These questions have emerged from one on one conversations and the Information Session held on Oct 20, 2020 (see recording of Info Session below). This document will be updated up until October 26. Please check this blog for updates to the FAQ.
Who can apply to host the Revolving Loan Fund?
The Foundation is looking for Community Development Financial Institutions (CDFIs) or partnerships that include a CDFI (i.e. CDFI and a neighborhood association). The Advisory Committee will be looking at BIPOC leadership within the organization and evidence of positive impact in North Minneapolis.
Does the CDFI need to be located in North Minneapolis?
While it would be a preference, an applicant is not disqualified if not located in North Minneapolis. Other criteria will be considered to make a selection decision.
Do loans coming out of the Revolving Loan Fund need to go to the Northside?
Yes. This Revolving Loan Fund was designed to benefit BIPOC led commercial real estate projects in North Minneapolis, exclusively. This is consistent with the Foundation’s place-based strategy and its commitment to fund ideas/projects by/for/with Northside residents.
Are there expectations about the size of loans coming out of the Revolving Loan Fund?
No. The investment committee will determine the size of loans. The Committee will need to consider that The Foundation has committed a $1M seed investment in the fund and is actively seeking additional investment. They will need to weigh size v. number of loans given the current $1M available funds.
What is the timeline for reviewing and selecting the Revolving Loan Fund host?
The application will close at 12am on Nov 2 (deadline 11:59pm on Nov 1). A decision is expected by the end of November.
Are there expectations for when the first loans will be available?
This will be dependent on the CDFI that is selected and their capacity to activate the Revolving Loan Fund. It is preferred that it will be operational by Q2 of 2021.
What are the loan terms?
The Foundation intentionally did not include the terms for the $1M Program Related Investment. What we were very specific about are the structural elements relating to the Revolving Loan Fund (refer to RFP for details). Ultimately, as applicants we want you to let us know what would be the ideal PRI terms in order to meet the requirements of the Revolving Loan Fund as described.
Will there be another RFP to host another Revolving Loan Fund?
No. This is a one-time opportunity. The selected host will be required to report on work and impact annually. If goals are not being met, there could be a scenario where we seek another host in the future.
Watch Recording of Information Session from October 20, 2020.