Program Related Investments (PRI) are investments made by private foundations that support charitable activities while potentially generating some financial return. Because we are a public benefit corp with a social and environmental mission, we have been able to receive PRIs.
Reminder: Information regarding our grants and PRIs is confidential. We are also not allowed to talk about foundation PRIs except as specified in the contract and with the foundation’s consent.
October 2024: JLL Foundation PRI Loan
JLL Foundation is the corporate foundation of Jones Lang LaSalle, the giant real estate conglomerate. The JLL PRI is a $300k, 3-year zero-interest balloon term loan. There are no payments required prior to the due date of the full amount of the loan. The principal payment is due either when we raise 10x the loan amount or at the end of the term.
February 2024: Kresge Foundation PRI Loan
Kresge Foundation is the family foundation of founder of Kmart. It is one of the largest private foundations in the US and is based in Troy, MI.
| Loan Amount | $500,000 |
| Interest Rate | 3% |
| Term | 5 years |
| Use | Product development to support national expansion |
| First Payment | 6/30/2024 First (interest-only) payment12/31/2024 Principal installment and accruted interest |
| Prepayments | Allowed, no fee or penalty, no less than $100k |
The amount and schedule are based on our expected CPC transactional revenue, though the loan is unsecured, so the obligation is general and the CPC revenue is not actually encumbered.
Related Documents
- Amortization Table
- Documents in Google Drive, including Loan Agreement
Financial Covenants
We are obligated meet the following financial metrics during the life of the loan. These are tracked in Causal as of April 2024.
- NOI > 0, where 85% of G&A and 100% of R&D are excluded from expenses
- Liquidity: 30-days cash on hand, net of R&D. 30 days of operating cash defined as total expenses from current year budget less, R&D costs, divided by 12
- Total equity will not fall below -$400k
In addition, we monitor cash-on-hand against principal outstanding, just for our own peace of mind:
- 80% of outstanding principal amount against our cash balance
Reporting Requirements
See Exhibit E of the agreement.
Please note: Foundation PRIs are concerned with social impact, not just the loan performance. Treat them like grants: lead with impact when reporting.
All reports will be submitted via email as standard documents and sent to:
Elizabeth Davidson, Program Manager: ecdavidson@kresge.org
Julie Burlingame, Analyst, Social Investment Practice: jburlingame@kresge.org
Kresge’s Reporting Inbox: SocialInvestments@kresge.org
| Report | Due Date |
|---|---|
| Quarterly | |
| Unaudited financial statements | Within 45 days after quarter end |
| Quarterly certificate (Exhibit G) | Within 45 days after quarter end |
| Compliance worksheet (Exhibit F) | Within 45 days after quarter end |
| CPC contract revenue report | Within 45 days after quarter end |
| Annual | |
| Following year operating budget | By November 30 of current year |
| Financial statements | Within 120 days after fiscal year end |
| Annual certificate (Exhibit G) | Within 120 days after fiscal year end |
| Compliance worksheet (Exhibit F) | Within 120 days after fiscal year end |
| Loan proceeds report | Within 120 days after fiscal year end |
| CPC contract revenue report | Within 120 days after fiscal year end |
| As Needed | |
| Documents delivered to Board | Within 10 days |
| Material litigation notices | Promptly |
| Material adverse effect notices | Promptly |
| Loan purpose change notices | Promptly |
| Default notices | Promptly |
| One Time | |
| Final loan proceeds report | Within 120 days after loans repaid |