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

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

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…

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?

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.

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).

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.

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

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

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.

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…

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

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