A.R.T./NY Teams with SeaChange to Provide Loans for New York City Arts Nonprofit Organizations

The Alliance of Resident Theatres/New York (A.R.T./NY) has teamed up with SeaChange Capital Partners to create NYC Bridge Funding for the Arts (NYCBFA), providing short-term bridge loans for New York City-based nonprofit arts and culture organizations that are members of A.R.T./New York. The program launches at a time of tremendous financial turmoil for arts nonprofits. It brings resources and financial support to the field when they’re most needed, and helps organizations navigate moments of cash shortage to achieve long-term sustainability.

The partnership between A.R.T./NY and SeaChange was an immediate fit. The two organizations have combined their strengths to build a loan program that is responsive to organizations’ needs and offers guidance toward reaching fiscal stability. A.R.T./NY brings to the table its comprehensive knowledge, built on 50 years of service to the field, of helping theaters produce, while SeaChange offers its experience aiding nonprofits across fields grappling with complex financial and organizational challenges. SeaChange has been a trusted and valuable partner to many A.R.T./NY member organizations and embraces the unique needs and opportunities of the field.

The 6- to 12-month term cash flow loans are available to A.R.T./NY member organizations, with below-market interest rates of 5%-7% and a closing fee of 1% of the loan amount. Loans can be made for up to $50,000. They are not meant as emergency lifelines, but rather as support mechanisms to help cover short-term gaps. SeaChange will manage loans, with both organizations contributing an equal portion of lending funds. As such, the partnership provides A.R.T./NY with more extensive resources to reimagine a loan program they had offered for 25 years—to best serve A.R.T./NY members and staff.

A.R.T./NY Co-Executive Director Risa Shoup says, “Borrowing money is anxiety-provoking, especially for theaters whose collateral can be non-traditional. This program gives lendees a more intimate relationship with the lender—importantly, a nonprofit lender who has helped myriad organizations and understands the attendant anxieties. Lendees get a financial education, technical assistance, and a thorough understanding of whether it’s a feasible decision to make.”

A.R.T./NY Co-Executive Director Talia Corren says, “It is especially important to A.R.T./NY that our members feel supported right now, especially while making challenging decisions related to financial health, both long-term and short-term. Going to a commercial bank can feel more vulnerable, or like its own barrier—especially if you’re concerned that commercial lenders aren’t considering an organization’s best interests or full circumstances. With A.R.T./NY as the first point of contact, we understand the contours of what people are going through. SeaChange has a long track record of sustaining a healthy nonprofit sector and being deeply connected to social impact through financial literacy, so this partnership allows us to offer a transparent, informed assessment of when loans will be helpful. Had we not found such a values-aligned partner, we wouldn’t be launching this program.”

SeaChange Senior Associate Minji Kim says, “A.R.T./NY and SeaChange have a shared vision for how to begin conversations about loans with nonprofits and how to address their needs. We start off by really trying to understand the situation, how they got there, how their board is navigating that challenge—and asking: is a loan a good idea for them right now? One of our core values is to do no harm, so we work closely with nonprofits to figure out a payment schedule or term that makes the most sense to them. We’re really excited to team with A.R.T./NY to help nonprofits through our first arts and culture-focused loan fund. We look forward to gaining more insight from our partnership into the specific needs of theater organizations in this precarious moment.”

About SeaChange

SeaChange Capital Partners (“SeaChange”) helps nonprofits work through complex financial and organizational challenges by providing grants, loans, analysis and advice. In addition to NYCBFA, SeaChange manages several other funds that provide flexible, impact-first loans to New York City nonprofits across all sectors and sizes. More information about SeaChange is available at www.seachangecap.org.

About A.R.T./NY

A.R.T./New York is committed to its mission of serving and strengthening the complete identity of the nonprofit theatre community throughout New York City and State. Since its founding in 1972 by a small collective to promote community and collaboration across a budding field, A.R.T./New York has become an essential pillar of a vibrant member community of 520+ theatres. From neuro-diverse artist collectives to BIPOC-led theatres, A.R.T./NY’s membership mirrors the diverse identities that comprise the population of New York City and State. A.R.T./New York is the single membership organization serving the full breadth of New York City and State’s not-for-profit theatres. A.R.T./NY serves every “organism” in the theatre’s complex ecosystem by providing cash grants, free educational services, subsidized rehearsal, office and theatre space, and advocacy that is responsive to the needs of its constituents and ensures sustainable, vibrant, nonprofit theatre throughout New York.

A.R.T/NY’s new shared leadership structure emphasizes that stakeholders are investing in the organization itself—its mission, and, by extension, its future—rather than any one individual. This model gives Co-Executive Directors equal standing within and outside the organization, along with the autonomy to determine shared responsibilities and to jointly make major decisions.