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MARKETING REVOLVING LOAN FUNDS IARC Revolving Loan Funds Conference April 10, 2007

MARKETING REVOLVING LOAN FUNDS IARC Revolving Loan Funds Conference April 10, 2007. Presentation By: Jerry Schroeder Economic Development Director. ECONOMIC DEVELOPMENT. ECIA was designated in 1978 as a Regional Economic Development District

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MARKETING REVOLVING LOAN FUNDS IARC Revolving Loan Funds Conference April 10, 2007

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  1. MARKETING REVOLVING LOAN FUNDS IARC Revolving Loan Funds Conference April 10, 2007 Presentation By: Jerry SchroederEconomic Development Director

  2. ECONOMIC DEVELOPMENT • ECIA was designated in 1978 as a Regional Economic Development District • ECIA Business Growth, Inc. was established in 1983 • Non-Profit Certified Development Corporation (CDC) • Purpose to promote the expansion of area businesses and the creation of new jobs

  3. ECONOMIC DEVELOPMENTContinued • Board of Directors governs CDC • ECIA provides staff and services • Since 1983 $52,064,733 in loans approved • 4,344 jobs created or retained

  4. ECONOMIC DEVELOPMENTContinued • ECIA Business Growth, Inc. operates business loan programs • SBA 504 Program • EDA-RLF and Regional IRP RLF • Jackson County Revolving Loan Fund • Dubuque County (IRP)

  5. MARKETING RLFS • IT STARTS WITH YOUR RLF PLAN • I. Program Elements of the Plan • Goals And Objectives • Area's Financing Problems • Targeting Criteria • Standards for the RLF Portfolio • Financing Policies • Related activities (ex: Technical Assistance)

  6. MARKETING RLFS • IT STARTS WITH YOUR RLF PLAN • II. Administrative Elements of the Plan • Loan Administration Board • Loan Selection and Approval Process • Loan Servicing • Sources to Cover Administrative Costs • Recapitalization Strategy

  7. MARKETING RLFS • IT STARTS WITH YOUR RLF PLAN • III. Other Requirements • Non-Relocation • Conflicts of Interest • Civil Rights • Environmental Considerations • Amendments

  8. MARKETING “Determining the right target audience is probably the most important part of your marketing efforts, because it doesn’t matter what you’re saying if you’re not saying it to the right people.”

  9. MARKETING RLFS • STEP 2: THE MARKETING PLAN ▪ Market Review ▪ Competitive Review ▪ Product & Business Review ▪ Strengths, Weaknesses, Opportunities, Threats

  10. MARKETING RLFS • STEP 2: THE MARKETING PLAN cont. ▪ Goals and Objectives ▪ Strategies ▪ Action Plan and Implementation ▪ Evaluation

  11. MARKETING RLFS • STEP 3: IMPLEMENTATION and TIMELINE January • Join Chambers of Commerce • 2 local lender visits • Press Release on available funds • Develop RLF Summary Sheet February • 2 local lender visits • Write newspaper article • Develop E.D. brochure

  12. MARKETING RLFS • EDA REVOLVING LOAN FUND • Intent is to provide gap financing for fixed asset expansion projects • Goal is one FTE job created retained for each $100,000 provided within two years • Funds targeted to manufacturing or service companies • Leverage two private dollars to one RLF $ • Size $50,000 to $200,000 • Working capital is eligible • Term is flexible, typically seven years • Interest rate 4%-8%

  13. MARKETING RLFS • DUBUQUE COUNTY REVOLVING LOAN PROGRAM • Project must be outside City of Dubuque • Loans to manufacturers rather than retail or service • Loans to E.D. Groups for Spec. Buildings, land • Fixed asset loans (land, building, and equipment) • Interest rate 4-8% • One job for each $15,000 provided within two years of loan closing

  14. MARKETING RLFS • DUBUQUE COUNTY REVOLVINIG LOAN PROGRAM CONTINUED • Starting wage of each job must be at 75% of the County average • Max loan of $250,000 • Personal guarantees required • Loans must be secured with mortgages or liens

  15. MARKETING RLFS • Jackson County Revolving Loan Fund • Financing of fixed assets preferred (equipment) • Fixed asset projects (land, building, equipment) • Goal is one FTE job created or retained for each $50,000 • Funds targeted to manufacturing or service companies • Limited strictly to projects within Jackson County • Finance working capital only in unusual circumstances • Term is 3-15 years • Interest rate 4%-8% • Personal guarantee usually required

  16. MARKETING RLFS • ECIA Regional Revolving Loan Fund • Projects anywhere in the 5-County ECIA region, but must be outside Cities of Clinton, Dubuque • Targets creation/retention of manufacturing jobs • Goal to create/retain one job for each $100,000 lent • Term is flexible, typically seven years • Interest rate 4.5-8% • Personal guarantees required

  17. MARKETING RLFS • STEP 3: IMPLEMENTATION TIMELINE cont. March • Mailing to Accountants • Press release on approved loans April • 2 local lender visits • Conduct Economic Development Summit with partners

  18. MARKETING RLFS • STEP 3: IMPLEMENTATION TIMELINE cont. November • Send out postcards to manufacturers • Press release on approved loans • Local lender visits

  19. MARKETING RLFS

  20. MARKETING RLFS • STEP 3: IMPLEMENTATION TIMELINE cont. December • Christmas Cards to borrowers • Local lender visits • Newspaper add on RLF funds • Evaluation Cards to borrowers

  21. MARKETING RLFS

  22. MARKETING RLFS

  23. MARKETING RLFS • OTHER SERVICES • ECIA Staff assists with grant writing and servicing expertise for such programs as: • CEBA • CDBG EDSA • CDBG PFSA • RISE • TIF • EDA Public Works Since 1983, ECIA has assisted in obtaining $15,363,000 in CEBA and CDBG EDSA/PFSA Grants with over $343,000,000 total investment and creating over 4,900 jobs within the five county region.

  24. SUCCESS STORIES

  25. SUCCESS STORIES

  26. SUCCESS STORIES STAMPEDE PRODUCTS, Camanche, Iowa 3 RLF equipment loans from ECIA Business Growth Sales have increased seven-fold since 1995 Employment has grown from 20 to 84 employees Product numbers have increased from 480 to 12,500 Can produce a bug shield every 9 seconds

  27. SUCCESS STORIES

  28. SUCCESS STORIES

  29. SUCCESS STORIES

  30. SUCCESS STORIES

  31. SUCCESS STORIES

  32. “The RLF loans from E.C.I.A. Business Growth, Inc. have allowed us to purchase equipment and greatly expand our product offerings. The funds are responsible for the majority of the growth in our sales and employment.” Loyal Tullius, President Stampede Products SUCCESS STORIES

  33. VISIT EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION AT THE WORLD WIDE WEB ADDRESS BELOW WWW.ECIA.ORG www.prosperityeasterniowa.org Phone 563-556-4166

  34. Jerry Schroeder jschroeder@ecia.org E.C.IA. Business Growth, Inc. 3999 Pennsylvania Avenue Suite 200 Dubuque, Iowa 52002 Phone 563-556-4166 CONTACT INFORMATION

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