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Kresge suspends $1 million in interest payments for 6 months in response to pandemic

Social Investment Practice

Measure will provide relief to 41 partners

In response to the COVID-19 pandemic and ensuing financial crisis, The Kresge Foundation announced it will waive all interest payments on its portfolio of program-related investments for six months.

The interest waiver period extends from April 1 to September 30, 2020 and will be applied automatically. In total, this policy will generate about $1 million in relief to 41 related partners.

“We know this waiver does not ease all of the financial pains our partners are experiencing due to the financial downturn related to COVID-19,” said Aaron Seybert, managing director of the Social Investment Practice. “But after many conversations with our partners, we believe this is a meaningful and immediate relief that offers some additional latitude for these organizations at this critical time. We’re committed to remaining flexible and responsive and will keep listening to our partners to hear how we can most help.”

In response to COVID-10, the foundation in March offered a suite of supports to grant partners, including the option to convert restricted funding to general operating support, and to retain and repurpose funding for events. Kresge also suspended grantee reporting requirements and site visits for the foreseeable future and committed to expediting grant approvals and amendments.

Kresge also made a Thursday announcement of nearly $3 million in new grants to partners in its focus cities of Detroit, New Orleans and Memphis, in follow-up to a commitment to increased flexibility for all existing grantees nationwide to help them weather the crisis.

In 2015, Kresge’s Board of Trustees made a commitment to fund $350 million in impact investments to expand its mission. To date, the foundation has deployed $292 million of that commitment through program-related loans, guarantees and equity investments. In 2019, it made eight new commitments totaling up to $49 million. Through 2019, the team had 70 active investments with more about five dozen partners. See a full list here.