Orange County NC Website
PIA <br />The proposed nonprofit capital timeline and process would be implemented parallel to the <br />Outside Agency Operating Budget timeline and process as indicated below: <br />November <br />County Posts Applications on Websites <br />November-January <br />Outside Agency Prepares Applications <br />December - January <br />Question & Answer Sessions <br />End of January <br />Outside Agency Applications are Due <br />March-May <br />Application Review & Outside Agency Presentations <br />June <br />Outside Agency Approval by Board <br />July <br />Contracts Executed & Programs Begin <br />Nonprofits seeking a capital loan would make a formal written loan request to the County <br />Manager by the end of November. <br />The Department of Finance and Administrative Services has proposed the following capital <br />funding policy and loan criteria for consideration. <br />Proposed capital funding policy: <br />1) Loans Not to Exceed $100,000 and subject to available Revolving Loan Balances <br />2) BOCC approved loan agreement; recourse, default and nonprofit bylaw dissolution <br />provisions <br />3) Loans secured by Deed of Trust <br />4) Revolving loan structure to recapitalize County funding source <br />5) Five to ten year maturities at no interest; maturity term contingent on loan amount; <br />and monthly repayment <br />Proposed loan eligibility criteria: <br />1) Current Outside Agency recipient with three -year average score of at least 85% <br />2) Clean Audit opinion <br />3) Three years Audited Financial Statements for completion of Nonprofit Financial <br />Capacity Review <br />The Inter -Faith Council has met the proposed loan eligibility requirements and has a three year <br />average score of 86% from its Outside Agency applications. <br />Nonprofit Financial Capacity Review <br />A review of the nonprofits audited financial statements will be used to complete the Financial <br />Capacity Review which assists in determining the nonprofits ability to repay County loans. Key <br />performance indicators (KPI) 1) Quick (Liquidity) Ratio, 2) Debt Ratio, 3) Expense Efficiency <br />Ratio, and 4) Operating Reserves Ratio are often used by public, private entities and financial <br />institutions to determine financial condition and ability to repay short and long -term obligations. <br />