1. Presented by: Arlene Lugo & Patti Lind April 21, 2009

2.  Direct Loan Models By Choice  In response to market needs  Due to banking conditions By Necessity  Taking defaulted guaranteed loans in-house Component of Loan Services  Loan guarantees, direct loans, grants Designed to be compatible with capacity  Utilizing staff capacity  Servicing by bank, other non-bank lender

3.  Underwriting Guidelines For orgs making internal lending decisions For orgs using a bank to service direct loans  Guidelines endorsed by Board  Reflect organizational philosophy

4. Key Considerations for Direct Lending Lending Criteria: Terms & Rates Due Diligence: Underwriting to include funder requirements, credit analysis, character indicators, risk rating Collateral Criteria: Fair value, resale value, type of collateral, loan to value Collateral Procedures: Titled vehicles, real estate, chattel Loan Servicing: Closing, billing, managing loan repayment Portfolio Management: Accounting including individual/collective portfolio balances, reserve for doubtful accounts

5.  Program Management  Former program model & outcomes  Current program model  Future: Growth Opportunities!

6. Patti Lind Executive Director The Abilities Fund & Iowa Able Foundation 307 North 13 th, Ste 500 Centerville, IA 52544 Toll Free 1.888.222.8943 prlind@abilitiesfund.org www.iowable.org Arlene Lugo, ATP Program Director CT Tech Act Project DSS/BRS 25 Sigourney Street Hartford, CT 06106 860-424-4881 arlene.Lugo@ct.gov www.cttechact.com/