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Post Finance Technical Assistance - Program


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Lloyd Consulting Group, LLC developed a program to address a need for post loan consulting services for small-mid size businesses. Partnering with financial lender(s) as an added-value service to their small business loan portfolio the application of a Post-Finance Technical Assistance Program (PFTA) will result in loan default mitigation and expanded community economic development.

Local, State and/or Federal resources that provide technical assistance (T/A) services deliver essential guidance and support for pre-finance technical assistance but a gap in services exists in post-finance technical assistance. Post-Finance Technical Assistance is a validated need by the SBA and its resource partners but there is a lack of understanding of how to design a working model with the appropriate key elements that will optimize value for the small business client and lender. A methodical approach to a structured PFTA program at the lender level will ensure business objectives are met, loan defaults are mitigated and community economic development is achieved.

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Post Finance Technical Assistance - Program

  1. 1. Presented byLloyd Consulting Group, LLC
  2. 2. I. Statement of Confidentiality & Non-DisclosureII. OverviewIII. Program Objectives• Value Proposition to Lender• Value Proposition to Business• Value Proposition to CommunityIV. Methodologies• Program Model• Program Timeline• Return Driven Strategy©V. Program CostVI. Firm CapabilitiesVII. Management Team
  3. 3. This presentation is strictly confidential to the recipient, may not bedistributed to the press or any other person, and may not be reproduced inany form. Failure to comply with this restriction may constitute a violation ofapplicable laws. If you are not the intended recipient of this presentation,you are hereby notified that any dissemination, distribution or copying ofthis presentation is strictly prohibited. Opinions, conclusions and otherinformation in this presentation that do not relate to the official business ofLloyd Consulting Group, LLC shall be understood as neither given norendorsed by it.
  4. 4. Small businesses represent 99.7% of all employer firms and employ slightly over50% of all private sector employees which has generated 64% of net new jobsover the past 15 years. As the economic engine for the economy, smallbusinesses require access to capital but in 2007 during the wake of the “greatrecession” small business lending has been and continues to be stagnant. In 2010,Small Business Loan Volume outstanding was a total of $652B, a decrease from a2008 peak of $712B.Local, State and/or Federal resources that help address the credit gap and lack ofbusiness experience of small business entrepreneurs are characterized astechnical assistance services (T/A services). The Small Business Administration(SBA) offers T/A services via the Small Business Development Centers (SBDCs)and/or the Service Corp of Retired Business Executives (SCORE). Furthermore,T/A service providers (T/A providers) also include quasi-public organizations witha focus on economic development and non-profit organizations such as WomenBusiness Centers and Minority Business Centers. Partnerships between lendersand T/A providers can help close the gaps between small business entrepreneursand lenders.
  5. 5. T/A services and T/A providers deliver essential guidance and support for pre-finance technical assistance but a gap in services exists in post-financetechnical assistance. Post-finance technical assistance (PFTA) is a validatedneed by the SBA and its resource partners but there is a lack ofunderstanding of how to design a working model with the appropriate keyelements that will optimize value for the small business client and lender. Amethodical approach to a structured PFTA program at the lender level willensure business objectives are met, loan defaults are mitigated andcommunity economic development is achieved.Trends in small business growth are percolating in metropolitan areas whichhave LMI census tracts. Of the estimated 26M small businesses in the, 7.8M are women-owned with an additional 4.6M that have 50%+ownership by women. 5.8M are minority-owned therefore slightly over 50%of the small businesses today are women/minority-owned enterprises(W/MBE). If high concentrations of W/MBE populations are found inmetropolitan areas and metropolitan areas have LMI census tracts and smallbusiness growth trends are increasing in these environments then a PFTAprogram may alleviate some concerns for lenders, provide a sense of securityand comfortability for small business clients and help narrow the lending gapbetween LMI and MHI areas that has traditionally existed.
  6. 6. The objective of the post-finance technical assistanceprogram is to provide hands-on technical assistanceservices post-loan funding stage to ensure businessobjectives are met, loan defaults are mitigated andcommunity economic development is achieved.
