This is the Annual Report, which I produced for the Los Angeles LDC, Inc., a financial institution which provides loans under $10 million to underserved businesses and non-profit organizations in Greater Los Angeles. Michael Banner is the President and CEO of the LDC.

2. ECONOMIC DEVELOPMENT (ë/ke nom/ik d vel/ep ment), n. is the net creation of new
employment and the generation of net new wealth and tax base within a local or regional
economy.
Edward J. Blakely
Planning Local Economic Development
Sage Publications, 1994
www.losangelesldc.com

3. Mission and Goal
• To provide capital and advisory services that foster
positive community development impacts in distressed
neighborhoods by aligning the needs of our borrowers and
investors.
• To be the leading community development finance Michael Banner, President and CEO of Los Angeles
solutions provider for the markets we serve. LDC, Inc., is responsible for the daily operations of the
LDC. He has been active in the area of community
development finance for the past fifteen (15) years.
Prior to becoming active in community development,
Michael Banner was a banking executive specializing
in commercial lending with several major California
banks.
www.losangelesldc.com

4. Board of Directors
Elizabeth “Libby” Williams (Chair)
Consultant
Community and Economic Development
Steven M. Herman (Secretary) Joseph Stanley Sanders, Esq.
Vice President & CRA Manager Senior Partner
California Bank & Trust The Sanders Firm LLP
Laurie Hand (CFO /Treasurer) Keith Settle
VP/Senior Business Relationship Mgr. Real Estate Appraiser
Wells Fargo CA Business Banking Keith Settle & Company
Georgina Escamilla Myron P. Perryman
Project Manager Vice President /Client Manager
Southern CA Edison Community Development Bank
Bank of America
John C. Russell
Senior Vice President - Group Manager Marcia McAdams
Real Estate Industries Department Vice President, CRA Officer
Manufacturers Bank California United Bank
Teresa Isago
Operations and Administrative Manager
Los Angeles LDC, Inc.
www.losangelesldc.com

5. Who We Are
• Created in 1980 by the City of Los Angeles
• Certified by US Department of Treasury as a Community Development Financial Institution (CDFI)
• Licensed as a commercial finance lender (CFL) by the California Department of Corporations
• Experienced financial advisor for tax-exempt bond transactions
Where We Add Value
• Minority and women-owned businesses
• Mission driven tax exempt organizations with financing needs
• Small business owner/users of commercial real estate
Our Sweet Spot
• Small to middle-sized businesses
• Transactions under $10,000,000
• Job-sustaining economic development transactions
• Borrowers working to offer expanded access to social services
• Complex community development transactions that require custom financing solutions
www.losangelesldc.com

6. Drapes 4 Show, Inc. Drapes 4 Show, Inc. is a full service manufacturer of table/stage
manufacturing table skirting and linens skirting, table linens, placemats, throw covers and drop-overs for
the Hospitality, Healthcare, Display and Conference industries.
The company has been in business since 1983 solving problems
and developing new products to help their customers increase
their revenue.
LDC Role:
Financial Advisor
Impact:
• July 15, 2008 Drapes 4 Show moved into their new plant in
Sylmar, CA and did not relocate to Las Vegas, which they had
been considering.
• 30 living wage jobs are created or retained.
• Drapes 4 Show acquires enough plant capacity to double its
revenues.
• City of Los Angeles retains a growing manufacturing business.
Jason Honigberg, Drapes 4 Show’s Chief Financial Officer,
with his mother, Karen Honigberg, founder and CEO
of Drapes 4 Show
Tools:
• Bridge loan
• Subordinated forgivable loan
• Tax-exempt variable rate bonds
Deal Size: $1,800,000
www.losangelesldc.com

7. Westerly School of Long Beach Westerly School was founded in 1991 by a group
an independent K-8 school of visionary Long Beach families. The 5.5-acre
campus currently operates using only modular
buildings, but has an approved Master Plan for
developing permanent buildings over time. The first
building to be constructed was the Raymond F.
Bizjack Arts Village, named after the founding
Head of the School. The school has a strong track
record of raising funds to support its operations
and has the necessary pledges under its five-year
Sending Down Roots (“SDR”) capital campaign to
fund the design and retirement of the construction
funding of the Arts Village. To expedite the
construction, Westerly School sought the help of
the Los Angeles LDC to arrange financing against
its $2,000,000 SDR pledges.
Impact:
“Michael made it possible to close our On October 15, 2008, the Westerly School broke
deal during the toughest financial ground on the Ray Bizjack Arts Village building.
environment this country has seen since Construction was completed in October, 2009.
the Great Depression, when no other
organizations like Westerly had access
to loans.” -- Byron Pinckert, Trustee
LDC Role: Lender
Tools:
Mezzanine – Construction loan
Deal Size: $1,450,000
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8. Los Angeles Arts Loan Fund The Los Angles Arts
Affiliated with Center for Non Profit Management Loan Fund (LAALF)
and Center for Cultural Innovation provides loans to
artists and art
organizations at a low
cost while offering an
expedited process.
LAALF was launched
in 2001 and its
founding funders are
a consortium of local
foundations, corporations, the Los Angeles County Arts
Commission and the Cultural Affairs Department of the
City of Los Angeles. The services of the Los
Angeles LDC were engaged for the 2008-2009 fiscal
year to provide the LAALF with portfolio management,
loan processing services and cash management
services. The LAALF makes the credit decisions and the
LDC provides all the back office support to this targeted
micro lending program.
Impact:
LDC Role: Portfolio Manager • The LAALF is able to fund micro loans to artists and
arts organizations in Los Angeles County with greater
Tools: efficiency.
• Loan Documentation & Closing • LAALF can focus its staff resources on developing
• Loan accounting system awareness of the loan fund.
• Cash management service • LAALF can focus its staff resources to loan approvals
• Portfolio activity reporting and fund development.
Deal Size: $200,000
www.losangelesldc.com

