1.
Northwest Commission Small Business Finance Program Daryl Coyne Manager, Loan Programs John Klinger, Loan Specialist Lori Mild, Loan Servicer Loan Workshop May 21, Cross Creek Resort

3. Northwest Commission Programs
Northwest Commission Programs
Economic Development
Government Contracting
Loan Program
International Marketing
Business Attraction
Community Development

4. OVERVIEW of Loan Program Lending since early 1980’s
OVERVIEW of Loan Program
Lending since early 1980’s
Encourage start-up ventures
Expansion of existing companies
Job creation/retention

5. FEDERAL and STATE SOURCES
FEDERAL and STATE SOURCES
Economic Development Administration
Appalachian Regional Commission
US Department of Agriculture
Small Business Administration (Microloan)
PA Department of Community & Economic Development

6. Land & Building – up to 15 year term
ELIGIBLE PROJECTS and TERMS
Land & Building – up to 15 year term
- Acquisition, construction, renovation
Machinery & Equipment – 5, 7 or 10 year term
- New/used
WORKING CAPITAL – 3 year term
- Major expansions

7. Revolving Loan Fund (RLF) - 4 points below prime (min 4%)
RATE
Revolving Loan Fund (RLF) - 4 points below prime (min 4%)
Small Business First (SBF) - 3%
MAXIMUM LOAN
Up to $200,000
SBF 50% eligible costs (whichever less)
RLF 50% eligible costs (whichever less)
COLLATERAL
Primarily subordinate to banks
Shared liens with other ED programs
(excluding PIDA)

8. Microloan Program Loans up to $20,000
Microloan Program
Loans up to $20,000
Total Project Cost less than $105,000
Interest Rate – 6% presently
Term – up to 5 years
Loans must be secured
Business Plan reviewed by SBDC
Eligible Uses
Machinery & Equipment
Working Capital

9. Genesis Loan Fund Clarion County only Loans up to $10,000
Genesis Loan Fund Clarion County only
Loans up to $10,000
Interest Rate – Two points below Prime (min 4%)
Term – up to 4 years
Loans must be secured
Business Plan reviewed by SBDC (start up ventures)
Eligible Uses
Machinery & Equipment
Inventory

10. Application Process Complete applications are due first of month
Application Process
Complete applications are due first of month
Loan meetings are generally on fourth Tuesday
Borrower attends loan meeting
DCED loans are mailed to State for final approval
Borrower will be required to substantiate costs in the application and at closing
Borrower can not access same loan fund for one year from closing

11. Three-Year Financial Statements Corporate Tax Return
REQUIRED INFORMATION
Three-Year Financial Statements
Corporate Tax Return
In-House Financial Statements (within 90 days)
Personal Financial Statements (20% or greater ownership)
Personal Tax Return
Business Plan (if start up venture)
Resumes of Principals and Management (management ability)
Description of Project
Breakdown of Costs (Bids, Quotes, Sales Agreement, etc.)

12. Six Commercial Lenders Three Private Industry Two Board Members
LOAN COMMITTEE
11 Members
Six Commercial Lenders
Three Private Industry
Two Board Members

13. CURRENT PORTFOLIO (February 2009)
CURRENT PORTFOLIO (February 2009)
195 Loans - $15.7 million
110 RLF - $ 7.6 million
85 SBF - $ 8.1 million
24 Microloan - $288,587
Jobs:
Promised 1,185
Created 1,660
Retained 3,448

14. Northwest Pennsylvania Regional Planning & Development Commission
Northwest Pennsylvania Regional Planning & Development Commission
Small Business Finance Program Daryl Coyne
Manager, Loan Programs
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