Craft3 Provides Bridge Financing to Rural Arts Hub to Expand into Permanent Home

A thriving arts scene shouldn’t just be for big cities. Rural communities deserve arts education and entertainment as well. With this in mind, Painted Sky Center for the Arts was founded in 2018 as a grassroots initiative to establish the first and only art center in rural Grant County in eastern Oregon. The nonprofit started with small rental spaces but quickly expanded to eight departments and needed a larger facility for their expanding arts programming and community services for students and adults.

They decided to purchase a 17,700 square foot former middle school in the town of John Day, central to the community they serve. The purchase was funded through a mix of grants and a crucial $715,000 bridge loan from Craft3 when legislative funding was delayed. The combination of philanthropic grants and Craft3 bridge loans can be complementary and, in this case, it helped secure the building for Painted Sky.

Allison Field, the Development Director for Painted Sky, states, “It’s been fantastic working with Craft3. We were in such a difficult time due to the delayed funding. I didn’t even think about a bridge loan until Cheryl Puddy of the Oregon Community Foundation recommended Craft3. Then everything was straightforward and easy. Our Craft3 lender has been awesome, and the communication back and forth has been great. Getting that loan saved us!”

Painted Sky received two foundation grants from the Oregon Community Foundation and the Roundhouse Foundation for a total of $175,000 that served as the down payment. Later, Painted Sky was awarded a $500,000 grant through the State of Oregon Cultural Resource Economic Fund (CREF), and that grant will pay down most of the bridge loan.

Erin Borla is the Executive Director of the Roundhouse Foundation, a family foundation that supports rural and indigenous communities in Oregon, focusing on funding arts, education, and community development initiatives. Erin praised Craft3’s bridge loans for filling gaps in funding cycles, particularly for projects requiring matching or reimbursable grants.

“I see that frequently, especially when folks in rural places are looking to get funding from state or federal agencies. Sometimes they require a match and the fundraising component takes longer than what the timeline is for the bigger grant from the state or the feds. Bridge capital is always really helpful. It's thrilling to see that Craft3 stepped in.”

With a permanent home, Painted Sky is excited for what’s next. They recently hosted a successful gala with a formal atmosphere, attracting 150 attendees with a lot of sponsors and successful fundraising. Future plans include renovating the gym into a state-of-the-art performance center and developing outdoor spaces for community events, as well as expanding their revenue streams and arts programming.  Painted Sky is also renting out parts of the building to other non-profits and government agencies  creating a long-term stream of unrestricted revenue.

A little over a year after receiving Craft3 bridge financing and purchasing their building, Painted Sky Center for the Arts was able to pay off most of the loan using funding they received from the state.

Both Allison and Erin emphasized how important bridge funding can be for nonprofits and community organizations. Craft3 is proud to offer flexible bridge loans that can catalyze meaningful projects, like this one in partnership with regional foundations. We are also proud to finance projects focused on building essential community services and wealth in underserved rural areas. Supporting Rural and Tribal Economies is one of the three focus areas of our Strategic Plan.