Stable Housing. Thriving Businesses. Strong Communities. The Latino Economic Development Center (LEDC) Cesar Lopez Director of Lending and Small Business Development Rising the Bar – Transforming communities with Capital and Leadership NALCAB Conference November, 2014

Stable Housing. Thriving Businesses. Strong Communities. What we do?: LEDC provides services in four fields: Small Business Development Small Business Lending Homeownership & Foreclosure Counseling Affordable Housing Preservation

Stable Housing. Thriving Businesses. Strong Communities. SMALL BUSINESS DEVELOPMENT & LENDING SERVICES

Stable Housing. Thriving Businesses. Strong Communities. LENDING and SBD PROGRAM  Certified Community Development Financial Institution (CDFI) and SBA microlender.  Program established in 1997  Provide technical assistance, training and small business loans between $5,000 - $50,000  Work with both start-up and existing small business owners who are underserved by mainstream financial institutions  Serve the entire Washington Metro area (DC, VA, MD)  In-house team of underwriters  Interest rates: 9-14 percent  Term: 6 months to 5 years  Processing time: 2-4 weeks  No pre-payment penalty

Stable Housing. Thriving Businesses. Strong Communities. OUR PORTFOLIO Current portfolio size: $2.9million  Portfolio at Risk is less than 5 percent  265 active clients  Average loan size of $15,000  FY13: Disbursed 132 small business loans  Disbursed $1.95 million in funding  400+ jobs created or maintained  25 new businesses created  95 percent low to moderate income (LMI)

Stable Housing. Thriving Businesses. Strong Communities. SBD Results FY14 SBD FY14 DCMDTOTAL FY15 Metrics (Outputs) # workshops (one-time and multi-session)32 64 # clients trained # of Training Hours Average Customer Service Index444 # clients received TA

Stable Housing. Thriving Businesses. Strong Communities. FUNDING SOURCES SBA CDFI Banks Foundations County State Federal

Stable Housing. Thriving Businesses. Strong Communities. OUR PROCESS $50 application fee Pull Credit report Gather documents Prepare credit memo Present credit memo Close Loan 3 percent closing fee

Stable Housing. Thriving Businesses. Strong Communities. Lending Clients per Income

Stable Housing. Thriving Businesses. Strong Communities. Major Lessons Bilingual Staff Focus on Business Model and Cash Flow Less emphasis on Collateral or Credit Score Low documentation cost Rapid response to late payments B2B marketing and outreach

Stable Housing. Thriving Businesses. Strong Communities. CONTACT INFO: Cesar Lopez Director of Lending And Small Business Development Latino Economic Development Center MD Address: th Street NW Washington DC 20008