Session 3 PowerPoint - Susan Lamping

Microfinance in the U.S.
Presented by Susan Lamping
CDC Small Business Finance

Overview of Presentation
About CDC Small Business Finance
Microfinance review
Microfinance Organizations and Programs
Strategic Partnerships
Role of Microfinance Organizations
Bank Financing vs. Microfinancing
Resource Development
A Typical Microfinance Client
A Success Story
Questions

About CDC Small Business Finance
CDC’s are financial intermediaries certified by the SBA to administer SBA commercial real estate loans.
There are 266 CDC’s in the USA.
CDC Small Business Finance has been in operation since 1978 and is the nation’s largest CDC. We have a staff of over 60 professionals and manage a loan portfolio of over $1.7 billion, with over 3,500 loans.
CDC administers a varieties of loan programs to meet entrepreneur’s needs.
Some Stats…

Microfinance- Review
What have you learned about Microfinance so far and what questions do you still have?

Types of U.S. Microfinance Organizations/Programs
Credit vs. Training led.
Poverty Elimination.
Private non-profits as direct lenders.
Bank Consortiums.
Government Funded programs.
SBA Micro Lenders.
Target market organizations.
Geographic Based.
Bank Partnerships.

Strategic Partnerships
Business training organizations (ie- SCORE and the SBDC’s).
Chambers of Commerce.
Other Loan Programs to leverage access to capital.
Loan Guarantee programs (State Loan Guarantee Program, Cal Cap)
Bank Partnerships (for marketing and lending).

Roles of Microfinance Organizations
Provide access to capital.
Training.
Financial literacy.
Resource for other services.
IDA Administration.
Support/Encourage.

Bank Financing vs. Microfinancing
Traditional areas of evaluation
Credit of all principal business owners
Capacity to repay loan
Collateral
Capital
Conditions (Economic, Industry)
Experience in the Industry
Business Plan,/Projections
Character Lending

Resource Development
Earned Income
Sources of Capital
Government (Local, State and Federal)
Banks
Private Parties
Strategic Partnerships to Leverage Resources
Challenges of Limited Resources
Sustainability/Self Sufficiency

A Typical Microfinance Client
A refugee.
A recent immigrant.
A young person.
Lacks credit history.
Has poor credit from a couple year’s past.
Lacks collateral.
Start up businesses.
Businesses with a ‘story’.
Industries served: children’s resale shop, bookkeeping service, cleaning business, coffee shop, carpet cleaning, toy store, online children’s décor, medical supply company, surveying company, pool cleaning, soccer school, chiropractor, esthetician, hair salon, Hospice agency, limo company, manufacturing business, yogurt shop, adult daycare for developmentally disabled.

Client Success Story Dr. Clark’s Store, owner Oskar Thorvaldsson

Ending Remarks
One practitioner’s opinion…

Contact Information
Susan Lamping
Senior Community Loan Officer
Main line: (619) 291-3594 ext. 8639
Direct line: (619) 243-8639
[email_address]
CDC Small Business Finance
2448 Historic Decatur Road, Suite #200
San Diego, CA 92106

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Session 3 PowerPoint - Susan Lamping

by San Diego Microfinance Alliance on Nov 02, 2009

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Session 3 PowerPoint - Susan Lamping — Presentation Transcript