What is Propel Nonprofits?

Propel Nonprofits is a community financial development institution (CDFI) that specializes in nonprofit financing. It offers secured working capital term loans from $20,000 to $600,000 designed to help nonprofits keep programs afloat or expand when you don’t have enough steady money coming in.

APRs start at 6.5%, and term loans come with a $500 closing fee. Terms vary widely, from 0.42 years to 15 years. The specifics of your loan depend on factors like your nonprofit’s business model, what collateral your business has to offer, how much regular cash you have coming in and future projects.

What makes Propel Nonprofits business loans unique?

Propel Nonprofits is one of the few lenders that even offers business loans to nonprofits, let alone specializes in them. Since nonprofits have different needs than for-profit businesses, Propel works to tailor features of your loan such as the terms, repayment plan and loan amount to your unique organization.

Other loans offered by Propel Nonprofits

In addition to working capital term loans, Propel Nonprofits offers the following types of financing to eligible 501(c)(3)s:

  • Lines of credit. Get access to credit limits from $20,000 to $600,000 to help make up for regular cashflow gaps. On top of the $500 closing fee, these come with a 1% annual fee.
  • Short-term facility projects. Short-term loans from $50,000 to $1 million for making improvements, repairs, buying equipment or covering expenses while you’re waiting for money to come in from a campaign.
  • Long-term facility mortgages. Mortgages from $50,000 to $1 million to buy, renovate or build real estate.

What are the benefits of borrowing from Propel Nonprofits?

  • Loans made for nonprofits. Propel understands your organization’s unique needs and works to help you get the right kind of funding.
  • Flexible terms. With terms ranging from 0.42 years to 15 years — in some cases even longer — Propel’s financing can work for the very short or very long term.
  • Tailored to your needs. Propel doesn’t believe in one-size-fits-all loans. Instead, its lending team works with your organization to make sure you get the right kind of funding.

What to watch out for

  • Limited state availability. Propel only works with nonprofits in five Midwestern states.
  • Not available to startups. You can’t use a loan from Propel Nonprofits to start a nonprofit or help it through the early stages.
  • Fees. Propel Nonprofits charges a closing fee of $500 when your business applies for a loan. Lines of credit also come with a 1% annual fee.

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