Urgent Alert – Senate Bill 376 – Funding the NIMBL Loan Program for Nonprofits
Senate Bill 376, introduced by Senator Cheryl Kagan, will be heard next Tuesday, Feb. 2, in the Senate Budget and Tax Committee. This bill will provide funding for the “NIMBL” Program – the Nonprofit, Interest-Free, Micro Bridge Loan (NIMBL) that allows no-interest loans up to $25,000 to nonprofits with state or local government contracts or grants, to deal with cash flow issues caused by payment delays at the beginning, or during the execution of the grant or contract. The state gets repaid out of contract /grant proceeds. These loans are made through the MD Dept. of Commerce and have a very quick turn-around.
We consistently hear complaints about payment delays, and quarterly invoicing practices that delay initial payments for up to 4 or 5 months on some grants. This program was created to assist organizations with these types of issues — but it remains underfunded. Since the beginning of the program, there has only been $187,000 in the revolving loan fund, severely limiting the number of possible loans at any one time. Senate Bill 376 would allow the fund to reach $1 million. Until agency payment practices are reformed (and we’re working on that) an adequately funded NIMBL program is the next best answer.
BUT We need your support now for Senate Bill 376 — please share your payment delay experienced with the B&T Committee and your support for increasing the NIMBL revolving loan fund.
If you haven’t submitted written testimony yet this year, go to the General Assembly homepage’s virtual tutorials and scroll down to the short YouTube video “Witness Sign Up” (at the bottom right) — Testimony must be submitted by uploading a PDF version of your statement – between 10 am and 3 pm THIS FRIDAY.
You can also email your support directly to members of the B&T Committee.
Please share your comments or written testimony with us – at email@example.com