Alumni Loan Fund
The Alumni Loan Fund, in partnership with Education Affiliates Federal Credit Union and with support from the Andrew Mellon Foundation and the Theo Westenberger Estate, allows alumni artists in all disciplines to apply for loans of $2,500 - $10,000. The program provides loans for the creation of artist-generated projects and/or products. It serves our alumni artists by providing access to capacity-building assistance while promoting effective financial management practices to help individual artists:
• Develop your financial management skills
• Learn to use loans strategically
• Position yourself for future financial relationships
As an extension of our established Artist Services, we seek to provide loans to a constituency of our alumni awardees at any stage of their career, to provide cash flow and/or bridge funding for new projects initiated by former awardees who have completed their Creative Capital supported project.
Our experience has taught us that most projects take from one to three years to complete. The loan terms reflect this. You may use these loan funds to receive special training, buy supplies and equipment, hire help or expertise, document, promote, market and otherwise procure whatever may be necessary to create new creative work and build a more sustainable practice.
Other Benefits of the Loan Fund
If you have a project funded by the Loan Fund, you may:
• Request a stakeholder meeting for the project premiere
• Update your Creative Capital artist page to promote the new work;
• Have your project listed in Creative Capital’s quarterly newsletter with a notation stating that the project “was funded in part through a loan from the Alumni Loan Fund”
• Have access to our large network of consulting professionals for a modest fee
• Sell artist books, CDs, DVDs or objects in the Creative Capital online store (in development);
• Attend periodic Creative Capital workshops, webinars and networking opportunities, including regional events organized by alums and active awardees
This financial support is NOT an award; these are loans that must be repaid in 12 to 36 months.
Loan requests will be reviewed by Creative Capital and Education Affiliates using a number of criteria: sound professional record, project plan, ability to repay, financial health and the ability to use a loan as a strategic tool.
To receive a loan from Education Affiliates, you must join the credit union and there is a $25 fee to join. Beyond that, there are no fees charged on the loans other than interest and loan insurance. Creative Capital charges no fee to cover administration.
By supporting our alumni artists with funds derived in part from the Theo Westenberger estate—the result of Ms. Westenberger’s own successful creative career—the loans reflect the Westenberger Trust’s goal of helping to establish precedent setting support for artists funded by a philanthropic artist—an artist helping artists.
If you want to know more about this program, contact us with your questions at [email protected]
To be eligible to apply for a loan, you must be a Creative Capital awardee (either as an individual or as part of a collaborative team) whose previously funded Creative Capital project has been completed and who is currently engaged in an arts project in any discipline.
Frequently Asked Questions
A. FAQs about the Loan Fund Program
B. FAQs about the Creative Capital Loan Inquiry Form
C. FAQs about the Education Affiliates FCU loan application
A. FAQs about the Loan Fund Program in general:
Where does the money come from?
This program is funded by a grant from The Andrew W. Mellon Foundation and a bequest from the Theo Westenberger Estate.
What is the Education Affiliates?
Education Affiliates FCU is a member-owned, not-for-profit financial cooperative association dedicated to providing quality financial products and services delivered in a professional, courteous and timely manner. Unlike other financial institutions which need to generate profits in order to satisfy stockholders, Education Affiliates return excess earnings to their members in the following forms:
• Competitive dividend rates paid on savings and investment accounts;
• Competitive interest rates on loans; and
• The addition of valuable new products and services.''
What are the fees for the program?
To receive a loan from Education Affiliates, you must join the credit union. There is a $25 fee to join. Beyond that, there are no fees, only the interest that Education Affiliates FCU collects (current rate: 4.65%). Creative Capital charges no fee to cover administration.
Who can apply?
Creative Capital alumni awardees who have completed their Creative Capital supported project and who do not already have an outstanding loan with the Loan Fund may apply at any stage of their careers.
How large a loan can I apply for?
The loan amounts to be made available will range from: $2,500 to $25,000.
What may I use the loan for?
You may use loans to receive special training, buy supplies and equipment, hire help or expertise, document, promote, market, and otherwise procure whatever may be necessary to create new creative work and build a more sustainable practice.
Who makes the decision about whether or not I get a loan?
Education Affiliates and Creative Capital jointly approve the loans.
What if I get sick or hurt and can’t pay back the loan?
Creative Capital requires any artist who is approved for a loan to purchase insurance against default due to death or disability offered by the Education Affiliates. This insurance premium for this disability and life insurance is offered at .26% on the unpaid balance of the loan.
What if I default on the payments for some other reason?
If The Education Affiliates FCU sees any problems developing with a loan, they will notify you and work with you to correct the problem. Creative Capital is available to meet with you and/or offer to attend any meetings required by Education Affiliates to help advise you regarding the renegotiation of the loan.
Will I have to give Creative Capital my personal financial information?
No. Creative Capital will not ask you for any specific financial information. Education Affiliates FCU manages all the loan-processing services, which includes receiving and processing required documents, running credit checks, evaluating applications, closing the loan, approving and processing draw requests and warrants, determining payment schedules, as well as monitoring loans and collections.
Will I have to give the Education Affiliates FCU all my personal financial information and allow them to run a full credit check?
Yes. They need the information to determine your credit history and ability to pay back the loan, and to manage the loan and monitor payments.
Does getting a loan entitle me to any additional artist services?
Yes. Artists whose projects are funded by the Loan Fund may:
• request a stakeholder meeting for the project premiere;
• update their Creative Capital artist page to promote the new work;
• have their project listed in Creative Capital’s quarterly newsletter with a notation stating that the project “was funded in part through a loan from the Alumni Loan Fund”;
• have access to our large network of consulting professionals for a modest fee;
• attend periodic Creative Capital workshops, webinars and networking opportunities, including regional events organized by alums and active grantees.
B. FAQs about the Creative Capital Loan Inquiry Form:
How much can I request?
You may request from $2,500 to $25,000
How should I answer the question: Do you have an existing relationship with a venue likely to present this work?
You may or may not list venues likely to present the work. How you answer this question will not effect your chances to be approved for a loan.
Does my Total Project Budget & Amount Raised need to be final or can it change?
We understand this is a work in progress and that budget figures are subject to change. Please answer as best you can at this point in the process.
C. FAQs about the Education Affiliates FCU loan application:
How should I answer the question: Type of loan requested?
You are applying for a personal loan so select “Personal” in the pull down menu. The other categories do not apply under this program.
How should I answer the question: Amount requested?
You may request a loan for any amount between $2,500 and $25,000.
How should I answer the question: Reason for Loan?
The reason for your loan is to complete an artistic project. Please specify how you intend to use the money.
How should I answer the question: Repayment?
The pull down menu of choices include: Payroll Deduction, Cash, Automatic Payment, Military Allotment, Other. You may use any of these options available to you.
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