Amalgamated Offers New Service to Non-Profit Clients
Amalgamated Capital, the New York-based commercial finance division of Amalgamated Bank, announced the launch of Non-Profit Funding Advance, a first-of-its-kind service for its growing set of non-profit clients. The new tool, which will allow non-profits to immediately secure funding from state grants they have been awarded, launched this month.
When non-profits are awarded grants from states, they often have to wait to receive the funds they were awarded. Non-Profit Funding Advance gives non-profits access to the bulk of the funds right away so they avoid disruptions and have the funding necessary to operate smoothly.
After a non-profit is awarded a grant from the state, Amalgamated buys the voucher and provides the non-profit with 70 percent of the funds up front. When the state distributes the full amount of the voucher to Amalgamated, the bank then pays the balance to the non-profit, minus a 1% per month fee.
Greg Walker, director of Amalgamated Capital, oversaw the creation and structure of the program.
“Many non-profit clients told us they were facing budget shortfalls because of the wait time associated with receiving voucher funds,” said Walker. “In response to these concerns about cash flow, we developed this product to ensure a reliable and consistent source of funding. Retail and manufacturing firms have access to similar services that prevent disruptions and it’s essential that we keep vital community programs up and running.”