2010 Northwest Ohio Manufacturing Forum & Expo Jeremy Gutierrez November 12, 2010

SBA 7(a) loan program: Loan Amounts- Maximum loan amount historically = $2 Million. As part of the Small Business Jobs Act recently passed by Congress the limits were permanently increased to $5 million. Use of Proceeds- Acquisition or construction of real estate, machinery and equipment, furniture and fixtures, inventory, working capital, business acquisitions, business debt refinance, leasehold improvements, short or long term working capital. Loan funds may not be used to pay delinquent taxes or flow back to any principal of the company. Maturities - Maximum terms are determined by the use of loan proceeds and the useful life of the assets being financed. Weighted average terms are allowable and are encouraged. Generally, maximum terms by use are; Working Capital years; Equipment years; Real Estate up to 25 years; Leaseholds 3 to 7 years; business acquisition up to 10 years on the non-real estate portion. Interest Rates– Rates are generally variable (based on an index like Prime or the SBA LIBOR). Allowable rate spreads are determined by the risk associated with the loan.

SBA 7(a) loan program: SBA’s 7(a) Loan Program serves as the SBA’s primary and umbrella business loan program to help eligible and qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency’s most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes. Lenders utilize this program to offset risks associated with lending to small business. The lender’s risk is offset by SBA’s current “guarantee” of up to 90% of the loan amount.

SBA 7(a) loan program: Fees SBA Charges the Borrower– A one-time SBA Guaranty Fee has historically been charged as follows: –Gross Loan Size of $150,000 or less = 2.00% of the guaranteed portion –Gross Loan Size over $150,000 up to $700,000 = 3.0% of the guaranteed portion –Gross Loan Size over $700,000 up to $2,000,000 = 3.5% of the guaranteed portion (+ additional 0.25% on the guaranteed amount > $1MM) NOTE: The American Recovery and Reinvestment Act (Small Business Jobs Act) temporarily eliminates all guarantee fees on loans approved by SBA until 12/31/10 or the appropriate funds are exhausted. Subsidy Recoupment Fee (AKA Prepayment Penalty) on loans approved with maturities of 15 years or more if the borrower voluntarily prepays 25% or more of its loan in any one year during the first three years 5% during the first year, 3% during the second and 1% during the third.

SBA 7(a) loan program: Collateral – SBA loans must be fully secured (or secured to the extent possible) on a liquidation basis with all available and worthwhile collateral (both business and personal). Guarantors – Anyone owning 20% or more of the business must provide a personal guarantee. Key management may also be asked to guarantee under certain circumstances. Eligibility – There are four basic areas of eligibility factors to consider for SBA lending purposes. These are: –Size and Affiliation –Credit Elsewhere –Type of Business –Use of Proceeds IRS Verification– SBA requires that the financial statements of the business be verified against IRS tax transcripts via use of the IRS Form 4506-T

State of Ohio Grow Now Program: GrowNOW provides Ohio small businesses with a 3 percent interest rate reduction on bank loans when they are creating or retaining jobs. When the Treasury invests that money at a financial institution in the form of a certificate of deposit, they agree to take a lower rate of return on the investment. In return, the financial institution agrees to pass along that 3 percent interest rate savings in the form of an interest rate reduction for the small business borrower. With this model, the state earns less-than-normal interest on its money, but it is also leveraging resources in local economies to boost job creation. For each job your business creates or retains, GrowNOW will reduce your interest rate by 3 percent in $50,000 increments, up to $400,000 maximum (8 jobs). Three percent off of a $400,000 loan could mean an extra $24,000 in your pocket over the next two years.

State of Ohio Grow Now Program: Your business must meet the following criteria: – Less than 150 employees –Offices in Ohio –Organized for-profit – No lines of credit –Must be a fixed rate loan: Non-changing rate for the period of the deposit –The loan must be in the name of the business (not in a the name of a holding company)

State of Ohio Grow Now Program: How does GrowNOW help financial institutions? –It increases the amount the financial institution has available to loan out to other businesses. –It counts toward the financial institution's Community Reinvestment Act (CRA) dollars. –It brings a deposit the financial institution wouldn't already have. –If the borrower owes the financial institution less, risk is decreased.

State of Ohio Capital Access Program: Reserve account contributions - The lender has a reserve account in the name of the Director of the Ohio Department of Development established. The borrower contributes 1.5%-3% of the loan amount. Lender determines the percentage. Borrower can include contribution in the loan. Lender must match the borrower's contribution and may recover all or part of its contribution from the borrower in any agreed upon manner. The State contributes 10% of the loan amount. A higher amount of the loan amount may be contributed for all state certified minority businesses enrolled. Fees - normal and customary fees may be charged by the lender Enrollment - Lender must submit Capital Access Program Loan Enrollment forms to the ODOD

State of Ohio Capital Access Program: Purpose - The program provides a unique loan "guarantee" reserve account to recover losses from loans enrolled to the program. The reserve account serves to encourage lenders to extend financing to small businesses and non-profits. Use - Proceeds may be used for working capital lines of credit, or the purchase or construction of fixed assets such as buildings and equipment. Refinancing of other lenders loans is also eligible. Eligibility - Small business with annual sales less than $10 million. The borrowers principal place of business must be in Ohio and the borrower must create or retain jobs. Terms - Loan terms are determined by the lender Loan amounts - Maximum $250,000 for working capital; maximum $500,000 for fixed assets

Contact Information Name: Jeremy A. Gutierrez Phone: FAX: Huntington National Bank