Promissory Program
CCCF offers a low interest loan program for organizations who are facing budget shortfalls and risk reducing programming or services. The loan program is designed for Chaffee serving organizations who have a defined funding source to repay the loan.
Process
Step 1: Candidates meet with a staff member to go over the program.
Contact us at betsy@chaffeecommunity.org to inquire about your eligibility for the program.
During the meeting we will review the program, criteria and your situation to see if the program is a good fit for you.
Candidates in need of an amount within the available funds may be invited to apply by Staff.
Step 2: Candidates complete an application that outlines the following questions:
Organizations interested in applying must be invited to apply by a staff member. Uninvited applications will not be considered. Please note the application and review period will take up to two months.
Why does the organization need the loan? (What factors led to lack of cash flow, what other sources of revenue have you explored, is this to cover a new expense or to maintain existing programs)
How much are you applying for?
What repayment schedule will work for you? (i.e. 6 months, 1 year, etc.)
Describe where the source of the funds to cover repayment.
What is the contingency plan if the funds for repayment do not come through? (i.e. seek other sources, extend loan life and make monthly payments, etc.)
What debt or accounts payable is the organization carrying?
Step 3: Staff Review - Score the application
The Staff Review will score the application based on the following criteria. The criteria is made available to applicants to help you determine if this is a good fit for your financial situation.
Why does the organization need the loan? (Will the loan help maintain a critical service in the community or prevent closure of a community agency, does the organization have other options? 0-5 pts)
How much are you applying for? (Under $25K - 5 pts, $25K-$50K - 2-4 pts, $50K+ 1 pt)
What repayment schedule will work for you? (i.e. 6 months, 1 year, etc.) (3-6 months - 5 pts, 6-12 months - 3-4 pts, longer than a year - 1-2 pt)
Describe where the funds to cover repayment will be coming from? (Committed source: Reimbursable grant, scheduled disbursement, etc. 4-5 pts, Expected Source: donor pledge, annual event 1-3 pts, Insecure Source: first time event, uncommitted grants, unknown 0 pts)
What is the contingency plan if the funds for repayment do not come through? (i.e. seek other sources, extend loan life and make monthly payments, etc.) (0-5 pts based on risk level of contingency plan
What debt or accounts payable is the organization carrying? (No Debt 5 pts, standard debt/payables less than 20% operating budget - 2-4 pts, significant debt/payables 0-1 pts)
Step 4: Finance Committee Review - Vote on the application for approval
The Finance Committee has the authority to approve a loan for any applicant that scores a minimum of 2 pts on any question and a total score of 22 points or more.
Interest to be set by Finance Committee to recoup staff management time and lost interest from current checking account rate.
Step 5: Full Board Approval
If the Finance Committee recommends for approval any application scoring less than 2 pts on any question or total score 21 points or less, the full Board is required to vote to approve the loan.