CDFA member survey 2011 Business Market Harry Glavan and Ian Best Policy & Research, CDFA

Presentation agenda CDFA annual survey of members Where CDFIs operate Lending Activity Performance Funds, sustainability and income

Participating members

CDFI markets served MicroSME Civil Society ConsumerHome Imp’t BusinessPersonal

Business lenders geographic scope

Lending Activity

Portfolio size and geographic scope Countrywide and nationwide Regional and multi regional Local and county

Scotland 2% N. Ireland 6% Wales 1% North East 10% North West 8% Yorkshire 29% West Midlands 15% East Midlands 4% East England 3% London 10% South East 5% South West 6% Business loans made by number 1,500 loans

Scotland 1% N. Ireland 4% Wales 1% North East 2% North West 16% Yorkshire 34% West Midlands 18% East Midlands 3% East England 3% London 7% South East 2% South West 9% Business loans made by value £24m lent

Micro loan portfolio NO DATA

SME loan portfolio NO DATA

Micro and SME portfolio value Post recession NO DATA

Micro and SME portfolio number NO DATA Post recession

Applications by value – trend £28m £92m £51m £76m

Disbursals by value – trend £15m £32m £28m £24m 37% 35% 47% 53% Conversion rate

Loan conversion rates – value 36% 24% 41% 65%

Loan conversion rates – number 59% 56% 28% 46%

Micro demand – by number

SME demand – by number 42%

Disbursal value – by CDFI

Disbursals by CDFIs – detail <£1m

Disbursal number – by CDFI

Loan conversion rates – by CDFI Average: 52%

Micro avg loan size by CDFI Average £11,300

SME average loan size by CDFI Average £37,000

Proportion of total loans disbursed Start-ups vs existing MicroSME Existing businesses 45% Start ups 55% Existing businesses 84%

Loans to start-up micros – by CDFI Average 54%

Loans to SME start-ups – by CDFI Average 18%

Business customer structure Unincorporated 37% For Profit 34%

Security over business loans

Business customer demographics

AVERAGES MICRO: 14% SME: 13%

APR charged by CDFI AVERAGES MICRO: 14% SME: 13%

APR vs Avg loan size

APR v Portfolio Yield

PERFORMANCE

PAR and Write-off rates

Portfolio at risk and write-offs

Loan officer productivity

SUSTAINABILITY and INCOME

Operational self sufficiency

OSS v loan and CDFI size

Assets and Income

CDFI Fund and Reserves

External funds for operations Total: £3.2m

External funds for capital Total: £14m

Bank to CDFI lending

Earned Income Total: £8.6m

Outputs, Outcomes and Impact

Business lending outputs 2010/11 Reported outputs and outcomes Report rate (%) Loans disbursed (#)1,500100% Loans disbursed (£)£23.1m100% Businesses Created712100% Businesses Safeguarded59695% Jobs created (FTE*)214097% Jobs safeguarded (FTE*)3,37997% Turnover generated£27.3m21% Turnover safeguarded£11.7m15% Funds leveraged£34.9m87%

Scaled up business lending outputs and outcomes 2010/11 Loans disbursed (#) 1,500 Loans disbursed (£) £23.1m Businesses Created 712 Businesses Safeguarded 637 Jobs created (FTEs) 2,168 Jobs safeguarded (FTEs) 3,535 Turnover generated £89.7m Turnover safeguarded £81.6m Funds leveraged £47m

HEADLINE FIGURES As at April 2011 business lenders had 5,461 loans outstanding totalling £75.7m In 2010/11 you: Disbursed 1,500 loans to a value of £23.1m Created and safeguarded 1,349 businesses Created and safeguarded 5,703 jobs Generated and safeguarded £171.3m of turnover Leveraged £47m of additional funding from mainstream banks Every £1 lent: Generated £3.88 of T/O Safeguarded £3.53 of T/O Helped leverage £2.03 from other mainstream banks