Accessing Small Business Loans to Start or Grow Your Business

1. Accessing Small Business Loans to Start or Grow Your Business The Latino Economic Development Center (LEDC) Panel about alternative source of funding September 26, 2013O

2. LENDING PROGRAM • Certified Community Development Financial Institution (CDFI) and SBA small business lender • Program established in 1997 • Provide technical assistance and small business loans between $5,000 - $50,000 • One loan product: fixed, fully-amortizing term loans • 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) plus Baltimore • Interest rates: 9-14 percent • Term: 6 months to 5 years • Processing time: 2-4 weeks • No pre-payment penalty

3. OUR PORTFOLIO • Portfolio at Risk is less than 3 percent • 200 active clients • Average loan size of $12,000 • FY13: Disbursed 120 small business loans • Disbursed $1.9 million in funding • 200+ jobs created or maintained • 30 new businesses created • 95 percent low to moderate income (LMI)

4. FUNDING SOURCES • SBA • CDFI • Banks • Foundations • County • State • Federal

5. OUR PROCESS • $50 application fee • Pull Credit report • Gather documents • Prepare credit memo • Present credit memo • Close Loan

6. SWEET & NATURAL BAKERY

7. LALOS MARKET

8. COLUMBIA HAIR SALON

9. MANDU

10. Lending Clients per Income

11. Portfolio at Risk

12. Contact Information Cesar Lopez, Director of Lending clopez@ledcmetro.org Carlos Arango Small Business Lending Officer, Maryland carango@ledcmetro.org Christina Stockamore Small Business Lending Officer, Washington D.C. cstockamore@ledcmetro.org Pamela Canas Small Business Lending Officer, Virginia. pcanas@ledcmetro.org