Loan Program

Available to CFSA General Liability and/or Workers’ Compensation pool program member district agricultural association (DAA) fairs, county government fairs, and nonprofit fairs (when the borrower is a public entity such as the county), the Loan Program could be one of CFSA’s most under-the-radar 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 $1.5 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; a public capital improvement project including new construction; and refinancing of public capital improvement projects.
    All capital projects must be inspected by the California Construction Authority.
  • 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┬áBranch of Fairs & Expositions.
  • Recommendation from CFSA’s chief financial officer.
  • Completed loan agreements.

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

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