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A Division of Region IV Development. What is Region IV Development?. Community and economic development since 1975 Networking Land use planning Workforce development Infrastructure planning and financing Business lending since 1984 SBA since 1984 Revolving Loan Fund (RLF) since 1986
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What is Region IV Development? • Community and economic development since 1975 • Networking • Land use planning • Workforce development • Infrastructure planning and financing • Business lending since 1984 • SBA since 1984 • Revolving Loan Fund (RLF) since 1986 • Intermediary Relending Program (IRP) since 2005 Commercial Lender Presentation
Business Lending • Region IV Development is a Certified Development Company (CDC) that is licensed by the SBA to administer the SBA 504 program in Idaho. • CDC’s process, approve, close and service the loans on behalf of the Small Business Administration. The CDC is the direct lender for the SBA 504 loan program. • Region IV also administers and packages loans utilizing other lending programs which will be discussed later this morning. • These financing tools give us the opportunity to assist businesses find financing solutions. Commercial Lender Presentation
www.businesslendingsolutions.org • Resources (links, forms, etc.) • Program descriptions • Contact information Commercial Lender Presentation
US Small Business Administration 504 Loan Program • We process, approve, close and service 504 loans on behalf of the US Small Business Administration. • The SBA 504 loan program provides subordinated, long-term, low fixed-rate financing for qualified applicants and projects . • Eligible projects are for the fixed assets only. • Maximum SBA funding to a borrower is $2,000,000 (rural) • Currently, most fees have been abated. Current Effective Rates: 20 years - 5.28% 10 years - 4.92% Commercial Lender Presentation
The Revolving Loan Fund (RLF) • Business Lending Solutions administers this loan program which can be utilized for: • Real estate acquisition and improvement • Working capital • Equipment • Inventory • Maximum loan amount is $150,000 • Maximum amortization: 5 years for equipment and working capital; 15 years for real estate. • Funds from the RLF can be used in projects located in the following Idaho counties: Camas, Cassia, Gooding, Jerome, Lincoln, Minidoka, Twin Falls, and the southern portion of Blaine County. (south of Muldoon Canyon Road – Bellevue.) • We currently have $131,840 available to lend. Commercial Lender Presentation
USDA Intermediary Re-lending Program (IRP) • Business Lending Solutions administers this program which provides limited funds for loans to small businesses in rural locations to create and retain employment. Eligible uses include: • Real estate acquisition and improvement • Equipment • Working capital • Maximum loan amount is $150,000 • Maximum amortization: 5 years for equipment and working capital; 15 years for real estate. • Funds from the IRP can be used in projects located in the following Idaho counties: Blaine, Camas, Cassia, Gooding, Jerome, Lincoln, Minidoka and Twin Falls (excluding the City of Twin Falls). • We currently have $218,230 available to lend. Commercial Lender Presentation
Packaging for USDA Business and Industry Loan Program (B & I) • Business Lending Solutions packages loans under the U.S. Department of Agriculture Business and Industry Loan Program. This program offers guarantees to lenders who make loans to businesses in rural communities. Eligible uses of loan proceeds include: • Real estate acquisition and improvement • Equipment • Working capital Under certain conditions, refinancing of existing debt is allowed. Commercial Lender Presentation
Packaging for Idaho-Nevada Community Development Financial Institution (CDFI) Business Lending Solutions prepares (and services) loan packages for the CDFI which provides community development financing for affordable housing projects and small business ventures. The Idaho-Nevada CDFI is a U.S. Department of Treasury designated Community Development Financial Institution and a Community Development Entity. The Idaho-Nevada CDFI focuses its lending and services primarily in those areas of Idaho and Nevada designated by the U.S. Department of Treasury as CDFI eligible. Commercial Lender Presentation
Packaging for US Small Business Administration 7(a) Loan Programs We package SBA 7(a) loans which can be used to finance needs for real estate, equipment, working capital, inventory, eligible franchises, business acquisition, ownership buyout, etc. Commercial Lender Presentation
The Process • We are available to discuss the transaction at the beginning of the process • We can assist with topics including structure, eligibility and any other questions you may have prior to and during underwriting • We are available to meet with you to discuss all loan options • We will assist in the completion of required paperwork and assemble the entire package for bank underwriting • Once the loan is approved by the CDC and/or bank, we will submit the loan to the appropriate agencies for review and approval Commercial Lender Presentation
Lender Training & Roundtable American Recovery & Reinvestment Act of 2009 Ketchum– May 15, 2009
Questions and Open Discussion Commercial Lender Presentation
