Presentation on theme: "Linda Gilbert Regional Lending Manager. WHO ARE WE? Experienced commercial lenders, all with many years working for commercial banks Professionals."— Presentation transcript:
Linda Gilbert Regional Lending Manager
WHO ARE WE? Experienced commercial lenders, all with many years working for commercial banks Professionals willing to talk to the potential borrower about a business loan transaction before they ever have to fill out a piece of paper We are committed to making the process streamlined, efficient, non-bureaucratic We strive to be timely, creative, honest, & direct in our responses
VSBFA KEY DRIVERS 5 C’s of Credit (character, capacity, capital, conditions, & collateral) Sufficient cash flow to repay debt Economic (or Environmental) benefit to the Commonwealth
A VARIETY OF PROGRAMS TO FIT MANY FINANCING NEEDS The primary mission of the VSBFA is to work in partnership with banks & credit unions to provide loans to businesses in support of Virginia’s economic development efforts. We fulfill this role by providing credit enhancements to banks in the form of loan participations, cash collateral, loan guaranties, and loan loss insurance programs. We provide benefit by mitigating bank credit risk and covering the collateral shortfall. We provide benefit to Virginia’s businesses by addressing a fundamental need for business growth: Access to Capital.
AS A RESULT OF OUR LENDING EXPERTISE, WE ALSO ADMINISTER LOAN PROGRAMS FOR OTHER STATE AGENCIES Dept. of Social Services – Child Care Financing Program Dept. of Small Business & Supplier Diversity– P.A.C.E. Capital Access Program Tobacco Commission – Tobacco Capital Access Program Dept. of Environmental Quality & Dept. of Conservation & Recreation – Environmental Compliance Assistance Fund (direct loan from VSBFA)
ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND Direct loan program developed by DEQ & DCR in conjunction with the VSBFA in June of 2000 Codified in the Virginia Code § Funded through a one-time commitment from DEQ’s Virginia Environmental Emergency Response Fund Provides Virginia businesses and Virginia farmers with direct loans for: Equipment to comply with the federal Clean Air Act Equipment to implement voluntary pollution prevention measures Equipment or structures to implement voluntary agricultural best management practices (BMP’s)
ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND Eligible Borrowers: Small businesses with 100 or fewer full-time employees and is a small business concern as defined in the federal Small Business Act Eligible Projects: Project must be certified by DEQ for air quality or pollution prevention projects, or by DCR for agricultural best management practices Examples of eligible loan uses: Paint spray guns Dry cleaning machines Gas pump emission control systems Printing equipment Truck/bus auxiliary power units Agricultural BMP’s
ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND Loans may not be used to: Comply with an enforcement action Fund under or above ground storage tank replacement/compliance Finance a start-up business Refinance equipment already on site Provide working capital
ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND Terms Loan Amount: Up to $100,000, $5,000 minimum Term: Amortized to match the borrower’s ability to repay the loan and/or to coincide with the useful life of the assets financed. Maximum 10 year maturity/amortization. Fees: Application fee of $30.00 Interest Rate: 3% fixed for the life of the loan
ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND Helping Make CREP Even Easier Farmers seeking to participate in the Farm Service Agency’s (FSA’s) Conservation Reserve Enhancement Program (CREP) are elgible for ECAF loans. Farmers participating in CREP may receive an ECAF loan to cover the upfront costs such as: fencing, wells/pump houses/ watering stations, & riparian buffers. The ECAF loan can cover the upfront costs of these items preventing the farmer from having to come out of pocket. The VSBFA takes a lien on the assets financed and an assignment of the CREP grant. Once the assets are in place and the CREP payment is made, the ECAF loan is repaid with a direct payment from FSA to the VSBFA.
ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND Fund Activity 43 loans funds totaling $2.2 million $ 2.2 million $356,000 remaining to be loaned
QUESTIONS? LINDA GILBERT REGIONAL LENDING MANAGER THANK YOU FOR YOUR TIME