PRI FAQs

If you are considering applying for a PRI outside the range of most of our PRIs, that generally won't count against you. We suggest you contact us (link to Paul) before submitting your inquiry.

Typically, no. To keep our administrative expenses at a minimum, MMT prefers to disburse PRI funds in one lump sum.

The Meyer Trust adapts its PRI program terms to suit each transaction funded. The following represents the range of terms for Meyer Trust PRI investments, which to date have taken the form of loans:

• Loan duration: 1-7 years
• Repayment increments: Interest is repaid in quarterly installments, sometimes together with principal. Some loans feature a laddered principal payment that is paid annually. A few loans feature a balloon repayment of the entire principal at the end of the term.
• Interest rate: 2.5% annual interest (reviewed and reset, if needed, April 1)
• Securitization status: PRIs are secured whenever feasible.
• Recourse status: Full recourse to the borrower.
• Origination fees: MMT charges no origination fee.
• Other expenses: In instances when real property (i.e., land, buildings) is secured, the applicant typically pays expenses for the title search, lender's title insurance policy and recording/filing of the deed of trust. In instances when personal property is secured (i.e., equipment, other assets), the applicant typically pays the UCC (Uniform Commercial Code) filing fee. Additional expenses – such as legal, appraisal and consulting fees – are the applicant's responsibility. Depending on the loan, MMT may elect to secure both real and personal property.

Generally, no. MMT has established a set rate to be fair and consistent with all applicants. That said, if you have compelling circumstances that require a lower rate, describe them in the Initial Inquiry and we will consider your request.

Yes. The Meyer Trust has issued PRI and grant funding simultaneously to support a project. When completing your Initial Inquiry, be sure to include information regarding the size, terms, and repayment strategy for the PRI you are requesting in addition to indicating the amount requested in the form of a grant.

We currently use one form to elicit information about Responsive Grants and PRI requests. If you are seeking a PRI, please be sure to include the following information in your Initial Inquiry:

• PRI amount
• MMT interest rate
• Proposed repayment terms noting timing of payments of principal and interest
• Securitization opportunities
• Repayment strategies (preferably primary and secondary strategies). If repayment includes future grants, points of contact (name, email address, phone number) should be identified.

Yes. Our experience indicates that proposals that identify a specific amount, interest rate, timeframe and repayment strategies have undergone more rigorous planning within an organization.

Seeking collateral, when possible, is a guiding principle in prudent lending and in accordance with our value of stewardship. While obtaining collateral is a tool in our due diligence, we also recognize external factors can negatively affect repayment and unexpected borrower problems may emerge. In such cases, MMT works with organizations to develop a reasonable repayment plan. We do not aggressively seek to foreclose on the loan to the harm of the nonprofit. Should a nonprofit cease operations and liquidate its assets despite its best efforts, having a secured interest enables MMT to receive a fair share of the proceeds to further our grantmaking and other investments in the greater nonprofit community.

All initial inquiries that come in by the 15th of each month are batched together and reviewed by the program officers, who identify questions, strengths, concerns, etc. of each proposal. Summaries of the proposals written by program officers go to the trustees at their next month's meeting, where they decide which applications will be investigated further. Applicants are notified of the decision right away. Applicants whose inquiries move to further study are invited to submit a full proposal. They generally have three weeks from the date of notification to do so.

Those approved for further study are assigned to a program officer. After the proposal and supporting financial documentation is received, the program officer arranges a site visit. The purposes of the site visit are to establish a face-to-face relationship, view the organization and/or project "in person," follow up on questions submitted ealier, and gather additional information as part of the due diligence process. The timing of the site visit depends on the program officer's workload and MMT's internal calendar. Within a month or two of the site visit, the program officer submits a summary report to the trustees. At their next meeting, the trustees discuss the proposal and make a decision about whether to fund it. Applicants are usually notified of the decision within a day of the trustee meeting.
The average time for a final PRI decision is about four to six months from the time the initial inquiry is submitted.

No. That said, independent audited statements provide MMT with assurance that an organization's finances are presented fairly in all material respects. Should we request a full proposal from your organization, we will request current year financial statements (balance sheet and income statement) and financial statements for the three prior years. For prior years' statements, audited statements are preferred, if available. For audited statements, we will request a copy of the management letter, your responses to the management letter and adusting journal entries (AJEs) for the most recently completed fiscal year.

We are open to receiving an application. However, a PRI may not be the best fit for your particular situation. We suggest you contact us before submitting an inquiry in a case like this.

Generally, no. In fact, your proposal may be stronger. Prior to submitting a written inquiry, you should inform the other lenders about your MMT application to ensure you will be complying with their loan covenants.

Generally, no. We would examine your ability to repay your current debt and the additional PRI debt. In particular, we would determine whether taking on the PRI has the potential of weakening your financial condition.

Prior to submitting a written inquiry, you should inform your lenders about the MMT application to ensure you will be complying with their loan covenants.

No. However, you will likely incur legal costs for your attorney to review the loan documents. In most cases, nonprofits receive probono legal advice through their board or other sources, which should result in minimal or no out-of-pocket legal expenses.

When real property (i.e., land, buildings) is secured, the applicant typically pays expenses for title search, lender's title insurance policy and recording/filing of the deed of trust. When personal property is secured (i.e., equipment, other assets), the applicant typically pays the UCC (Uniform Commercial Code) filing fee.

Depending on the loan, MMT may elect to secure both real and personal property.

Depending on the PRI, disbursement may take up to two months after the award date due to the time involved to prepare loan documents.

Generally, no. Financing of public sector projects is best fitted to government agency budgets and taxpayers in communities served by those agencies.

Yes. There is a promissory note. The covenants are typical of what you would see in commercial promissory notes, as well as requirements for the agency to maintain administrative, program and fiscal stability, among others. In addition, the borrower will submit a certificate of commercial insurance and corporate resolution and closing certificate authorizing the loan. Should we request a full proposal from your organization, we would discuss these requirements as part of our due diligence.

Program Officer Paul Reich is primarily responsible for the analysis of PRI funding requests. Although you need not vet a PRI proposal before submitting a letter of inquiry, you are welcome to contact him if you have questions about the PRI program: by email at paul [at] mmt [dot] org or by phone at 503-228-5512.