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11 <br /> 1 <br /> 2 The Inter-Faith Council has met the proposed loan eligibility requirements and has a three year <br /> 3 average score of 86% from its Outside Agency applications. <br /> 4 <br /> 5 Nonprofit Financial Capacity Review <br /> 6 A review of the nonprofits audited financial statements will be used to complete the Financial <br /> 7 Capacity Review which assists in determining the nonprofits ability to repay County loans. Key <br /> 8 performance indicators (KPI) 1) Quick (Liquidity) Ratio, 2) Debt Ratio, 3) Expense Efficiency <br /> 9 Ratio, and 4) Operating Reserves Ratio are often used by public, private entities and financial <br /> 10 institutions to determine financial condition and ability to repay short and long-term obligations. <br /> 11 <br /> 12 The below chart indicates that Inter-Faith Council has the financial capacity to repay a $100,000 <br /> 13 County loan based on the four Financial KPI measurements. For purposes of the proposed loan <br /> 14 eligibility criteria, a nonprofit organization that meets all four of the KPIs would successfully <br /> 15 meet the County Nonprofit Financial Capacity Review. <br /> 16 <br /> 17 FINANCIAL IMPACT: The proposed Inter-Faith Council loan of$100,000 would be funded <br /> 18 from the Social Justice Fund. The Social Justice Fund balance is currently $328,199. If the <br /> 19 Board approves a proposed policy and criteria for subsequent loans, then the Community Loan <br /> 20 Fund is the staff recommended funding source and would be funded up to $500,000. <br /> 21 <br /> 22 Gary Donaldson made the following PowerPoint presentation: <br /> 23 <br /> 24 Proposed Nonprofit Capital Funding Policy and Criteria <br /> 25 September 20, 2018 <br /> 26 BOCC Regular Meeting <br /> 27 <br /> 28 Background <br /> 29 • At the June 12, 2018 BOCC Meeting Board Directed Staff to: <br /> 30 ➢ Develop Capital Funding Policy for Nonprofits <br /> 31 ➢ Establish Loan Eligibility Criteria for Nonprofits <br /> 32 ➢ Determine terms for$100,000 loan to Inter-Faith <br /> 33 Council for Social Services, Inc. <br /> 34 ➢ No indication of funding from the Towns <br /> 35 ➢ Identify future funding sources for Revolving Loan structure; Finance <br /> 36 recommends Community Loan Fund <br /> 37 <br /> 38 Community Loan Fund <br /> 39 ➢ Established in FY 2012-13 with $100,000 General Fund balance appropriation <br /> 40 ➢ Provide no interest loans for Residents to make water and sewer connections <br /> 41 ➢ Loans range from $3,500 to $10,000 with repayment terms up to 10 years <br /> 42 ➢ Loans secured by Deed of Trust <br /> 43 ➢ Five Loans Outstanding; Tax Office bills each of these residential parcel owners <br /> 44 annually <br /> 45 ➢ FY 2017-18 additional $200,000 transferred to the fund via Budget Amendment 10 to <br /> 46 support additional sewer connection loans <br /> 47 ➢ Current balance in the Community Loan Fund is $282,837 <br /> 48 <br /> 49 Proposed Nonprofit Capital Funding Policy <br />