Orange County NC Website
Browse       Search
11 <br /> <br />eligibility criteria, a nonprofit organization that meets all four of the KPIs would successfully <br />meet the County Nonprofit Financial Capacity Review. <br /> <br />FINANCIAL IMPACT: The proposed Inter-Faith Council loan of $100,000 would be funded <br />from the Social Justice Fund. The Social Justice Fund balance is currently $328,199. If the <br />Board approves a proposed policy and criteria for subsequent loans, then the Community Loan <br />Fund is the staff recommended funding source and would be funded up to $500,000. <br /> <br />Gary Donaldson made the following PowerPoint presentation: <br /> <br />Proposed Nonprofit Capital Funding Policy and Criteria <br />September 20, 2018 <br />BOCC Regular Meeting <br /> <br />Background <br />• At the June 12, 2018 BOCC Meeting Board Directed Staff to: <br /> Develop Capital Funding Policy for Nonprofits <br /> Establish Loan Eligibility Criteria for Nonprofits <br /> Determine terms for $100,000 loan to Inter-Faith <br />Council for Social Services, Inc. <br /> No indication of funding from the Towns <br /> Identify future funding sources for Revolving Loan structure; Finance <br />recommends Community Loan Fund <br /> <br />Community Loan Fund <br /> Established in FY 2012-13 with $100,000 General Fund balance appropriation <br /> Provide no interest loans for Residents to make water and sewer connections <br /> Loans range from $3,500 to $10,000 with repayment terms up to 10 years <br /> Loans secured by Deed of Trust <br /> Five Loans Outstanding; Tax Office bills each of these residential parcel owners <br />annually <br /> FY 2017-18 additional $200,000 transferred to the fund via Budget Amendment 10 to <br />support additional sewer connection loans <br /> Current balance in the Community Loan Fund is $282,837 <br /> <br />Proposed Nonprofit Capital Funding Policy <br />1) Individual Loans Not to Exceed $100,000 and subject to available Revolving Loan <br />Balances <br />2) Loan Program amount capped at $500,000; no minimum amount stipulation for a <br />nonprofit <br />3) BOCC approved loan agreement; recourse, default and nonprofit bylaw dissolution <br />provisions <br />4) Loans secured by Deed of Trust <br />5) Revolving loan structure to recapitalize County funding source <br />6) Five to ten year maturities at no interest; maturity term contingent on loan amount; and <br />monthly repayments <br />7) Nonprofits make formal written request to County Manager by November each year to <br />coincide with Outside Agency Process and Timeline <br /> <br />Proposed Nonprofit Loan Eligibility Criteria <br />1) Current Outside Agency recipient with three-year average score of at least 85%