Capital to Accelerate Nonprofit Impact: A Step-by-Step Guide to IFF’s Lending Process March 20, 2026

The process begins with a consultative conversation focused on understanding the organization’s mission, goals, and financing needs to determine whether IFF’s loan products are the right fit. At this point, there are two primary reasons why an organization might not be a match for IFF’s lending services: 1) the organization is not within our target market, and 2) IFF does not have a product that matches its needs.

IFF’s target markets include nonprofit organizations with at least a three-year operating history, two years of audited financial statements, and an independent board of directors. IFF primarily serves 501(c)(3) nonprofits and mission-aligned borrowers working in or serving under-resourced communities or people with disabilities across the Midwest, including IA, IL, IN, KS, KY, MI, MO, OH, and WI.

In addition, IFF works with some for-profit borrowers, including affordable housing developers, businesses expanding access to healthy food in under-resourced neighborhoods, and real estate developers with strong nonprofit tenancy or community benefit components.

IFF’s primary loan products can be found here. As part of the Qualification process, IFF will assess if a loan product matches the organization’s needs and, at a high level, if they have the financial wherewithal to support loan repayment.

If the opportunity has been qualified, the organization is asked to complete an application and submit supporting documents, including:

• Three years of audited financial statements or tax returns
• Interim financial statements
• Current operating budget
• Project sources and uses
• Impact data
• Organizational documents, including 501(c)(3) letter, articles of incorporation, and bylaws.

IFF’s online loan application takes approximately 30–90 minutes to complete. Applicants complete and upload documents through a secure portal called SmartSheet. Once submitted, IFF’s team reviews the materials to assess the organization’s financial position and ability to repay the loan while sustaining its mission-driven work.

Additional documentation may be required depending on the project and loan type. Organizations interested in applying are encouraged to connect with IFF’s Capital Solutions team with questions about eligibility, target market, or application requirements.

Once the application has been submitted, an IFF lender reviews the organization’s documents to assess the proposed project and organizational capacity, identify potential risks, and understand factors that support repayment. During this stage, the lender may follow up with questions or request additional information related to the organization’s governance, financial management practices, funding streams, leadership structure, or project plans.

Additional documentation may also be required depending on the loan type. For construction projects, for example, applicants are asked to provide a list of project partners, such as the general contractor, architect, attorney, and owner’s representative. Organizations seeking a bridge loan may also need to submit a capital campaign schedule and three-to-five-year financial projections. Frequent communication between the nonprofit and lender is common throughout this process.

Time to complete this stage: Typically between one and three weeks

Once Evaluation is complete, a recommendation for approval is made to an internal loan committee. If the loan is approved, the organization receives a commitment letter that includes the primary loan terms. This letter needs to be signed within 15 days of approval, or the commitment expires. If a loan is not approved, IFF works with the organization to identify alternative pathways forward, including a revised structure. It might also include guidance on a path to future approval or recommending other lenders who may be a better fit.

Time to complete this stage: Typically one week

Once a loan has been approved by IFF’s loan committee, the borrower is introduced to IFF’s closing team. The closing team will let the organization know what additional documents and actions are needed via a closing checklist posted in SmartSheet. If the borrower has an attorney, IFF recommends involving them in the closing process.

For construction loans, required documents include an executed general contractor contract, final construction breakdown, payment and performance bond, and builders’ risk insurance. For acquisition loans, documents include a final executed purchase and sales agreement, an environmental report, insurance, a zoning verification letter, and surveys.

For real estate loans, a title company helps verify that the property is free of legal or financial issues before the transaction is finalized.

IFF drafts a loan agreement that outlines the terms of the loan, including payments, maturity date, and reporting and other requirements. After a closing date is determined, documents are signed, and funds are released.

Time to complete this stage: Up to 12 weeks

Once a loan closes, our Partnership Management team becomes the primary point of contact for the borrower for the duration of the loan term. The team builds relationships with borrowers through site visits and regular check-ins and works in partnership to answer questions, explore opportunities, and resolve challenges.

Touchpoints with this team vary depending on the type of loan and the borrower’s needs, with a focus on maintaining a strong, ongoing relationship. For longer-term real estate loans, the partnership management team typically visits with the borrower, at minimum, annually, often in conjunction with reviewing and discussing updated organizational and financial information. This relationship-centered approach helps partnership managers stay connected to borrowers’ evolving opportunities, emerging challenges, and long-term goals. The team may also facilitate connections across IFF’s network to help organizations build strategic relationships and connect with peers.

For bridge loans, the team connects more frequently—often monthly—to stay aligned on the timing of funding and to support a smooth path toward repayment.

Across all loan types, the Partnership Management team prioritizes staying closely connected to borrowers’ day-to-day realities. When organizations encounter challenges that affect their ability to meet loan obligations, the team works collaboratively with them to understand and problem solve. These approaches are grounded in an understanding of the specific sector, geographic, economic, and operational realities, with the goal of supporting long-term stability and mission success.

Financing can play an important role in helping nonprofits strengthen operations, expand programs, and invest in facilities that support long-term community impact. By combining flexible capital with sector expertise and relationship-centered support, IFF works alongside organizations throughout every stage of the lending process. The goal is not simply to provide a loan, but to partner with mission-driven organizations to move their vision forward with confidence and sustainability.