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Access Florida Finance Corporation

• Access Florida Finance Corporation (AFFC)– Loans & loan guarantees for rural & minority businesses

• Florida Development Finance Corporation (FDFC)– Florida Enterprise Bond: $250,000 to $2 million tax-free industrial

revenue bonds

• Florida Export Finance Corporation (FEFC)– Pre-export working capital guarantees– Political risk insurance– Medium-term financing for export of capital goods– OPIC guarantees for investment outside of U.S.

• Florida First Capital Finance Corporation (FFCFC)– 504 Loan Program: Loans for small business real estate & equipment– Florida Recycling Loan Program: Loans to support

recycling & reduced landfill use– FLEX Loan Program: Loans for profit & nonprofit real estate & equipment,

includes refinance

• Neighborhood Lending Partners, Inc. (NLP)– Provides financing to developers of affordable housing and community

revitalization

FFN Member Organizations

• Unites Florida’s small business economic development finance programs

• Lends and guarantees loans to Florida small businesses• Builds awareness of private and public sector economic development finance resources available to Florida small businesses

FFN Summary

FFN 1-YEAR TOTALSTOTAL PROJECTS ………………………………… 442

TOTAL PROJECT DOLLARS ……………………. $824,849,804

Fed Data:

Small Businesses Face

Credit Crunch

Commercial Lenders Credit Box Shrinking

Crunch Time: Credit Woes Threaten Economy

FFN Assures Credit Availability• Access to capital at reasonable

rates and terms

• Assures credit availability in

uncertain economic times

• Unique partnership allows

private lenders greater credit

flexibility

• Strengthens local economic

development efforts through

direct financial stimulus

Access Florida Finance Corporation

Mission Statement

To provide Access To Capital and technical assistance to black, rural and small businesses throughout Florida and the nation. AFFC will foster Economic Development and job creation by use of Federal, State and private Community Based Programs and in coordination with our strategic alliances.

• Commercial real estate acquisition, improvements or construction• Machinery & equipment acquisition• Community Development Projects• Create or save jobs• Franchise acquisition• Existing business acquisition, expansion or merger• Pollution control• Transportation Services• Working capital• New business start-up (must prove relevant industry experience)• Special purposes within the scope of AFFC’s mission

Eligible Projects

• Commercial business

• Agree to provide all necessary information

• Pay $250 application fee

• Sound individual character

• Minimally acceptable credit score of 600

• Acceptable form of Collateral (i.e. Real Estate, business assets, etc..), with one notable exception

• Cash flow of business reasonably supports loan payments

General Requirements

• Located in Florida

• Business at least 51% owned and controlled by Black Floridians

• U.S. Citizen and Florida Resident

• Direct Loans up to $50,000; Loan Guarantees up to ability to borrow from a bank

• Unsecured Micro Loan up to $10,000 available for owners with a 625+ credit score

• Interest rates on Direct Loans currently range between 5% and 10%, depending upon circumstances; Loan Guarantees are at bank rates

• Loan is economically sound and will assist the business in becoming bankable, increase employment and grow the economy

• Business will be able to compete successfully with the Loan or will obtain technical or managerial support

Black Business Loan Program

• Must be citizens of the United States. In the case of an organization, at least 51 percent of the ownership must be U.S. citizens.

• Must be located in a rural area in Calhoun, Gadsden, Gulf, Holmes, Jackson or Washington County

• Direct loans from $10,000 to $150,000• Interest rates currently range between 6% and 10%, depending upon

circumstances

• Must be unable to finance the proposed project with other means

• No delinquent debt to the Federal Government. USDA Loan Funds may not be used to satisfy the delinquency.

Rural Business Loan Program

• Inc. Magazine 5000 fastest growing companies– 71% were financed by owner or family and friends

– 24% Debt financed

– 5% Equity financed

• Entrepreneur Magazine’s Hot 500 Companies for 2007– 64% were financed by owner or family and friends

– 25% Debt financed

– 11% Equity financed

How Businesses Get Financed

Clearinghouse Referrals

Private Finance Cos

Applicant Direct

Accion

FBCCBBICs

HBIF

FSHCC

SBDC

FFNBanks

Access To Capital

Clearinghouse(AFFC)

Sebai CMET, Inc.

