Orange County NC Website
<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 />November County Posts Applications on Websites <br />November-January Outside Agency Prepares Applications <br />December-January Question & Answer Sessions <br />End of January Outside Agency Applications are Due <br />March-May Application Review & Outside Agency Presentations <br />June Outside Agency Approval by Board <br />July Contracts Executed & Programs Begin <br /> <br />Nonprofits seeking a capital loan would make a formal written loan request to the County <br />Manager by the end of November. <br /> <br />The Department of Finance and Administrative Services has proposed the following capital <br />funding policy and loan criteria for consideration. <br /> <br />Proposed capital funding policy: <br /> <br />1) Loans Not to Exceed $100,000 and subject to available Revolving Loan Balances <br />2) BOCC approved loan agreement; recourse, default and nonprofit bylaw dissolution <br />provisions <br />3) Loans secured by Deed of Trust <br />4) Revolving loan structure to recapitalize County funding source <br />5) Five to ten year maturities at no interest; maturity term contingent on loan amount; <br />and monthly repayment <br /> <br />Proposed loan eligibility criteria: <br /> <br />1) Current Outside Agency recipient with three-year average score of at least 85% <br />2) Clean Audit opinion <br />3) Three years Audited Financial Statements for completion of Nonprofit Financial <br />Capacity Review <br /> <br />The Inter-Faith Council has met the proposed loan eligibility requirements and has a three year <br />average score of 86% from its Outside Agency applications. <br /> <br />Nonprofit Financial Capacity Review <br />A review of the nonprofits audited financial statements will be used to complete the Financial <br />Capacity Review which assists in determining the nonprofits ability to repay County loans. Key <br />performance indicators (KPI) 1) Quick (Liquidity) Ratio, 2) Debt Ratio, 3) Expense Efficiency <br />Ratio, and 4) Operating Reserves Ratio are often used by public, private entities and financial <br />institutions to determine financial condition and ability to repay short and long-term obligations. <br /> <br />4