alternative sources of funding | ledc

Stable Housing. Thriving Businesses. Strong Communities.

Accessing Small Business Loans to Start or Grow Your Business

The Latino Economic Development Center (LEDC)

Panel about alternative source of funding September 26, 2013O

Stable Housing. Thriving Businesses. Strong Communities.

LENDING PROGRAM

Certified Community Development Financial Institution (CDFI) and SBA small business lenderProgram established in 1997Provide technical assistance and small business loans between $5,000 - $50,000One loan product: fixed, fully-amortizing term loansWork with both start-up and existing small business owners who are underserved by mainstream financial institutions Serve the entire Washington Metro area (DC, VA, MD) plus BaltimoreInterest rates: 9-14 percentTerm: 6 months to 5 yearsProcessing time: 2-4 weeksNo pre-payment penalty

Stable Housing. Thriving Businesses. Strong Communities.

OUR PORTFOLIOPortfolio at Risk is less than 3 percent 200 active clients Average loan size of $12,000FY13: Disbursed 120 small business loans

Disbursed $1.9 million in funding200+ jobs created or maintained30 new businesses created

95 percent low to moderate income (LMI)

Stable Housing. Thriving Businesses. Strong Communities.

FUNDING SOURCES

SBACDFIBanksFoundationsCountyStateFederal

Stable Housing. Thriving Businesses. Strong Communities.

OUR PROCESS

$50 application feePull Credit reportGather documentsPrepare credit memoPresent credit memoClose Loan

Stable Housing. Thriving Businesses. Strong Communities.

SWEET & NATURAL BAKERY

Stable Housing. Thriving Businesses. Strong Communities.

LALOS MARKET

Stable Housing. Thriving Businesses. Strong Communities.

COLUMBIA HAIR SALON

Stable Housing. Thriving Businesses. Strong Communities.

MANDU

Stable Housing. Thriving Businesses. Strong Communities.

Lending Clients per Income

Q3-FY12Low Income 73.7%Moderate Income 21.1%Others 5.3%TOTAL 100.0%LMI 94.7%

Portfolio at Risk

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13PAR>30 days 11.8% 5.9% 5.8% 5.1% 3.5% 3.1% 1.7%

Contact InformationCesar Lopez, Director of Lendingclopez@ledcmetro.org

Carlos ArangoSmall Business Lending Officer, Marylandcarango@ledcmetro.org

Christina StockamoreSmall Business Lending Officer, Washington D.C.cstockamore@ledcmetro.org

Pamela CanasSmall Business Lending Officer, Virginia.pcanas@ledcmetro.org