• Located in Melbourne, FL

• Environmental Clean Energy Company

• Requested $20,000 in a working capital Line of Credit to fund operations while a larger loan from Space Florida was in the works.

• Closed in February 2011

Success Story

The Chestnut Firm

• Located in Gainesville, FL

• Law firm specializing in tobacco related cases

• Requested $50,000 for equipment purchases and working capital to fund expanding operations

• Closed in November 2008

Success Story

Jus Hip Hop

• Located in Pembroke Pines, FL

• Dance Studio

• Requested $30,000 in working capital for Start-up financing

• After one year, Jus Hip Hop had eight employees and 74 students

• Closed in July 2009

Success Story

Naturally “U” Art and Braid Studio

• Located in Tallahassee, FL

• Hair Care and Educational Services

• Requested $13,000 in financing to move to larger location and begin classroom services

• First place winner of First Annual Business Plan Writing Contest in 2009

• Closed in May 2010

Success Story

Mark A. ScoveraPresident

2623 Blairstone RoadTallahassee, FL 32301

850-878-0775850-270-1122 (fax)

[email protected]://www.AccessFloridaFinance.com

Contact Information

mailto:[email protected]

Florida Development Finance Corporation


• Enterprise Florida affiliate

• Administers Florida Enterprise Bond program

• Typical minimum/maximum amounts for tax exempt financing: $800,000-$20 million

• No maximum for taxable financing but should exceed $1 million because of transaction costs associated with the bonds

• Must be used for capital expenditures, e.g. land acquisition, construction, equipment

• Use of bonds – 501 (c) (3)s, small manufacturers, sewage facilities, airports, multi-family housing

• Smaller bond projects can be pooled to “minimize” transaction costs


Success Story• Royal Concrete, Okeechobee County

• Modular concrete building manufacturer

• Located in Enterprise Zone & Rural Area of Critical Concern

• FEDF issued $18 million in taxable bonds

• Proceeds financed acquisition/construction of real property and equipment purchase

• Plant opened 1/31/08 - 600 jobs in 3 years

Success Story• Learning Gate Community School, Hillsborough

County

• Not-for-profit 501(c) (3) charter school for 550 students

• Project funded by taxable and tax-exempt bond financing, including $6.5 million+ in tax exempt financing

• Proceeds used for construction and equipping new classrooms

Florida Export Finance

Corporation

FLORIDA EXPORT FINANCE CORPORATION

A Not-For-Profit Corporation

Formed and Funded By

Florida Statute 288.770


Mission:

Creation of Income and Employment for Florida Residents


Achieved By:

Providing Financial Guarantees and Consultative Services to Exporters

Mandating Shipments thru Florida Ports


Products:

Pre-Export Working Capital

Short-Term Credit and Political Risk Insurance

Medium-Term Financing Structures for Capital Goods


Eligibility:

Florida Registered Company

Majority Owned by Florida Resident(s)

Manufacturing or Trading Co.

Less than 250 Employees

Net Worth < $6,000,000

No Mandate on Time in Business


Financial Support:

Exporter Must Have Orders or Series of Orders from Foreign Buyer(s)

Loan is made to Support the Order(s)


Maximum Guarantee:

$500,000Revolving Line of Credit or

Single Sale

Flexible Tenor


Exporters Responsibility:

Sign FEFC Application

Sign Loan Documentation with Lender

Personal Guarantees Required for Shareholder(s) of 20% or

More


Pre-Export Takeouts:

Assignment of Proceeds of CILC’s

Post-Shipment Credit & Political Risk Insurance

Case by Case Approval by FEFC for 5A Rated Foreign Buyers


Transaction Guidelines:

The Loan Amount Will not Exceed the Cost of Goods Sold in the Transaction

The FEFC Guarantees up to 90% of the Loan Amount


Transaction:

$100,000 Letter of Credit

80,000 Cost of Goods Sold

Loan:

$ 80,000 Loan Amount (100%)

72,000 FEFC Guarantee (90%)

8,000 Lender’s Share (10%)


Lender Receives a Transaction Attachment and Guarantee

Commercial Bank Lenders Utilize Normal Commercial Documentation for FEFC Guaranteed Loans


