SBA Lending Division SBA Lending Division October 2015

Proprietary 2 Convenience & Advantage of TD Convenient locations Maine to Florida Full range of financial products serving 18+ million customers Dedicated SBA Loan Officers, Underwriters, Closers & Servicing team Top SBA Lender in the US #1 SBA Lender in New England #1 SBA 504 Lender in Capital District 533 closed loans Preferred Lender status from the SBA

Proprietary 3 How can SBA products support your customer’s credit needs? The U.S. Small Business Administration’s Goals:  Educate, counsel, assist, protect and promote business enterprise  SBA provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs, including debt financing, surety bonds, and equity financing SBA Loan parameters provide more flexible options versus conventional lending!  Lower cash injection requirements into a project  Higher LTV  Longer Terms/Maturity  Lower monthly payments

Proprietary 4 Product Offering TD Bank, SBA Division Express Loans Available with 504 & 7a Loans  7a  504  Express Loans  USDA  CAP Lines  EWCP *All loans subject to approval

Proprietary 5 Use of Proceeds We use SBA products as a credit enhancement and not a credit shield Equipment, Inventory and Leasehold Improvements Construction and Renovation Partner Buyout and Management Succession Working CapitalLine of Credit Commercial Real Estate Acquisition Debt Refinance Working Capital and Line of Credit available in conjunction with the products above Franchise Financing

Proprietary 6 TD Bank, SBA Division 7a Loan Summary Use of Proceeds: Real Estate Purchase, Refinance, Construction, Business Expansion, Equipment Purchase, Business Acquisition, Partner Buyout & Franchise Financing. Loan SizeAdvance Rate TermsAdvance Rates FeesRates $350,000 To $5,000,000 SBA Guarantee up to 75%, Max Guarantee $3,750,000 Up to 90% of project costs Up to 25 Years Fully Amortized No Balloons Up to 90% on Real Estate Up to 100% on Machinery and Equipment Up to 85% on Business Acquisition One Time SBA Guarantee Fee Paid to the SBA Construction Fee may vary Variable and Fixed Working Capital and Lines of Credit available with 7a Loans. *All loans subject to approval

Proprietary 7 SBA 7a vs. Conventional Conventional Purchase Price: $1,000,000 Cash Injection: $250,000 Fee: $10,000 Closing Costs (est.) $15,000 Loan Amount: $750,000 *Monthly Payment: $4,950 Total cash required: $275,000 * loan based on a ten year term with a 20 year amortization at indicative rate of 5%. SBA Purchase Price: $1,000,000 Cash Injection: $100,000 SBA Guaranty Fee: $25,000 Closing Costs (est.) $15,000 Loan Amount: $940,000 *Monthly Payment: $5,772 Total cash required: $100,000 *loan based on a 25 year term with a 25 year amortization at indicative fixed rate of 5%

Proprietary 8 TD Bank, SBA Division 504 Loan Summary Loan SizeAdvance Rate TermsLoan to Value FeesRates 1 st Mortgage No Maximum 2 nd Mortgage $5MM to $5.5MM Up to 90% of project costs Up to 25 Years Fully Amortized No Balloons Up to 90%The CDC Loan Fee is.05% of the 1 st Mortgage Variable and Fixed Rates Express Loans available with 504 Loans. *All loans subject to approval

Proprietary 9 Why use a SBA 504 Loan? Project Costs: Building Purchase: $4,000,000 Renovations: $ 450,000 Closing Costs: $ 50,000 TOTAL:$4,500,000 Conventional Bank Financing Bank Loan (75%): $ 3,375,000 Borrower Equity (25%): $ 1,125,000 $ 4,500,000  The 504 loan requires lower down payment, conserves working capital and stabilizes cash flow by keeping the cash in the business.  Scenario above: Conventional lending requires $675,000 more to close.  How many business owners have that much cash?  Of the ones who do have that cash, how many can afford to pull that much from their business and continue daily operations without significant impact?  Of the declined deals you’ve seen over the years, how many do you think could have been saved with the 504? How many more deals can you close moving forward? SBA 504 Financing Bank 1st Loan (50%): $ 2,250, nd Loan (40%): $ 1,800,000 Borrower Equity: $ 450,000 $ 4,500,000

Proprietary 10 TD Bank, SBA Division SBA Deals Franchise Day Care $3,286,000 7a – 22 years Real Estate & Equipment Franchise Restaurant $2,221,500 7a – 14 years RE Purchase & Construction Urgent Care $1,680,000 7a – 20 years Refinance Funeral Home $1,440,000 7a – 18 years Construction Food Wholesaler $3,000,000 7a – 25 years RE Purchase & Construction Retail Store $1,485,000 7a – 25 years Real Estate Purchase

Proprietary 11 Franchise Concepts

Proprietary 12 Competitive Advantages of TD Bank SBA Advantages Size Centralized Credit & Closing Process Footprint Presence Diversified Product Platform Referral Fees Industry Rating Entrepreneurial Sales Approach

Proprietary 13 TD Bank SBA Division Contact Information : *All loans subject to approval John Konevich, Vice President SBA Division Mobile: Office: Remember to Complete the Speaker Survey: mvm15.bfbootcamp.net / ‘click’ on speakers / select your speaker