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2 <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 County Posts Applications on Websites <br /> November-January Outside Agency Prepares Applications <br /> December-January Question & Answer Sessions <br /> End of January Outside Agency Applications are Due <br /> March-May Application Review & Outside Agency Presentations <br /> June Outside Agency Approval by Board <br /> July 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 />