FEFC Works with Ninety Six

Commercial Bank Lenders

Across the State of Florida

for Pre-Export Guarantees


Market AccessEnterprise Florida International trade & Business development

Boca Raton (561) 362-5626Jacksonville (904) 359-6600Miami (305) 569-2650Orlando (407) 902-0230Pensacola (850) 474-2521Tallahassee (850) 922-8832Tampa (813) 276-9430

Florida First Capital Finance Corporation

About FFCFC• Florida First Capital Finance Corporation is a statewide certified

development company that is licensed and regulated by the U.S. Small Business Administration

• FFCFC was founded by the state of Florida in 1983, and today operates as a private, nonprofit corporation

• FFCFC provides access to capital for small business owners in order to stimulate and develop small business growth in Florida

• FFCFC is a charter member of the Florida Finance Network, an alliance of economic development agencies

FFCFC’s Purpose• Strengthen the economic development of the state of Florida

and provide financial assistance to small businesses, specifically through the 504 loan program, in conjunction with the SBA and private sector lenders

• Provide technical assistance: Structuring, underwriting, closing

• Sole source of contact between the borrower and the SBA

• Service the loan for its life

Why Own?

• Pay yourself

• Build equity/grow an asset

• Reduce real estate expenses

• Control/fix real estate expenses

• Stop throwing money away on rent!

• Fulfill a dream

• Own your real estate even after you sell your business (became a landlord yourself)

Use of 504 Proceeds•Acquisition of vacant land for construction of a new building

•Construction of a new building

•Acquisition of land and existing building

•Remodel, convert, expand or renovate existing building

•Leasehold improvements

•Acquisition of machinery and equipment with a minimum useful life of 10 years

•Purchase of furniture, fixtures and equipment

•Contingency reserve, not to exceed 10% of the construction costs

•Associated fees, including fees to the SBA, and soft costs

504 Program Benefits•Up to 90% commercial financing

•Projects from $125,000 to $20 million

•Below market, true fixed interest rates– No ARMs

•Low down payment, usually 10%

•Long amortization terms, up to 20 years

•Loans may be assumable by qualified, acquiring businesses

•Associated fees, including fees to the SBA, and other up-front costs and expenses may be financed in the loan

504 Eligibility•The borrower must be a legal entity: corporation,

partnership, sole proprietor, limited liability company

•The borrower must be a for-profit business located in or planning to locate in Florida

•The borrower must be a U.S. citizen or registered alien with a green card

•The borrower’s tangible net worth cannot exceed $8.5 million

•The borrower’s two-year average after tax annual profits cannot exceed $3 million

•The project cannot be entirely income producing (i.e., relying on tenant income)

50/40/10 Deal StructureSample Project:

CostAcquisition of Building $850,000Renovations $100,000Soft Costs $50,000Total $1 million

FinancingLender – 1st Mortgage (50%) $500,000FFCFC 504 – 2nd Mortgage (40%*) $400,000Borrower Equity (10%) $100,000Total $1 million

(* Up to $1.5 million standard; $2 million public policy; and $4 million manufacturing)

The FFCFC Advantage

Quick turnaround time

Streamlined environmental process

Lowest effective rates permitted by law

Approval decisions made daily

Simultaneous closing process for straight acquisition projects

Specialized statewide network of local FFCFC closing attorneys

Success StoriesBorrower: Oxley Cabinet Warehouse, Jacksonville, FLIndustry: Reseller of building materialsLoan Type: 504Financing Purpose: Purchase land and existing

16,900 square-foot buildingLoan Amount: $616,600

Borrower: Pegasus Transportation, Orlando, FLIndustry: Charter bus transportationLoan Type: 504Financing Purpose: Purchase land and existing 6,440 square-foot buildingLoan Amount: $810,000

Borrower: CDS Manufacturing Co., Quincy, FLIndustry: Small manufacturerLoan Type: Florida Recycling Loan ProgramFinancing Purpose: Purchase molds for forming pre-cast concrete products using reclaimed concreteLoan Amount: $200,000

Neighborhood Lending

Partners, Inc.

Core Purpose StatementCore Purpose Statement

Improving quality of life in our

neighborhoods by facilitating private and

public investment, to provide opportunities

for growth preservation and revitalization.

