Independent Sector, a coalition of charities and foundations, today again urged Congress to consider creating a program to provide bridge loans to nonprofit groups that are facing delays in getting paid by state and local governments.

“Without access to short-term funding, these nonprofits, whose work is critical to meeting the needs of the communities they serve, will be forced in the coming months to lay off more staff and close essential facilities, and some may shut down altogether,” the group said in a written statement to the Senate Banking Committee.

The committee held a hearing today on proposals to help small businesses get credit. Independent Sector said lawmakers should consider allowing banks that received federal bailout money to fulfill their obligations under that program by making bridge loans to nonprofit groups. The money would go to organizations that have contracts or grant commitments from government bodies and would be repaid when the governments resume their normal payment schedules.

Independent Sector said governments are falling behind on their payments because they are facing severe budget shortfalls and that the problem will likely get worse once economic-stimulus money dries up. It estimated that at least $15-billion in payments to nonprofit groups are now delayed or at risk of being delayed.

More information is available on the group’s Web site.