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Q&A
Overview and discussion of the returnable grant fund for nonprofit providers
1:16:53
·
3 min
Kim Yu and Michael Sedillo provide information about the returnable grant fund, an interest-free loan program available to nonprofit providers facing financial distress. Council Member Julie Won inquires about the fund's capacity and application process.
- The returnable grant fund currently has $30 million available
- The fund's criteria for eligibility have been expanded to include a third category
- Council Member Won expresses concern that the fund's capacity may not be sufficient to meet the needs of providers
Kim Yu
1:16:53
not lost on us that there are nonprofit providers in crisis, in distress, who really need some support, and there are a variety of tools that we've been deploying.
1:17:07
And I'll start just as I mentioned in the testimony, the returnable grant fund.
1:17:14
The returnable grant fund is available to our nonprofit providers based upon a set of criteria that's pretty expansive.
1:17:21
It was expanded not too long ago to include a third category that wasn't previously available.
1:17:30
It is an interest free loan.
1:17:33
Interest free.
1:17:35
It is at a tens of million dollar funding level, and we monitor that loan fund regularly.
1:17:45
We have a small but mighty team at MOX who receives the applications for the loans once they've been vetted by the agencies, and we just look to see that there's going to be some collateral and that there's some leverage to repay the loan, but that is a significant tool that's available to the nonprofit providers if they are if they are in need of cash.
1:18:54
Thank you for highlighting this.
1:18:55
Maybe I'll turn it over to Michael just to start and then I can
Julie Won
1:18:11
$30,000,000 is currently what's available in the returnable grant fund.
1:18:15
We are all about the idea of a returnable grant fund, but we need to expand.
1:18:19
What is the total value of applications submitted to providers?
1:18:22
Do you know?
1:18:23
And how much has been granted up to date?
1:18:25
And what plans does the city have to increase the available grant fund?
1:18:28
Because $30,000,000 for the $87,000,000 of credit that people have had to take out is not even half.
1:18:36
And we're also getting reports from nonprofit providers on reports that providers are encountering extreme administrative barriers when applying for that funding itself.
1:18:47
What steps is the city taking to reduce these barriers and ensure applications are processed smoothly and not kick back?
Michael Sedillo
1:18:58
Sounds great.
1:18:59
Let's do that.
1:18:59
Thank you so much Chairwon.
1:19:01
You know I really do just want to make sure folks understand because I think I actually, when I visit non profit providers, they oftentimes don't even know this fund exists.
1:19:10
And I want to just make sure folks know because it has been a life lifeline to many, many non profit providers.
1:19:15
Interest and service free loans and that third category that, Director Yu just talked about, is huge.
1:19:20
It was previously, as I understand, just for unregistered contracts and so now they've expanded the use and so people should think about that.
1:19:27
The one thing I'll say is if there is ever an issue or perception of administrative delays or it's, you know, even stuck with the agency for whatever reason, please give them my information, and we will work with our partners at MOX and the chief nonprofit officers at the agencies to ensure that it is expeditiously reviewed.
1:19:47
Now, you know, we do want to be clear that sometimes providers will submit a loan application for, for example, something that is already an invoice in the system.
1:19:55
For us that's not an appropriate use of the loan fund, right?
1:19:58
It would be just a much simpler, probably a faster process too if they actually just get the invoice paid out.
1:20:04
And that's why the partial payment directive that mocks it is so important and the invoice backlog work they did just a couple months ago is so important as well.
1:20:11
So anyways, if there are issues please let me know directly and myself and director Yu will have our teams look into it immediately.