loan program

Objectives of the Loan Program designated for the NGOs are , with the objective to

• provide alternative and available source for funding of NGOs´activities
• support and develop the self-financing activities and business thinking of NGOs.

Some  70 000USD, deposited in the initial phase by the Ford Foundation into the Loan Fund, was increased in 2005 by another 100 000 USD granted by CEE Trust. Since launching the program in 2003, the evaluation committee has approved 62 loans applications totaling amount 740 000 EUR.

We are providing two types of loans – bridging loans (covering a temporary discrepancy between income and expenses) and self-financing loans (helping start or develop NGO business activities). Every NGO registered in Slovakia is eligible to apply for the loans and applications can be submitted at any time. Our approach to all loan applicants is based on individual consultations. Decisions regarding loan provision are made by the evaluation committee. As a minimal standard, we require monthly installments of interest, representing 9,9% p.a. Besides interest, we don’t charge any other administrative fee related to provision of the loan. All installments are paid back to the Fund and can be provided again in the form of loans to new applicants.

Our loan program, provides more than just finances. Through the program, our clients have the opportunity to gain practical experience in the loan process, which can benefit them when they apply for commercial loans. In addition, the ability to pay off the loan contributes to the NGO’s financial credibility.

For more information, please contact Program Coordinator: Monika Smolová, phone: (421 2) 5710 8122, monika.smolova@pontisfoundation.sk.