Colorado Banking Association Acquiring Capital for Growth: Myth vs. Reality Presented by www.bragdenver.com

1. ACQUIRING CAPITAL
FOR GROWTH:
MYTH VS. REALITY
Part 2
Colorado Bankers Association
140 E. 19th Avenue, Suite 400
Denver, CO 80203
303-825-1575
www.ColoradoBankers.org

2. 4 Forces on Lending (cont’d)
• 4th layer impacting lending – DFA regulatory burden
– 2,300 pages, 240 rules, 20,000 pages of regulations, 6.5 feet –
5,000 pages of proposed & final rules to date – 240 page
executive summary
– Lending is part art, part science – regulators look only at
quantifiable
– Banks forced to focus on internal process v customers’
needs
– Bankers spend day accommodating regulatory orders, not
accommodating customers & communities
– “1.2 compliance officers for each lender” – compare to
OSHA
– Exam bill in Congress (external appeal)
– Perlmutter amortization bill passed House in 2010
– Coffman & Perlmutter now with several concepts

3. Scope of Dodd-Frank Act
1. Federal Reserve Act 4. Sarbanes Oxley
2. Glass/Steagall 5. Gramm, Leach, Bliley
3. FDIC Act 6. Dodd/Frank Act

4. Let’s Talk Small Business
CBA’s Small Business Lending Initiative
 Unique
 Local success
 National acclaim
 Model

5. Let’s Talk Small Business
CBA’s Small Business Lending Initiative
• Goal: lend money, create jobs, help economy
– Help get credit to small business even if the bank isn’t the lender
– Maximize conditions for borrowers to get the loan approved
• www.smallbizlending.org
– Prep & support small business borrowers – smart borrower
– Resources for small businesses
– Information & options for lenders
– Advice & Resources
• Links
• FAQs
• Fact sheets
• Loan diagram
• Lender matrix
• Calendar
• Sign-up for updates…
– Advice: don't give up; ask why “no” answer; learn from “no”
answers

7. Let’s Talk Small Business
Bankers have been called nasty names for years
Example out of many: by small-business owners who have been
denied credit, but the Colorado Bankers
Association has launched an effort that
could change that.
Huffington Post
Through a
The SchwabBlog website, smallbizlending.org, Colorado bankers
A small-business blog that covers health care, politics, economic development and more.
are beginning to refer customers who don't
Thursday, March 29, 2012 qualify for their loans to other organizations
Colorado bankers answer call for small- around the state that might find a way for the
business access to capital cash-strapped owner to find capital he or she
needs to grow.
I've been covering small business in Colorado
for more than 20 years, and this effort is the
first I've seen between agencies of government
and large commercial banks to solve the "access
to capital" problem that is a perennial complaint
of small-business owners who don't qualify for
bank loans.
If you try it, it might actually work.

8. Ongoing Challenges Examples
• State Legislature & ballot initiatives
– Public-owned banks
• State owned bank
• Local government owned banks
• “Make loans banks won’t make, but not take any risk”
– Foreclosure
• Killed several bad bills in Legislature; now Constitutional
Amendment
• DFA Risk Retention – effectively require
20% down on home mortgages – bad
consequences

9. Path to Recovery - Lenders
• Funds available for lending
• Great desire to lend – no profit from money in vault
• Economic problems improving
• Overcoming regulatory obstacles
• Bankers anecdotally report resurgence – growing
customer confidence
• Borrowers’ market – banks compete fiercely for “A”
loans

10. Thank You
Colorado Bankers Association
One Sherman Place
140 East 19th Avenue, #400 Colorado Bankers Association
Denver, CO 80203 Government Relations team:
Phone: 303-825-1575 CBA
Don Childears
Fax: 303-825-1585 Jenifer Waller
www.coloradobankers.org Caroline Joy
www.financialinfo.org Colorado Legislative Services
Melanie Layton
(consumer information) Jim Cole
Garin Vorthmann
Hogan & Hartson
Craig Umbaugh
Other partners