www.nwcommission.org Northwest Commission Small Business Finance Program Daryl Coyne Manager, Loan Programs John Klinger, Loan Specialist Lori Mild, Loan Servicer Loan Workshop May 21, 2009 Cross Creek Resort

Northwest Commission Programs www.nwcommission.org Northwest Commission Programs Economic Development Government Contracting Loan Program International Marketing Business Attraction Community Development www.selectPAgreatlakes.com www.nwcommission.org

OVERVIEW of Loan Program Lending since early 1980’s www.nwcommission.org OVERVIEW of Loan Program Lending since early 1980’s Encourage start-up ventures Expansion of existing companies Job creation/retention

FEDERAL and STATE SOURCES www.nwcommission.org FEDERAL and STATE SOURCES Economic Development Administration Appalachian Regional Commission US Department of Agriculture Small Business Administration (Microloan) PA Department of Community & Economic Development

Land & Building – up to 15 year term www.nwcommission.org ELIGIBLE PROJECTS and TERMS Land & Building – up to 15 year term - Acquisition, construction, renovation Machinery & Equipment – 5, 7 or 10 year term - New/used WORKING CAPITAL – 3 year term - Major expansions

Revolving Loan Fund (RLF) - 4 points below prime (min 4%) www.nwcommission.org RATE Revolving Loan Fund (RLF) - 4 points below prime (min 4%) Small Business First (SBF) - 3% MAXIMUM LOAN Up to $200,000 SBF 50% eligible costs (whichever less) RLF 50% eligible costs (whichever less) COLLATERAL Primarily subordinate to banks Shared liens with other ED programs (excluding PIDA)

Microloan Program Loans up to $20,000 www.nwcommission.org Microloan Program Loans up to $20,000 Total Project Cost less than $105,000 Interest Rate – 6% presently Term – up to 5 years Loans must be secured Business Plan reviewed by SBDC Eligible Uses Machinery & Equipment Working Capital

Genesis Loan Fund Clarion County only Loans up to $10,000 www.nwcommission.org Genesis Loan Fund Clarion County only Loans up to $10,000 Interest Rate – Two points below Prime (min 4%) Term – up to 4 years Loans must be secured Business Plan reviewed by SBDC (start up ventures) Eligible Uses Machinery & Equipment Inventory

Application Process Complete applications are due first of month www.nwcommission.org Application Process Complete applications are due first of month Loan meetings are generally on fourth Tuesday Borrower attends loan meeting DCED loans are mailed to State for final approval Borrower will be required to substantiate costs in the application and at closing Borrower can not access same loan fund for one year from closing

Three-Year Financial Statements Corporate Tax Return www.nwcommission.org REQUIRED INFORMATION Three-Year Financial Statements Corporate Tax Return In-House Financial Statements (within 90 days) Personal Financial Statements (20% or greater ownership) Personal Tax Return Business Plan (if start up venture) Resumes of Principals and Management (management ability) Description of Project Breakdown of Costs (Bids, Quotes, Sales Agreement, etc.)

Six Commercial Lenders Three Private Industry Two Board Members www.nwcommission.org LOAN COMMITTEE 11 Members Six Commercial Lenders Three Private Industry Two Board Members

CURRENT PORTFOLIO (February 2009) www.nwcommission.org CURRENT PORTFOLIO (February 2009) 195 Loans - $15.7 million 110 RLF - $ 7.6 million 85 SBF - $ 8.1 million 24 Microloan - $288,587 Jobs: Promised 1,185 Created 1,660 Retained 3,448

Northwest Pennsylvania Regional Planning & Development Commission www.nwcommission.org Northwest Pennsylvania Regional Planning & Development Commission Small Business Finance Program Daryl Coyne Manager, Loan Programs darylc@nwcommission.org 814.677.4800 x112 www.nwcommission.org