1. Grow America Fund June 20, 2014

2. Improving Communities Enhancing Lives NDC is the nation’s oldest non-profit provider of community and economic development, technical assistance and training.

3. Partners in Community Development Since 1969 NDC works in partnership with local and state governments and non-profit organizations to help them build their communities and economies The Pub Group in Portland, OR

4. NDC Technical Assistance NDC defines, designs and executes development and business finance strategies, programs and projects NDC identifies, secures and structures public and private financing and develops projects from concept to completion Bijou Theatre in Bridgeport, CT

5. NDC Technical Assistance Assist Erie County with Financing Tools Federal, State, County and City Programs Analyze Deals and Structure Financing Help Create Local Programs Provide Assistance That Increases Staff Capacity Hands on work with Erie County Staff Assist and Support Erie County Staff

6. Partners in Community Development NDC Training & Professional Certification NDC offers courses designed to give participants the skills and knowledge they need to successfully facilitate housing and economic development in the communities where they live and work NDC’s Chuck Depew teaching Mixed-Use Real Estate Finance

7. Under - NDC’s Grow America Fund What is Grow America Fund? It’s a long-term, revolving loan fund designed to help businesses expand The goal of the program is to help businesses create and retain jobs GAF is designed to leverage equity approximately 4 to1 We are active in over 30 communities all over the United States from New York, NY to Seattle, WA to Gainesville, FL and Port Arthur, TX.

8. What are the advantages of this program for the businesses? Long term financing Low equity requirement Flexible underwriting criteria Limited pre-payment penalties Loans tailored to individual borrowers Under - NDC’s Grow America Fund

9. What can GAF dollars be used for? Real estate acquisitions Debt refinancing Leasehold improvements Machinery and equipment Permanent working capital Under - NDC’s Grow America Fund

10. What GAF dollars CANNOT be used for: Venture capital Research and development Equity needs Under - NDC’s Grow America Fund

11. How much can GAF lend? Loans range from $100,000 to $5,000,000 The U.S. Small Business Administration (SBA) guarantees 85% of all loans less than $150,000 and 75% of all loans more than $150,000 Under - NDC’s Grow America Fund

12. What are the requirements for a GAF Loan? Meet SBA size and eligibility requirements. Demonstrate an ability to repay the loan through existing or projected cash flow Fully collateralize the loan with available assets Personally guarantee the repayment of the loan Under - NDC’s Grow America Fund

13. What are the fees? Fees vary with the size of the loan SBA guarantee fee of 2% to 3.75% of the guaranteed portion of the loan, payable to the SBA and may be paid from loan proceeds Closing deposit of 1%, due after the loan request is approved Other closing costs (can be financed as part of the loan) Under - NDC’s Grow America Fund

14. How long will it take to get a loan? Depends on how complete the loan application is After all the required information has been submitted, processing usually takes 30-45 days Under - NDC’s Grow America Fund

15. NDC’s Grow America Fund Example Project Undercar Company refurbishes calipers. Profitable 11 out of 12 years in existence including 9 straight. Lost its line in the 2008 fiscal crises GAF provided a $1.3 million loan leveraging a $5.6 million restructuring. Since the restructuring, sales have risen by nearly $2 million and the company has added 14 employees. Interior of warehouse of Undercar Express

16. NDC’s Grow America Fund Example Project Martin Sheet Metal Started by Jim Martin’s grandfather in 1922, Martin Sheet Metal d.b.a. as Martin Cab (http://martincab.com/) are leaders in the designing and manufacturing of steel and fabric cab enclosureshttp://martincab.com/ Like many manufacturers, Martin Cab struggled in 2009 and found itself in a difficult position with its bank. GAF refinanced its existing debt while providing it additional working capital. To date, sales are up 67% and profits up tenfold.

17. NDC’s Grow America Fund Example Projects American Ecotech American Ecotech L.C. (“AE”) builds, promotes and sells the best quality air pollution and monitoring instrumentation and completed systems to North American governments, industrial facility and scientific research facilities. GAF financed a $250k of a $265k project to relocate its offices into a vacated office building that the company renovated for its use. Garner Holt Garner Holt Productions, Inc. designs, manufactures, and produces extraordinary high-quality animatronics figures and special effects equipment. The company produces both stock and custom animated human, bird, animal, monster, and cartoon characters, as well as computerized digital audio and show control systems. GAF supplied a $924k loan to finance a $1,042,000 project to purchase and redevelop a structure to house offices and manufacturing facilities.

18. NDC’s Grow America Fund Example Project Daily Behavioral Health Dr. Cara Daily’s business offers psychological services for children and adolescents with various medical conditions, developmental disabilities, and other special needs. GAF provided a $232k loan to offset $245 redevelopment of a former convent for her offices. 14538 Grapeland – New Home of Daily Behavioral Healt h

19. NDC’s Grow America Fund Example Project Sacramento News and Review Sacramento News & Review is a weekly free newspaper The company worked with the local redevelopment agency to acquire and redevelop an 8,500-square foot building on a 48,272-square foot piece of land. SOURCES and USES OF FUNDSGAF Other $ (Grants) Other $ (Loans) Other LoansTotal Real Property acquisition $ 1,395,000 $ - $ 155,000 $ 1,550,000 Renovation $ 324,750 $ 345,000 $ 1,055,000 $ - $ 1,724,750 Working Capital $ 200,000 $ - $ 200,000 Permits and Architectural $ - $ 105,000 $ - $ 45,000 $ 150,000 soft and closing $ 80,250 $ - $ 80,250 TOTAL $ 2,000,000 $ 450,000 $ 1,055,000 $ 200,000 $ 3,705,000

20. For More Information Murphy D. Cheatham, II Field Director/Commercial Loan Officer Central US Region 318.455.9519 mcheatham@nationaldevelopmentcouncil.org www.nationaldevelopmentcouncil.org