Neighborhood Lending Neighborhood Lending PartnersPartners

• Established in 1993

• Community Development Financial Institutionas defined by the U.S. Department of the Treasury (http://www.cdfifund.gov)

• Directs Three Non-Profit Operating Entities (NLPWF, NLPSF, NLPNF)

• Banking Consortium (87 Financial Institutions; $347 million closed loans)

• Non-Bank Partners (10 SHIP providers, CDFI, Fannie Mae,Community Development Trust, Community Reinvestment Fund,Federal Home Loan Bank, Shell Oil Company)

• Current Internal Funding Capacity of $345,000,000

• Assists Local Governments

Neighborhood Lending PartnersNeighborhood Lending PartnersStatewide Member Loan Pools – 04/15/2008

NLPNF$49,900,000

NLPWF$138,250,000

NLPSF$86,000,000Total Member: $274,150,000

Overall Total: $345,000,000(Loan Pool totals include active and non-active Member commitments)

Neighborhood Lending Partners

NLPWFKevin L. Tatreau, President

3615 West Spruce StreetTampa, Florida 33607Phone: (813) 879-4525

Fax: (813) 873-9767

NLPSFCecilia La Villa-Travieso, President

1500 San Remo Ave, Suite 140Coral Gables, Florida 33146

Phone: (305) 666-6153Fax: (305) 666-7996

NLPNFDoug Brown, President

760 Riverside Ave, Suite 255Jacksonville, Florida 32204

Phone: (904) 350-1999Fax: (904) 350-1998

Debra S. Reyes, CEO3615 West Spruce Street

Tampa, Florida 33607Phone: (813) 879-4525

Fax: (813) 873-9767

Neighborhood Lending PartnersNeighborhood Lending Partners87 Active Bank Members - 04/15/08

