Bridging the Gap: How Craft3 Supports Businesses with Bridge Financing

Bridge financing is short-term financing designed to provide immediate capital while businesses await more permanent funding through a capital campaign, grant or other reimbursements, or a contract in which you are paid only upon work completed. This type of financing can be a lifeline, offering the assets needed to cover expenses, complete projects, or seize growth opportunities.  

Craft3 offers bridge financing to nonprofits and businesses, especially those that align with our mission, to help create a Pacific Northwest that is thriving, just and empowered. The following five examples highlight the different ways we can support businesses with tailored bridge financing solutions.

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Bridging Government Reimbursements

When Lilac Learning Center faced delayed reimbursements from Medicaid and federal Employee Tax Credits, Craft3 provided bridge financing to help them maintain operations. With immediate funds, Lilac was able to provide uninterrupted services for families and children relying on their essential programs which serve children who do not thrive in traditional learning environments. Craft3’s support also created space for Lilac’s CEO Jeffrey Kalles and CFO Tim Gallagan to reevaluate their business model and pivot to one that is more sustainable.  

Learn more about how Craft3 supported Lilac Learning Center’s expansion with three loans over five years.  

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Bridging Grant Funding

Painted Sky Center for the Arts, a vibrant rural arts hub, received grant funding to expand its facilities. However, the timeline for receiving these funds created a financial gap. Craft3 provided bridge financing, allowing Painted Sky to begin construction immediately. This proactive support accelerated their expansion and provided a permanent home for their programs.

The Center’s continued growth stands as a testament to how bridge financing can empower organizations to fulfill their missions without delay. Read the full story.

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Bridging Grant Disbursements and Construction Costs

Nest Community School in Spokane offers early childhood education with a unique focus on outdoor and physical play. Situated on a 50-acre parcel, they provide high-quality, nature-based child care to 50 students. In 2024, the school received a $200,000 grant from the Department of Commerce to expand their capacity by adding sprinklers and opening the second floor of their facility to more students. But as construction costs rose and new safety requirements emerged, Nest faced a significant funding gap that threatened to derail the project and the grant itself.

Craft3 provided a bridge loan to cover delayed grant disbursement, support construction, and ensure staffing and equipment needs could be met. Without this financing, the state funds could have gone unclaimed. Now, Nest Community School is on track to expand and serve 30 additional children.  

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Bridging a Capital Campaign

When the 226-acre Keystone Farm and Forest property—one of the Whidbey Camano Land Trust’s highest conservation priorities on Whidbey Island—was being marketed to developers by closed bid, it was an extraordinary opportunity. A Craft3 bridge loan allowed the Land Trust to act quickly and purchase it for permanent protection, giving them time to secure grant funding and private contributions.  

The $9.1 million acquisition, the largest in the organization’s history, is being repaid through state and federal grants and funding from the U.S. Navy. Located near Coupeville, the preserve includes historic farmland, 165 acres of forest, and shoreline vital for salmon migration. Future plans include regenerative agriculture, habitat restoration, and public access that fosters community learning and connection with nature.

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Bridging Inventory Costs

Craft3 has worked with multiple businesses to provide bridge financing for inventory costs. Growing companies often find themselves needing to take on dramatically more inventory. This can lead to timing mismatches between purchasing inventory and receiving customer payments, especially if there is a delay between delivery and payment.  For businesses experiencing growth opportunities that require significant inventory investment upfront, we offer financing that allows you to capitalize on these opportunities without depleting working capital.

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Our Lasting Impact

By offering flexible, mission-driven bridge financing, we help non-profits and small businesses navigate uncertainties, sustain operations, and seize opportunities.

“It’s been fantastic working with Craft3,” Allison Field, Director of Development at Painted Sky Center, says. “We were having a difficult time due to the delayed funding. I didn’t even think about a bridge loan until the Oregon Community Foundation recommended Craft3. Then everything was straightforward and easy. Getting that loan saved us.”

Learn more about bridge financing and how to get started today.