2. BACKING THE BUSINESS OF RURAL AMERICA BACKING THE BUSINESS OF RURAL AMERICA PANDOR H. HADJY, DEPUTY ADMINISTRATOR BUSINESS PROGRAMS

3. 1. Putting Money in the Hands of Rural Business Owners

4. B&I Accomplishments FY 2009 Number of loans Dollars Obligated Jobs Created/Saved Businesses Assisted Apps and pre-apps pending Dollars pending Portfolio - # of Borrowers Portfolio – Loan Amount 506$1,244,618,15821,296552190$680,889,3312,299$5,401,994,463 Putting Money in the Hands of Rural Business Owners

5. B&I Quarterly Loan Obligations Putting Money in the Hands of Rural Business Owners $3 billion in lending support

6. FY 2010 PROGRAM LEVELS Business and Industry Guaranteed Business and Industry Guaranteed – ARRA Rural Business Enterprise Grants Intermediary Relending Program Rural Economic Development Loans Rural Economic Development Grants Rural Energy for America Program – Loans Rural Energy for America Program – Grants Biorefinery Assistance Program Repowering Assistance Program Payments to Eligible Advanced Biofuel Producers $993,001,876 $ 1,523,298,274 $ 41,956,000 $ 33,536,000 $ 33.077.000 $ 10,000,000 $264,372,580 $ 63,279,580 $ 803,476,177 $ 35,000,000 $ 80,000,000 Putting money in the Hands of Rural Business Owners

7. Guaranteed Renewable Energy Programs Section 9003 - Biorefinery Assistance Program –Awarded $159.5 million for 3 advanced biorefinery loan guarantees Section 9007 -- Rural Energy for America Program (REAP): Loan guarantees of up to $25 million Putting money in the Hands of Rural Business Owners

8. Renewable Energy Investments, 2003 - 09 Renewable Energy Systems and Energy Efficiency Conversion Projects Technology Number of Projects Grants, Loans, & Combos Amount Amount Leveraged Biomass32089,993,200380,365,833 Wind36173,651,189641,098,744 Solar27414,077,34337,930,249 Geothermal993,080,3958,374,339 Hybrid222,935,64886,720,575 Hydropower41,064,4322,475,253 Subtotal1,080184,802,2071,156,964,993 Energy Efficiency2,42880,566,465192,211,677 EA/REDA222,173,631 Feasibility Study501,244,600 Combined Funding Activities3,580268,786,9031,349,176,670 Putting money in the Hands of Rural Business Owners

9. ARRA – B&I Recovery Act Goals: Create and Save Jobs Spur Economic Activity Long-term Economic Growth Accountability and Transparency Putting money in the Hands of Rural Business Owners

10. ARRA B&I 90% Guarantee up to $10 million 1% Guarantee Fee No Annual Renewal Fee 55 points = 90% Guarantee – –20 discretionary priority points if borrower provides quality jobs and at least 1 of the 4 demographic criteria Putting money in the Hands of Rural Business Owners

11. ARRA B&I Status 203 projects approved for $695,086,036 or 46% of ARRA B&I funds available Our goal is to spend 70% of ARRA funds by April 16, 2010 Putting money in the Hands of Rural Business Owners

12. #2. Access to Loans for Rural Business Owners

13. Access to Loans Lenders in B&I Guaranteed Loan Program

14. Top 10 B&I Lenders in FY 2009 $53,202,000$41,628,100$33,945,000$29,022,100$25,054,500$25,046,832$24,579,193$22,713,000$21,510,000$20,270,000 RIDGESTONE BANK EXCEL NATIONAL BANK BORREGO SPRINGS BANK COMMUNITY SOUTH BANK AMERICAN TRUST & SAVINGS BANK AMERICAN BANK OF ST. PAUL HIGH TRUST BANK PLAINS STATE BANK BANK OF THE WEST BUSINESS CAROLINA, INC Access to Loans

15. Summary of B&I Lender Caseloads Number of Loans Number of Lenders 01878 02278 03 – 05 189 06 – 10 43 11 – 20 17 21 – 50 12 51 - 100 1 Total:1,418 Access to Loans

16. Rural Development State Offices Access to Loans

17. Top 10 B&I Lenders Access to Loans

18. Active B&I Lenders in the Continental United States Access to Loans

19. Secondary Market Access to Loans

20. Loans Sold on the Secondary Market Yield: A premium when the loan is sold Servicing fees for lenders The opportunity for entrepreneurs to invest in rural America New partners (and capital) being brought to Rural America A chance to play a part in the revitalization of depressed rural areas Access to Loans

21. #3. Listening to Lenders

22. Report Card: Report Card: Listening to Lenders

23. Difficulties With Program Listening to Lenders

24. Lender Survey Pluses Lender Survey Pluses Knowledgeable Employees Long Term Loans Better Rates Pre-approval process Larger Loans More flexibility Streamlined Process Listening to Lenders

25. Lender Survey Minuses Lender Survey Minuses - Time - Difficulty with Construction Loans - Environmental Assessments - Vague Regulations - Lack of Consistency Listening to Lenders

26. Program Goals Enhance Lender Profits Increase Commercial Credit in Rural Areas Rural Employment Helping Business Stimulating the Economy “Sustainable Economic Development” “Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime”—Author unknown Listening to Lenders

27. #4. Honoring our Commitment to Customer Service

28. Reinvigorating our Programs

29. Initiatives for FY 2010 The RBS 2010 initiatives involve Change! –Lenders and Associations –Employees –Programs Reinvigorating our Programs

30. Lender Requested Program Changes Improve Consistency Improve Consistency –Percent of Guarantee –Issuing Guarantee Prior to Construction –Interim Construction Financing Lender Advocate Reinvigorating our Programs

31. Initiatives for FY 2010 Created Business Programs Advisory Teams –State and Field Office Employee Empowerment –Investment in our Staff Staff Training Hiring Staff Reinvigorating our Programs

32. Business Programs Regions

33. Difficulties With Program Honoring our Commitment to Customer Service

34. Initiatives for FY 2010 Increase Partnerships Lender Meetings/Forums Continuous Customer Feedback Reinvigorating our Programs

35. Initiatives for FY 2010 Administrative Program Enhancements Long Term Program Changes Reinvigorating our Programs

36. Lender Requested Program Changes B&I program enhancements B&I program enhancements Best Practices of other Government Guaranteed Programs Best Practices of other Government Guaranteed Programs Program Consistency Reinvigorating our Programs

37. Initiatives for FY 2010 B&I program enhancements –Debt Refinancing –Lines of Credit –Preferred Lender Program –Protective Advances –Secondary Market Improvements Reinvigorating our Programs

38. Continuous Process Improvement Lender Program Employees Reinvigorating our Programs

39. No One Can Sit On The Sidelines! Reinvigorating our Programs

40. Serving as the Advocate for Rural Business Serving as the Advocate for Rural Business

41. Goals Improve: –Customer service –Response times –Consistency by the states –More authorities at the lowest level –Timely Loss Payments Serving as the Advocate for Rural Business

42. RBS ARRA Goals JOBS, JOBS, JOBS Record Program Delivery Service to Communities of Greatest Need Business Process Improvements Marketing Improvements Lender Community Confidence Serving as the Advocate for Rural Business

43. Success Stories

44. Summary 1. Listening to Lenders 2. Honoring our Commitment to Customer Service 3. Putting money in the Hands of Rural Business Owners 4. Access to Loans for Rural Business Owners 5. Serving as the Advocate for Rural Business