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