Loan Program

Available to CFSA General Liability and/or Workers’ Compensation pool program member district agricultural association (DAA) and county government fairs, the Loan Program could be one of CFSA’s most overlooked opportunities.

In 1992, CFSA’s board of directors set aside funds from risk pool reserves to fund an Equipment Loan Program. In years since, the program has grown steadily – in its use, its funding and in its scope.

In 2013, the Equipment Loan Program became simply, the Loan Program to better reflect the program’s expanded scope and added line-of-credit option. The Loan Program now offers $1.25 million in available funding.

Loans can be used for:

  • Purchasing and/or leasing equipment.
  • Refinancing a purchase or lease of equipment. Equipment is to be of a fixed asset nature, not consumables. The loan amount is limited to the cost of the equipment plus finance charges, interest and legal services.
  • Funding of a public capital repair project.
  • Funding of a public capital improvement project including new construction.
  • Refinancing of public capital improvement projects. Repairs are for fixed, real property on a fairgrounds and will be inspected and approved by CFSA’s Construction Department.
  • Line of credit to fund operations. The borrower must be a DAA or a department of a county or other public entity within the state of California. The line of credit is to fund fair operations for a short-term period not to exceed 12 months.

The line of credit must be brought to a $0 balance for 30 days prior to renewal. Advances may be made from time to time and in amounts the borrower chooses with the total not to exceed a fixed principle amount. Promissory Note and Security Agreements accompany the line of credit agreement, and the Promissory Note is to be secured by a security interest in and to certain revenue sources of the borrower. The borrower must purchase Revenue Protection Insurance. A monthly payment of interest is required and there is no penalty for pre-payment.

 

Interest Rates:

For equipment loans, public capital repair loans, and public capital improvement loans, interest rates are calculated:

  • 6 points above the current Local Agency Investment Fund (LAIF) interest rate for $0 – $15,000 borrowed.
  • 5 points above the current LAIF interest rate for $15,001 – $50,000 borrowed.
  • 4 points above the current LAIF interest rate for $50,001 and above borrowed.

Interest Rates for lines of credit are:

  • 4 points above the current LAIF interest rate.

 

Loan applications are to include:

  • Current year budget authorization and financial statements from two prior years.
  • Current financials (income statement and balance sheet).
  • Recommendation from the¬†Branch of Fairs & Expositions.
  • Recommendation from CFSA’s controller.
  • Payment plan (from the application).
  • Completed loan agreements.

For an application or more information about the Loan Program, please contact Raechelle Gibbons, CFSA’s controller, (916) 263-6143, rgibbons@cfsa.org or Rebecca Desmond, CFSA’s deputy executive director, at (916) 263-6161, rdesmond@cfsa.org.

Loan requests from non-profit fairs that are members of the CFSA pools may be considered under special circumstances. Please contact Rebecca Desmond, (916) 263-6161 or rdesmond@cfsa.org.

For more information about this program, please contact Raechelle Gibbons.