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<br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br /> <br />ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 13, 2018 <br /> Action Agenda <br /> Item No. 8-e <br /> <br />SUBJECT: Nonprofit Capital Funding Loan Agreement <br /> <br />DEPARTMENT: Finance and Administrative Services <br /> <br />ATTACHMENT(S): INFORMATION CONTACT: <br />September 20, 2018 Abstract <br />Nonprofit Capital Loan Agreement <br />Template <br /> <br /> Bonnie Hammersley, (919) 245-2300 <br />Gary Donaldson, (919) 245-2453 <br /> <br /> <br /> <br /> <br />PURPOSE: To approve the attached Nonprofit Capital Loan Agreement Template for providing <br />loans to Nonprofits for capital projects. <br /> <br />BACKGROUND: On September 20, 2018 the Board of County Commissioners approved a <br />Capital Loan Program and Funding Policy to assist Nonprofit Agencies on their respective <br />capital campaigns. The revolving loan program will be funded with $500,000 and a part of the <br />County’s Community Loan Fund. <br /> <br />The Nonprofit capital loan program will be capped at $500,000 annually and no individual loan <br />to a nonprofit entity would exceed $100,000. There would be no minimum loan threshold. <br /> <br />The attached Nonprofit Capital Loan Agreement template will be used as the security document <br />for providing loans to Nonprofits that meet the County capital loan criteria. <br /> <br />Key terms of Loan Agreement: <br /> <br />1) Loan Amount Borrowed <br />2) Loans secured by Deed of Trust and Promissory Note <br />3) Five to ten year maturities at no interest; maturity term contingent on loan amount <br />and useful life of asset <br />4) Monthly repayment schedule <br /> <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 /> <br />October / November Outside Agency Prepares Capital Request <br />November 30 Capital Loan Requests Due to the County Manager <br />and Finance and Administrative Services <br />Dec. – March Request Review & Outside Agency Presentations <br />June Outside Agency Approval by Board <br />July Loan Agreements Executed <br />1