Harris Bank $ 2,625,000

RBC Centura Bank $ 2,585,000

Banco Popular North America $ 2,000,000

Coconut Grove Bank $ 2,000,000

Continental Nat. Bank of Miami $ 2,000,000

Intervest National Bank $ 2,000,000

R-G Crown Bank $ 2,000,000

TotalBank $ 2,000,000

Superior Bank $ 1,502,500

Bank of Florida $ 1,500,000

CNL Bank $ 1,500,000

Eastern National Bank $ 1,500,000

First Southern Bank $ 1,500,000

FirstBank Florida $ 1,500,000

Intercredit Bank, N.A. $ 1,500,000

TransAtlantic Bank $ 1,500,000

Bank of Commerce $ 1,370,000

Bay Cities Bank $ 1,250,000

American Enterprise Bank $ 1,000,000

BAC Florida Bank $ 1,000,000

Bank of Florida - SW Florida $ 1,000,000

Bank of North Florida $ 1,000,000

Citizens First Bank $ 1,000,000

Eagle National Bank of Miami $ 1,000,000

First Citrus Bank $ 1,000,000

First Commercial Bank of TB $ 1,000,000

First Gulf Bank $ 1,000,000

First Nat. Bank of So. Miami $ 1,000,000

Flagship Community Bank $ 1,000,000

SunTrust Bank $24,250,000

Colonial Bank, NA $16,910,000

M&I Bank $ 15,750,000

Regions Bank $12,565,000

Fifth Third Bank $10,750,000

Raymond James Bank $ 10,000,000

BB&T Bank $ 8,500,000

BankUnited, FSB $ 8,000,000

IronStone Bank $ 7,057,500

Synovus Bank $ 6,900,000

Ocean Bank $ 6,000,000

Mercantile Bank $ 5,250,000

Riverside National Bank $ 5,250,000

Great Florida Bank $ 5,000,000

Capital City Bank $ 4,750,000

EverBank of Florida $ 4,750,000

Bank of Tampa $ 4,500,000

Washington Mutual Bank $ 4,500,000

BankAtlantic $ 4,380,000

Mercantil CommerceBank $ 4,000,000

Atlantic Coast Federal Bank $ 3,500,000

First Guaranty Bank and Trust $ 3,500,000

Prosperity Bank $ 3,500,000

City National Bank $ 3,000,000

Coast Bank of Florida $ 3,000,000

Helm Bank $ 3,000,000

HSBC Bank $ 3,000,000

Mellon Bank $ 3,000,000

Pacific National Bank $ 3,000,000

MetroBank of Dade County $ 1,000,000

Optimum Bank $ 1,000,000

Republic Federal Bank $ 1,000,000

Sun American Bank $ 1,000,000

Bank of St. Petersburg $ 850,000

Bay Financial Savings Bank $ 850,000

Park Avenue Bank $ 750,000

First Community Bank of Am. $ 725,000

Northern Trust Bank of Florida $ 600,000

CenterState Bank West Florida $ 565,000

Bank of Florida - Tampa Bay $ 500,000

BBU Bank $ 500,000

Central Bank $ 500,000

Encore Bank $ 500,000

Eurobank $ 500,000

Florida Capital Bank of Tampa $ 500,000

Florida Traditions Bank $ 500,000

Heritage Bank of Florida $ 500,000

Plus International Bank $ 500,000

Regent Bank $ 500,000

Union Credit Bank $ 500,000

Pilot Bank $ 395,000

Old Harbor Bank $ 375,000

Cornerstone Community Bank $ 370,000

Enterprise Nat'l Bank of PB $ 250,000

First Home Bank $ 250,000

Franklin Templeton B&T, FSB $ 250,000

Southern Commerce Bank $ 250,000

Whitney Bank $ 250,000

Neighborhood Lending PartnersLoan ProductsLoan Products

Land Assembly Loans for future affordable housing developments financed by NLP

Multifamily Construction Loans

Multifamily Acquisition/ Rehabilitation Loans

Multifamily Permanent Loans

Housing Preservation Loans for Project-Based HUD Section 8 Properties (Multifamily rental)

Real Estate based Economic Development Loans – Traditional and SBA 504 Supported

Lot Acquisition & Development Loans for the delivery of For-Sale Residential Lots/Pads

Construction Loans for the delivery of For-Sale Residential Homes (detached, townhomes, condos)

Condominium Conversion Loans

Aging-Out Foster Care Loans to assist Foster Care Individuals as they age-out of the program (in development with private equity funds)

Geographic Distribution

County# of

Projects

# of Units

Loan Volume

Brevard 1 50 $1,500,000

Broward 4 18 $4,310,000

Citrus 1 50 $1,700,000

Desoto 6 278 $9,735,706

Duval 2 53 $1,102,540

Escambia 1 112 $6,150,000

Gadsden 2 220 $12,800,000

Hardee 2 224 $4,015,000

Hendry 3 209 $1,731,284

Hernando 1 128 $5,850,000

Highlands 4 382 $9,626,000Hillsborough 37 4,242 $84,313,042

Indian River 2 240 $8,996,639

Lee 2 50 $1,514,000

Madison 1 72 $3,609,845

Neighborhood Lending PartnersClosed Loan Distribution (as of March 2008)

Geographic Distribution

County# of

Projects

# of Units

Loan Volume

Manatee 3 348 $9,113,000

Marion 1 144 $3,000,000Miami-Date 22 1,415 $97,384,889

Monroe 1 102 $5,381,000

Orange 1 168 $3,205,264

Pasco 5 491 $17,258,939

Pinellas 16 359 $16,042,801

Polk 9 1,153 $26,845,526

Putnam 1 78 $1,030,000

Sarasota 4 456 $4,200,000

St. Johns 2 112 $2,195,000

Sumter 2 72 $1,853,000

Volusia 1 80 $3,147,212

28 Counties 137 11,306 $347,610,686

Housing by Occupancy Type

Type of UnitNumber of

UnitsPercent

Senior Citizen Housing 1,846 16.3%

Farm Worker Housing 934 8.3%

Special Needs Housing 108 1.0%

Large Family Housing 273 2.4%

Family Housing 8,145 72.0%

Totals 11,306 100.0%


Income Restrictions

Maximum AMINumber of

UnitsPercent

35% 744 6.6%

40% 254 2.2%

50% 894 7.9%

60% 7,042 62.3%

80% 741 6.6%

120% 31 0.3%

Market 1,600 14.2%

Totals 11,306 100.0%


Project Description 47,385 Total square feet of retail space on 3.6 acres 39,079 SF for anchor tenant (grocery store) 8,306 SF for local tenants, including police resource center with no rent