  7. 7. • Value Proposition to Lender: A strategic partnership with Lloyd ConsultingGroup, LLC to implement a PFTA program will yield direct tangible benefitsin reducing the small business loan default rate at a cost savings to thelender. The cost/benefit ratio is attractive due to a flat rate nominal fee.Additionally, matching fund opportunities and/or direct funding streams insupport of a PFTA program from the SBA or state of Massachusetts may beavailable. Furthermore, lenders can earn CRA credit for a PFTA programwhilst providing unique value-added service to clients.• Value Proposition to Business: Lloyd Consulting Group, LLC will providehands-on technical assistance to small business clients achieve theirbusiness objectives and maintain their ability for loan repayment. Businessowners will gain enhanced skills in financial management which will aid inbusiness growth and sustainability as well as undergo the strategic planningprocess for capacity building and long term business growth.• Value Proposition to Community: Community economic development isachieved through investment. Investments begin at the lender and smallbusiness/entrepreneur level. These investments are sustained by sound andcarefully calculated business decisions. A PFTA program administered byLloyd Consulting Group, LLC ensures a support mechanism is in place tofurther assist these investments to foster growth and produce additionaleconomic opportunities for the community.
  8. 8. Program Model1. An initial assessment meeting upon fund allocation – (eg. 30 days or less) is scheduledbetween Lloyd Consulting Group, LLC and the small business client to discuss/reviewthe PFTA program. Financial documents will be collected at this time - (eg. P&Lstatement, Balance Sheet, Financial Projections, etc.).2. On a monthly basis, small business clients will provide financial statements – (eg. cashflow, P&L, balance sheet, etc.) to Lloyd Consulting Group, LLC throughout duration ofthe one year program.3. On a quarterly basis an in-person meeting will be scheduled with the small businessclient and Lloyd Consulting Group, LLC to review financial performance, discusschallenges and/or opportunities and take corrective action steps if necessary.4. On a quarterly basis Lloyd Consulting Group, LLC will provide the lender a report of thesmall business client’s performance. Furthermore, a mid-program evaluation (eg. 6month benchmark) will be submitted by the small business client to the lender toensure business needs/objectives are being met.5. On a quarterly basis, business coaching sessions will be offered to small businessclients in a group format that address topics such as: Marketing, Operations, StrategicPlanning and IT.6. At the completion of the one year program a final evaluation will be completed byLloyd Consulting Group, LLC and the small business client to be submitted to thelender.
  9. 9. Program Timeline
  10. 10. Return Driven Strategy©A relatively new yet proven application model that Lloyd Consulting Group,LLC has adopted is referred to as Return Driven Strategy© (RDS). RDS is aCompany Analysis Framework developed by Professor Joel Litman of HarvardBusiness School and Managing Director of Equity Analysis & Strategy, Inc. andDr. Mark Frigo, PhD, Director of The Center for Strategy, Execution, andValuation at the Kellstadt Graduate School of Business at DePaul University.Return Driven Strategy© applies the interrelationships between businessstrategy, execution, performance, and valuation: plans, actions, cash flows,performance results, and forecasts. This framework focuses on practicalstrategic analysis built on a Shareholder/Lender/Investor perspective onperformance and valuation.Lloyd Consulting Group, LLC has full access and a close relationship with thecreators of this workbench. The utilization of this workbench by LloydConsulting Group, LLC enables a higher degree of valuable insight into thesmall business client’s performance whilst providing critical feedback to thelender on the future borrowing capacity of the small business client.
  11. 11. Lloyd Consulting Group, LLC charges $3,000 per eligible firm thatenters into the post-finance technical assistance program. Thecost includes the 12 month duration of PFTA program, T/Aservices and the quarterly business coaching sessions. Optionalfunding sources include but are not limited to: matching fundopportunities and/or direct funding streams in support of aPFTA program from the SBA or state of Massachusetts and/orlenders can earn CRA credit for implementing a PFTA programfor small business clients in underserved and/or urbancommunities with LMI census tracts.
  12. 12. Lloyd Consulting Group, LLC is a boutique management consulting firmspecializing in growth strategies for small-mid size businesses (SMB) andengineering economic development initiatives with local, state, and/or federalentities in urban markets. Strategic planning is the tactical approach taken toachieve pre-defined business objectives, identify potentialchallenges/opportunities and determine best solutions for implementation.Lloyd Consulting Group, LLC utilizes proven management consultingworkbenches and frameworks that deliver value-engineered performance drivenstrategies which yield operational enhancements and increases a competitiveadvantage for our clients in the SMB market space. An approach that leveragesboth qualitative and quantitative analysis, Lloyd Consulting Group, LLCunderstands that long-term financial performance growth is achieved viaeffective return driven strategy methodologies.Our process begins with the appropriate model assessment transitions tosolution-based initiatives and concludes with a comprehensive strategic plan.Clients and management teams that work with Lloyd Consulting Group, LLCexperience an idyllic relationship that fosters a strong value system anchored onthe following: Transparency, Confidentiality, Integrity, Partnership andExecution.
  13. 13. John D. LloydFounder and CEO+1.617.934.2370 ext. 1jlloyd@lloydconsultingllc.comRicardo L. MoraesManaging Partner+1.617.934.9370 ext.