9. Asian American Drug Abuse Program
a community based service organization
The Asian American Drug
Abuse Program (AADAP) serves
the Asian American community
throughout South Los Angeles
County. Founded in 1972 to
offer drug abuse prevention and
treatment to the community, the
AADAP has expanded its
services in recent years to meet
the communities’ changing needs.
To support the growth of AADAP,
the organization found a 25,000
AADAP President Mike Watanabe with Los square foot facility to house its
Angeles LDC President/CEO Michael Banner
entire administrative offices.
“By working with the LDC, you get Having utilized the Los Angeles
access to smart money - not only do LDC as its lead financing source for the past decade, AADAP engaged
you get the best financing solution the Los Angeles LDC team for assistance with its latest acquisition.
available, but you even learn a lot along
LDC Role:
the way.” -- Mike Watanabe:
Financial Advisor and Lender
Tools: Impact:
• Bridge Loan The new tax exempt bonds provide AADAP with a reduced interest
• Tax Exempt Bonds cost and annual debt service payments that are projected to produce a
• New Market Tax Credits $2,000,000 savings during the next 10 years. Additionally, the new
administrative facilities will provide the space for all necessary staff,
Deal Size: $4,375,000 enabling the organization to continue serving the South Los Angeles
community, which means about 50,000 clients each year.
www.losangelesldc.com

10. Frederick and Laurie Smith’s
Samitaur Constructs, Frederick and Laurie Smith’s planned 210,000
Samitaur Constructs square ft. office tower -- the Glass Tower -- for Jefferson and La
Cienega, is a Transit-Oriented development sited to take advantage
of the forthcoming Expo Rail Line The project carries with it
aspirations to encourage the ongoing renewal of South LA, an area
plagued with poverty and disinvestment for many years. It is the only
proposed high-rise project in South Los Angeles. It will stimulate
economic development by attracting retail and office tenants,
including small businesses and creative/new media companies
wanting to cluster in a knowledge worker hub. Samitaur Constructs
holds the rights to build 3 towers. The Glass Tower is the 2nd building
on this site, designed by Eric Owen Moss Architects, and will comple-
ment the 3 story Samitaur building that was under construction during
the 1993 LA Riots.
LDC Role:
Financial Advisor
Impact:
Creation of at least 1,200 new jobs is the goal for the project;
additionally, it is the only commercial project planned along the new
Westside EXPO light rail line This is the first new high-rise office
building in South Los Angeles to attract creative/knowledge-based
Tools: workers.
• US Department of Housing and Urban
Development (HUD) Section 108 Loan The Section 108 and BEDI assistance will fund future acquisition,
Guarantee predevelopment and construction costs associated with the Project. A
• Brownfield Economic Development primary impetus for the project was the advent of light passenger rail
Initiative (BEDI) Grant running from Downtown to the University of Southern California along
Jefferson Boulevard to the Beach. The LDC worked with the
The Deal: $10,000,000 developer to secure funds for predevelopment costs and start the
project to retain its entitlements.
www.losangelesldc.com

11. LOS ANGELES LDC, Inc., and SUBSIDIARIES
CONSOLIDATED STATEMENT of FINANCIAL POSITION
ASSETS REVENUE AND EXPENSE 2009
Assets 2009 Revenues
Cash and cash equivalents $ 1,311,343 Interest
Investments 1,114,507 Loans $ 365,035
Notes receivables, less allowances for uncollectible Investments 41,088
loans of $459, $161 and $230,316, respectively 5,582,123
Loan Fees 35,286
Interest receivable 47,729
Service fee income 31,271
Prepaids and other receivables 7,094
Grants 43,000
Investment in 504 ACE Loan Fund I (2004), LLC 244,707
Investments in subsidary 9,200
Property and equipment, net of accumulated
depreciation of $55,766 and $53,568, respectively Other 53,634
Total Assets $ 8,307,503 Total Revenues $ 57,514
Interest expense 214,756
Liabilities
Liabilities and Net Assets Net interest, fees and other income 360,758
Lines of Credit $ 52,600 Allowance for uncollectable loans (378,845)
Accounts payables and accrued expenses 128,891 Net interest, fees and other income
after allowance for uncollectable loans (18,807)
Loan Participations 978,300
Notes payable 3,800,000 Total Functional expenses 538,788
Total Liabilities 4,959,791 Change in net assets (556,875)
Net Assets Net assets, beginning of year 3,904,587
unrestricted -- general $ 3,347,712 Net assets, end of year $ 3,347,712
Total liabilities and net assets $ 8,307,503
www.losangelesldc.com