Minnesota Afterschool Advance
Loan Fund

Venn has partnered with Youthprise on a powerful new initiative called "Minnesota Afterschool Advance" (MAA), which has the potential to eventually unlock up to $250 million per year in afterschool funding for ~125,000 low-income Minnesota families and their ~250,000 children by helping them take full advantage of the longstanding but broadly underused Minnesota Education Tax Credit (METC).  The METC provides families a 3-to-1 match on the dollars they spend on eligible afterschool services like music lessons and tutoring, up to $1,000 per child per year.  However, families must pay for services up front and then wait to be repaid until they get their tax refund, sometimes more than a year later.  Many low-income families do not have the cash flow for this model to work.  MAA eliminates this barrier by creating a loan pool to issue 0% loans to the families allowing them to pay for the activities.  

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Venn has established an internal loan fund for MAA, from which Venn will make 0% loans of up to $1,000 per child low-income students and families enrolled in 2023.  The loan proceeds will pay for eligible afterschool services such as tutoring, music lessons, and arts enrichment for participating students.  After the families file their taxes in early 2024, the State of Minnesota will repay the loans to Venn directly.  Venn is offering its donors an opportunity to recommend that their Venn Account dollars be used to capitalize the 2023 MAA loan fund. 

Recipient Name:  Venn Foundation - MN Afterschool Advance 2023 Loan Fund
Beneficiaries: Low-income students across Minnesota
Amount Raised:  ~$800,000
Overview of Investment Terms:

  • Unsecured, 0% loan from Venn Accounts to the 2023 MAA loan fund

  • Repayment to Venn Accounts supporting this PRI will be determined entirely by what repayments the MAA loan fund receives from the State of Minnesota through the METC credit assignment process.  Venn will not seek to recapture loans directly from families through separate legal action or collection activities.

  • The MAA loan fund will repay participating Venn Accounts pro rata based on their original contribution to the entire MAA loan fund with whatever loan principal has been received from the State of Minnesota on an annual basis in 2024 and 2025.

  • The most that any participating Venn Account can possibly receive back from this PRI is its original principal.  There is no opportunity for positive return.  The financial return on this PRI is expected to be negative. 

  • It is important to note that even negative financial returns allow Venn Account dollars to be recycled again and again.  For example, even if the MAA loan fund returns to Venn Accounts only $0.80 for every $1 loaned, this means that each dollar can be used in this same way five times before being depleted.  Compared to a one-time grant for a low-income student to access services, MAA offers powerful impact leverage.

  • Thanks to a generous operating grant from another philanthropic partner, there are no PRI administrative fees for Venn Accounts that recommend their dollars be invested in the 2023 MAA loan fund.