Item 8-e - Nonprofit Capital Funding Loan Agreement

Browse Search

4 Executive Director 1 Community Home Trust 2 PO Box 2315 3 Chapel Hill, NC 27515 4 919-967-1545 ext. 307 5 6 Commissioner Price asked if the IFC were going to leverage grants next year. 7 Bonnie Hammersley said she and Chair Dorosin met with the leaders of the capital 8 campaign who said the level of funding commitments needed to reach a certain level before 9 they start leveraging grants. 10 Chair Dorosin said there is the option of a zero percent loan, and if the Board were in 11 support of one, it could start with this, and could possibly convert it to grant funding, or a 12 forgivable loan, after further discussion. He said he does not want the Board’s decision to have 13 an adverse effect on the IFC tonight. 14 Commissioner McKee said a forgivable loan is the same as a grant. 15 Chair Dorosin said the Board could put some conditions on it, such as forgiving the loan 16 if IFC fails to raise the additional funding after a certain time period. He said if IFC could raise 17 the money than it would pay back the loan. 18 Commissioner McKee said he is concerned about going down that path, and if the 19 Board is going to provide a grant then that should be done from the get go. He said loans that 20 are potentially forgivable are always forgiven. He said the Board put the policy in effect, and it 21 does not need to do a work around tonight without having further discussion. He said there are 22 too many agencies that would want, and be worthy of, this same treatment. 23 Commissioner Jacobs said he would be more comfortable if staff would bring back 24 some criteria of what the zero interest loans would look like at the next BOCC meeting on 6/19. 25 He said he would be inclined to give IFC one third of what it is asking for. He said the County 26 should not go into this thinking it will waive the amount of the loan, since it makes it 27 psychologically harder for IFC to raise funds. 28 Chair Dorosin said he likes the idea of a matching grant, as opposed to outright cash 29 without conditions. 30 Commissioner Burroughs said she agreed with Commissioner Jacobs about the 31 psychological impact on fundraising when knowing a loan can be potentially forgiven. She said 32 she still supports discussing this topic further in the fall. 33 Commissioner Rich asked if any other local government entities have committed to the 34 IFC campaign. 35 Bonnie Hammersley said the Town of Chapel Hill received a request, which she thinks 36 the Town is honoring, but she will find out. 37 Jackie Jenks, IFC, thanked the Board for even considering this item, and said the IFC is 38 working with Chapel Hill on a potential funding source. 39 Commissioner Rich asked if those funds would be a grant or loan. 40 Jackie Jenks said a grant. 41 Chair Dorosin asked if the Town of Carrboro has made a commitment. 42 Jackie Jenks said IFC has not received a commitment from Carrboro, but the Town has 43 offered to waive some fees and the IFC may share its parking with the Town. 44 Chair Dorosin asked if there was a timeline in place. 45 Jackie Jenks said IFC would like to start construction a year from now, but would need 46 to have all of the funds committed in advance, and the IFC is looking to get the $5.3 million 47 secured soon. She said the IFC has surpassed the 50% mark, which was needed in order to 48 apply for some funding from various foundations. She said a loan will not help IFC reach the 49 $5.3 million required to build, but IFC would consider it as a bridge loan allowing for 50 23