Nonprofit Financial Hub

When your nonprofit applies for a loan, preparation makes all the difference. Lenders want to see that your organization is financially stable, well-managed, and has a clear purpose for the funds. The stronger and more organized your application, the more confidence you inspire, and the better your chances of approval.

Below is a comprehensive checklist of what lenders might request for a nonprofit loan application, along with insights from B Generous, the nation’s #1 nonprofit lending marketplace, on how to make the process faster and easier. Not every loan application requires all these documents but submitting a clear and complete application helps lenders make credit decisions efficiently.

1. Organizational Details

Before lenders can review your financials, they need basic organizational information, including:

• Legal name and any “doing business as” (DBA) names
• Contact details (address, phone, email)
• Employer Identification Number (EIN)

These details verify your organization’s identity and ensure consistency with IRS and state records.

2. Purpose of the Loan

Clearly state why you’re applying and how the funds will be used. Whether it’s to finance a new program, bridge grant funding, expand your facilities or refinance existing debt, a well-articulated purpose helps lenders understand your mission and impact.

3. Financial Documents

Your financial records are central to proving repayment ability. Lenders may ask for:

• Up to 3 years of financial statements (balance sheet and income statement)
• Your current year-to-date financial statements
• Your forecast and budgets for the current and future year
• IRS Form 990s for the most recent 2 or 3 years if you are required to file

These should ideally be prepared by an accounting firm or CPA and presented in standard format that lenders are used to reviewing. Up-to-date, accurate financials show fiscal responsibility and transparency.

4. Organizational Documents

These establish your legal structure and nonprofit status and are essential to satisfying the compliance checks required by all lenders. Document requested may include:

• Articles of Incorporation
• Secretary of State filings in your home state if required by law
• IRS 501(c)(3) determination letter (if applicable)

5. Board of Directors

Lenders often assess governance strength. Provide:

• A list of current board members and their affiliations
• Any relevant bios or leadership credentials

A strong, diverse board signals good oversight and credibility.

6. Operational Information

Help lenders understand who you are and how you operate:

• Overview of your mission, programs, and beneficiaries
• Any impact measurement you have
• Details on key staff and management experience
• Organizational chart if available

This context helps lenders see your stability and capacity to execute funded projects.

7. Collateral (If Applicable)

For secured loans, list any assets that could serve as collateral, such as:

• Real estate
• Vehicles or equipment
• Receivables or pledged donations
• An executed contract to provide services

While many nonprofit loans are unsecured, providing collateral can strengthen your application.

8. Debt Schedule

If your organization already carries debt, lenders will want to review:

• Outstanding balances
• Interest rates and monthly payments
• Lien positions or encumbrances

This helps them understand your total debt burden and repayment capacity.

9. Fundraising Information (if donations are your major revenue source)

Demonstrate your ability to generate revenue through philanthropy and grants:

• Major donors and grant funders
• Pending grant applications or commitments
• Fundraising history and future projections

Strong fundraising activity demonstrates financial sustainability.

10. Credit History

If your nonprofit has borrowed before and repaid the loan(s), provide:

• Details of previous loans
• Payment history
• Any credit reports or lender references

A positive borrowing track record builds trust and may help you secure better terms.

11. Strategic or Project Plan

If the loan supports a specific initiative (e.g., facility expansion, capital campaign, or bridge loan), include:

• A comprehensive project or strategic plan
• Timelines, milestones, and expected outcomes

This helps lenders understand how the loan contributes to measurable impact.

12. Personal Guarantees (If Required)

For smaller nonprofits or those without a strong financial history, lenders might require personal guarantees from board members or executive directors. Even if a personal guarantee isn’t required, offering one can strengthen your application. If a business, foundation, or individual with strong credit is willing to guarantee the loan, include their details in your application.

13. Legal Documents

Include any documents tied to the loan’s purpose, such as:

• Lease or purchase agreements
• Contracts
• Vendor or construction agreements

14. Bank Statements

Many lenders request 6–12 months of bank statements to assess cash flow consistency and reserves.

15. References

List references from key stakeholders such as:

• Past lenders or financial partners
• Major donors
• Strategic partners

These endorsements can support your credibility and financial reputation.

16. Additional Information

Each lender may have unique requirements. Be responsive and provide any requested follow-up information quickly to keep the process moving.

B Generous Insights: How to Simplify the Process

Preparing a comprehensive loan package is essential but it doesn’t have to be overwhelming.

At B Generous, we’ve streamlined the nonprofit loan application process to save you time and stress. We know exactly what documents our lenders require and in what format. Our team helps you organize your materials, strengthen your application, and present your nonprofit in the best possible light.

By simplifying every step, we help you secure mission-aligned financing on nonprofit-friendly terms, so you can focus on what matters most –  advancing your cause.

Ready to Get Started? Visit bgenerous.com to prequalify your nonprofit for funding and access America’s largest lending marketplace built exclusively for mission-driven organizations.