Posted at 9:49 AM on June 27, 2011
by Paul Tosto
Filed under: Health
As we wait for the next round of Minnesota budget talks today, we're seeing more tangible consequences of a potential state government shutdown -- Some nonprofits that depend on getting paid by the state are taking out loans to stay open for clients if the state government stops.
While the group won't disclose the names of those that got loans, they are organizations that provide primary care, services for crime victims and mental health services in the Twin Cities and rural Minnesota, says the fund's Kate Borman.
"These nonprofits are making plans to continue to provide some level of services in the face of the loss of state payments for the duration of a shutdown," she said. "All five organizations have also reduced expenses, cut staff hours and pay, and have considered which of their services are "essential" to their clients and community."
We have many more applications in process for about $2 million available to lend for these purposes."
The fund loans money to nonprofits in need and also provides financial advice and training to nonprofit boards in Minnesota. The group's been warning nonprofits for weeks to prepare for life in state government shutdown.