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<br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br /> <br />ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 20, 2018 <br /> Action Agenda <br /> Item No. 6-b <br /> <br />SUBJECT: Discussion on Proposed Nonprofit Capital Funding Policy and Criteria <br /> <br />DEPARTMENT: Finance and Administrative Services <br /> <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Power Point Presentation <br />December 13, 2016 Agenda Abstract with <br />Outside Agency Policy Documents <br />Excerpt from Approved June 12, 2018 <br />BOCC Work Session Minutes <br /> Bonnie Hammersley, (919) 245-2300 <br />Travis Myren, (919) 245-2308 <br />Gary Donaldson, (919) 245-2453 <br />Paul Laughton, (919) 245-2152 <br /> <br />PURPOSE: To discuss a proposed policy and criteria for providing loans to nonprofits for capital <br />projects and provide direction to staff. <br /> <br />BACKGROUND: At the June 12, 2018 BOCC meeting, a request was made to develop a <br />County nonprofit capital funding policy and loan criteria. This request was based on a pending <br />$100,000 capital campaign request from the Inter-Faith Council for Social Services, Inc. with <br />funds earmarked from the County’s Social Justice Fund. The Towns of Carrboro and Chapel Hill <br />have not indicated any capital funding for the Inter-Faith Council to date. <br /> <br />The proposed funding source for nonprofits that meet the County loan criteria is the Community <br />Loan Fund. The Community Loan Fund is an existing County revolving loan fund that could be <br />expanded and capitalized further through our annual capital financing borrowings. The use of <br />financing proceeds to capitalize a loan fund is a permissible use of proceeds under the North <br />Carolina statutes. <br /> <br />The Community Loan Fund was established in FY 2012-13 through appropriated General Fund <br />balance appropriation of $100,000 to provide no interest loans for residents to obtain water and <br />sewer connections. The loans to residents ranged from $3,500 to $10,000 with a maximum term <br />of 10 years. The Community Loan Fund received additional funding of $200,000 in FY 2017-18 <br />from capital financing proceeds; and there is a current balance of $282,837 earmarked for loans <br />to residents for utility connections. <br /> <br />Staff recommends that the nonprofit loan program be capped at $500,000 annually and no <br />individual loan to a nonprofit entity would exceed $100,000. There would be no minimum loan <br />threshold. If the revolving loan balance remained stagnant with no borrowers over a three year <br />period, then staff would recommend to the Board that the loan balance be repurposed for other <br />County capital project use through a Budget Amendment. <br /> <br /> <br /> <br />3