CEDLI | Working Capital Initiative

WORKING CAPITAL INITIATIVE FOR COMMUNITY NEEDS
Funded by The David and Lucile Packard Foundation, the CEDLI Working Capital Initiative for Community Needs provides accessible and affordable short-term working capital for qualified eligible nonprofit organizations operating in the child care and health fields to address their short-term cash flow needs. Under the Working Capital Initiative for Community Needs, CEDLI provides short-term financing to qualified nonprofits for either a) specific government contract expenditures eligible for reimbursement or b) specific grants receivable from identified public or private funding sources. Combining loan capital with technical assistance and financial expertise, the goal of the CEDLI Working Capital Initiative for Community Needs is to pioneer a statewide market in California for the financing of short-term working needs for creditworthy nonprofits.

Summary of Terms
Loan Amount	$50,000 up to $500,000 in a one year annually renewable Revolving Line of Credit.
Availability	Available in advances with maturities of ranging from 30 days to a maximum of 180 days.
Advance Rate	CEDLI will finance up to 80% of the amount of eligible contract or grant receivables.
Collateral	UCC 1 general lien on organization assets.
Interest Rate	One Percent below Wall Street Journal Prime Rate, floating with the Prime Rate. Subject to a minimum interest rate of 4.0% per annum.
Repayment Terms	Advances repayable at maturity; structured to match expected cash flow from specific contract receivable or specific grant receivable being financed.
Loan Fees	0.5% of the Revolving Line of Credit Amount, payable upon signing of Loan Agreement.


Borrower Eligibility
Target Borrowers	Nonprofit child care providers and child care facilitators (including resource and referral agencies, pre-school, after-school) and community health clinics.
Tax Status	Tax-exempt, charitable organization under Section 501(c)(3).
Time in Business	Minimum of three years of successful operating history.
Financial Criteria	Positive net asset position or net fund balance; 1 year projected operating budget demonstrating debt service capacity.
Service Delivery	Quality service delivery with favorable references from public agency or source of grant support that is source of repayment of advance(s) under Revolving Line of Credit.
Management	Stable, experienced, competent management; governance from board of directors.


Application Process
If you are eligible to apply for a CEDLI loan based on the criteria described above, or you would like more information about the Working Capital Initiative Program, please contact a CEDLI office near you: Northern California - Oakland, Clinton Etheridge, Vice President, (510)267-8992. Southern California - San Diego, Mark Sullivan, Vice President, (619) 756-7000. Southern California - Los Angeles, Ray Mendoza, Vice President, (213)347-2208. Statewide, George Williamson, President, (510)267-8997.