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1. 1. What is the New Capital Loan Program available for Nonprofit/Outside Agencies?

The New Capital Loan program was approved by the Board of County Commissioners on September 20, 2018. The revolving loan program will be funded with $500,000 and be a part of the County’s Community Loan Fund. The Community Loan Fund is an existing County revolving loan fund that could be expanded and capitalized further through our annual capital financing borrowings.

2. 2. What is the County’s Capital Funding Policy for Nonprofits?

• Loans Not to Exceed $100,000 and subject to available Revolving Loan Balances
• Loans secured by Deed of Trust
• Revolving loan structure to recapitalize County funding source
• Five to ten year maturities at no interest; maturity term contingent on loan amount; and monthly repayment

3. 3. What is the timeline for applying for a County capital loan?

The proposed nonprofit capital timeline and process is similar to our current Outside Agency Operating Budget timeline and process as indicated below:

October / November	Outside Agency Prepares Capital Request
November 30	Capital Loan Requests Due to the County Manager and Finance and Administrative Services
December - March	Request Review and Outside Agency Presentations to the County Manager and respective staff
June	Capital Loan Approval by the Board
July	Loan Agreements Executed

4. 4. Do I need to be a currently County funded Nonprofit (Outside Agency) to qualify for this new Capital Loan program?

Yes, your organization must have received County operating funds as an Outside Agency for a minimum of three years to qualify for the new Capital Loan program.

5. 5. What are the other loan eligibility criteria?

Loan eligibility criteria:

1.  Current Outside Agency recipient with three-year average score of at least 85%
2. Clean Audit opinion (Third Party Independent Auditor – Most Recent Audit)
3. Three years Audited Financial Statements for completion of Nonprofit Financial Capacity Review

6. 6. What is reviewed in the Financial Capacity Review?

The County’s Department of Finance and Administrative Services will need to review three years of audited financial statements to complete a Financial Capacity Review. County staff will further review four Key Performance Indicators (KPI) 1) Quick (Liquidity) Ratio 2) Debt Ratio 3) Expense Efficiency Ratio and 4) Operating Reserves ratio are often used by public, private entities and financial institutions to determine financial condition and ability to repay short and long-term obligations.

7. 7. Does the Capital Loan Program only apply to building/renovation expenses?

The program is not limited to bricks and mortar assets, furniture and fixtures, equipment and vehicles, with a useful life of 5 years and greater, are eligible for the Capital Loan Program.

8. 8. What is the minimum and maximum allowable amount for loan applications?

There is no minimum amount. The maximum amount is $100,000.

9. 9. How many loan requests may an agency submit in the same fiscal year?

One loan request which may include multiple items is accepted annually.

10. 10. How many loan applications can an agency have open at one-time meaning can loans overlap – or is there a maximum number of loans an agency can have open?

As long as the agency can meet the County’s Financial Capacity Review as indicated above, there is no cap on outstanding loan requests.

11. 11. Our agency is located outside of Orange County but we serve Orange County residents – do I qualify for the Capital Loan Program?

No, for a capital loan your agency must be located in Orange County.

12. 12. What are the required financial documents for a capital loan request?

Three Years of Audited Financial Statements by an Independent Certified Public Accounting firm.

13. 13. What are the payoff terms?

The maturity terms are determined by the classification of the asset being financed as well as the loan amount.

14. 14. Who should I contact if I have any questions regarding the Capital Loan Program?

You may email your questions regarding the Capital Loan program and policy to outsideagencies@orangecountync.gov to the attention of Finance Director Gary Donaldson and/or Budget Management Services Analyst/Outside Agency Manager, Allen Coleman.