Location Midtown Demographics22nd Street & 18th Avenue South Average Income was 47% of AMISt. Petersburg (Midtown) 33% of population was below poverty levelPinellas County No grocery store or bank in neighborhood

Site Issues 32 separate parcels, some with multiple owners Needed eminent domain rights to clear title on one parcel City to provide land lease, but required a shopping center to operate on-site

Anchor Tenant Requirements Needed a $1,000,000 interest free loan to help pay for tenant improvements with a term of 20 years, to begin repayment after the 10 th year Rental rate was one-third the market rate for a grocery store

Tangerine PlazaTangerine Plaza

Final Project CostsLand Lease (prepaid in full) $ 495Site Development $ 750,270Building Shell/Local TI $ 4,498,758Anchor Tenant Improvements $ 1,000,000Permits & Government Fees $ 39,466Professional Fees $ 377,310Pre-Development Soft Costs $ 133,000Construction Financing Costs $ 209,301Insurance $ 26,353Developer Overhead $ 133,354Working Capital $ 504,859Developer Profit $ 429,943Community Outreach Program $ 200,000Tenant Assistance – Rent/Build-Out/WC $ 500,000NMTC Financing Costs $ 264,003NMTC Organization & Placement Fees $ 456,609CDE/Investment Fund Escrows $ 12,540TOTAL` $ 9,536,361

(Excludes Land Costs in excess of $1,000,000 incurred by the City)

Appraised ValuesMarket $ 4,220,000Market with Favorable Financing $ 5,320,000


Final Project Sources of FinancingBB&T EDGE Loan (FHLB-Atlanta) $3,200,000 (Paid off NLPWF Construction Loan)City of St. Petersburg $ 1,336,500NLPWF CDFI Funds $ 661,500OCS Grant $ 700,000Anchor Tenant $ 769,212City of St. Petersburg $ 75,000Private Donation $ 10,000NMTC Equity $ 2,784,149Total Sources $ 9,536,361(Excludes Land donated by the City in excess of $1,000,000)


Project Description160 rental apartment units on 16.0 acres 88 three bedroom / two bath units (1,049 SF)

16 two bedroom / two bath units (899 SF) 56 four bedroom / two bath units (1,199 SF)

Location53 N. Willow StreetFellsmere, Indian River County

Project Restrictions12.5% of the units (20) at 40% of AMI (restricted rents will be 53% of market rate rents)87.5% of the units (140) at 50% of AMI (restricted rents will be 70% of market rate rents)40% of the units are farmworker / commercial fishworker60% of the units are family

Sonrise Villas, Phase ISonrise Villas, Phase I

Development Issues Fellsmere is a rural town with an economy based on agriculture. It was difficult to find rental housing and many reportedly resort to substandard housing or multiple families renting one unit. Many farmworkers rent from their employers, most are not legal residents; however, 47% of the farmworkers do not rent from their employer. Family income for the subject project will range from $14,160 - $30,400 (in 2003). Although there are no apartments in Fellsmere, there is another farmworker rental complex of 71 units planned in town to be financed by Rural Development (HUD Section 514/516 developments). These units will be available to a lower income population and will have a broader definition for “farmworker.” There is an estimated 229 legal farmworker households in Indian River County and a supply of farmworker housing (including those that are proposed) totaling 335 units. The appraisal included the phrase “ … development of the subject should proceed with caution.”


Final Project CostsLand $ 400,000Site Development $ 695,584Hard Construction Costs $ 8,569,161Permits & Government Fees $ 818,514Professional Fees $ 366,250Financing Costs $ 1,292,832Insurance $ 102,200Developer Overhead & Profit $ 1,452,149Other Soft Costs $ 351,520TOTAL $ 14,552,245

Appraised ValuesMarket $ 8,175,000Restricted Rents $ 4,435,000Restricted Rents w/ Favorable Financing $ 4,745,000

Final Project Sources of FinancingNLPWF 1st Mortgage $ 3,500,000FHFC SAIL Loan $ 1,500,000FHLB AHP Loan $ 500,000LIHTC Equity $ 8,744,292Deferred Developer’s Fee $ 307,953Total Sources $ 14,552,245


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