1. 1 Economic Development in Rural Wisconsin Small Business and Farm Access to Credit Wisconsin Business Development Finance Corp. A Certified Development Company www.wbd.org

2. Wisconsin Business Development Finance Corporation  Authorized by the Small Business Administration as a Certified Development Company, which allows us to originate and service SBA 504 loans. Fixed Asset Financing (i.e. Buildings and Equipment) Long Term Fixed Interest Rate (10 and 20 years) Subordinated Debt to the Lead Lender  Provide Loan Packaging Services to Wisconsin Lenders SBA 7(a) USDA – Rural Development – Business & Industry Loan Guarantees WHEDA Loan Guarantees Revolving Loan Funds 2

3. 3 WBD Offices  Lending Offices  Madison  Waukesha  Racine  Oshkosh  Green Bay  Stevens Point  Eau Claire  Hudson

4. 4 Wisconsin Business Development Finance Corporation  30 years of working with our lending partners to benefit Wisconsin businesses Funding $2 Billion plus in community development projects in Wisconsin For over 2,000 Businesses Contributing to 64,000 jobs statewide Originating 504 projects in 70 of Wisconsin’s 72 counties

5. 5 WBD Performance In Rural WI

6.  In 30 Yrs - 2043 Loans Funded  575 in OMB defined Rural Counties  30 Yr Average 28.1% Rural  5 Yr Average 26.5% Rural  Lagging Indicator  Since Recovery began Rural Loans have been at or below 5 Yr Average 6

7. 7 WBD SBA 504 Portfolio Trend

8. Comments on Portfolio Trend  Combined Rural & Metro Portfolio  Stimulus Package in 2009 & 2010 was a benefit  Volume was Up in a Down Economy  Fewer Start-up Businesses  More Purchase of Existing Facilities Less New Construction  Impact on Rural Business Activity 8

9. Industry Segments  Strongest Industry Segments Manufacturing Professional Other Service Food portion of Accommodation & Food  Weakest Industry Segments Retail Trade Home Care & Social Assistance Art, Entertainment & Recreation Agriculture – Dairy – Low milk prices 9

10. 10 Average Credit Score on Approved 504 Loans

11. 11 Comments on Credit Scores  For 504, Lenders are the Gatekeeper - Bring the Projects to WBD  More Lenders Looking for Credit Enhancements  Lenders Only Bringing Stronger, Well Established Businesses – don’t see Weaker Projects

12. SBA 7(a) Lending  WBD Assists Community Based Lenders with Loan Packaging  More Lenders Looking Ways to Deal with Pressure from Examiners, Often Seeing Weaker Projects that need shoring up Debt Restructuring to improve cash flow  Not Seeing Start-up Businesses Innovative Businesses 12

13. Life After the Stimulus Package  Steady but Lower Volume  Lenders Keeping Stronger Projects  Looking to for Credit Enhancements on Middle of Road Projects  Void in the System for Start-ups and Innovative Projects  New SBA 504 Refinance Rules will help Business Cash Flow Restructure Debt Cash Out Equity in Fixed Assets 13

14. 14 Thank You! Rich Diemer V.P. & Economic Development Officer