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BACKING THE BUSINESS OF RURAL AMERICA

BACKING THE BUSINESS OF RURAL AMERICA. PANDOR H. HADJY, DEPUTY ADMINISTRATOR BUSINESS PROGRAMS. 1. Putting Money in the Hands of Rural Business Owners. Number of loans Dollars Obligated Jobs Created/Saved Businesses Assisted Apps and pre-apps pending Dollars pending

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BACKING THE BUSINESS OF RURAL AMERICA

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  1. BACKING THE BUSINESS OF RURAL AMERICA PANDOR H. HADJY, DEPUTY ADMINISTRATOR BUSINESS PROGRAMS

  2. 1. Putting Money in the Hands of Rural Business Owners

  3. Number of loans Dollars Obligated Jobs Created/Saved Businesses Assisted Apps and pre-apps pending Dollars pending Portfolio - # of Borrowers Portfolio – Loan Amount 506 $1,244,618,158 21,296 552 190 $680,889,331 2,299 $5,401,994,463 B&I AccomplishmentsFY 2009 Putting Money in the Hands of Rural Business Owners

  4. B&I Quarterly Loan Obligations $3 billion in lending support Putting Money in the Hands of Rural Business Owners

  5. FY 2010 PROGRAM LEVELS • Business and Industry Guaranteed • Business and Industry Guaranteed – ARRA • Rural Business Enterprise Grants • Intermediary Relending Program • Rural Economic Development Loans • Rural Economic Development Grants • Rural Energy for America Program – Loans • Rural Energy for America Program – Grants • Biorefinery Assistance Program • Repowering Assistance Program • Payments to Eligible Advanced Biofuel Producers $ 993,001,876 $ 1,523,298,274 $ 41,956,000 $ 33,536,000 $ 33.077.000 $ 10,000,000 $ 264,372,580 $ 63,279,580 $ 803,476,177 $ 35,000,000 $ 80,000,000 Putting money in the Hands of Rural Business Owners

  6. Guaranteed Renewable Energy Programs • Section 9003 - Biorefinery Assistance Program • Awarded $159.5 million for 3 advanced biorefinery loan guarantees • Section 9007 -- Rural Energy for America Program (REAP): Loan guarantees of up to $25 million Putting money in the Hands of Rural Business Owners

  7. Number of Grants, Loans, & Amount Projects Combos Amount Leveraged Technology Biomass 320 89,993,200 380,365,833 Wind 361 73,651,189 641,098,744 Solar 274 14,077,343 37,930,249 Geothermal 99 3,080,395 8,374,339 Hybrid 22 2,935,648 86,720,575 Hydropower 4 1,064,432 2,475,253 Subtotal 1,080 184,802,207 1,156,964,993 Energy Efficiency 2,428 80,566,465 192,211,677 EA/REDA 22 2,173,631 Feasibility Study 50 1,244,600 Combined Funding Activities 3,580 268,786,903 1,349,176,670 Renewable Energy Investments, 2003 - 09 Renewable Energy Systems and Energy Efficiency Conversion Projects Putting money in the Hands of Rural Business Owners

  8. ARRA – B&I • Recovery Act Goals: • Create and Save Jobs • Spur Economic Activity • Long-term Economic Growth • Accountability and Transparency Putting money in the Hands of Rural Business Owners

  9. ARRA B&I • 90% Guarantee up to $10 million • 1% Guarantee Fee • No Annual Renewal Fee • 55 points = 90% Guarantee • 20 discretionary priority points if borrower provides quality jobs and at least 1 of the 4 demographic criteria Putting money in the Hands of Rural Business Owners

  10. ARRA B&I Status • 203 projects approved for $695,086,036 or 46% of ARRA B&I funds available • Our goal is to spend 70% of ARRA funds by April 16, 2010 Putting money in the Hands of Rural Business Owners

  11. #2. Access to Loans for Rural Business Owners

  12. Access to Loans Lenders in B&I Guaranteed Loan Program

  13. $53,202,000 $41,628,100 $33,945,000 $29,022,100 $25,054,500 $25,046,832 $24,579,193 $22,713,000 $21,510,000 $20,270,000 RIDGESTONE BANK EXCEL NATIONAL BANK BORREGO SPRINGS BANK COMMUNITY SOUTH BANK AMERICAN TRUST & SAVINGS BANK AMERICAN BANK OF ST. PAUL HIGH TRUST BANK PLAINS STATE BANK BANK OF THE WEST BUSINESS CAROLINA, INC Top 10 B&I Lenders in FY 2009 Access to Loans

  14. Summary of B&I Lender Caseloads Access to Loans

  15. Rural Development State Offices Access to Loans

  16. Top 10 B&I Lenders Access to Loans

  17. Active B&I Lenders in the Continental United States Access to Loans

  18. Secondary Market Access to Loans

  19. Loans Sold on the Secondary Market Yield: • A premium when the loan is sold • Servicing fees for lenders • The opportunity for entrepreneurs to invest in rural America • New partners (and capital) being brought to Rural America • A chance to play a part in the revitalization of depressed rural areas Access to Loans

  20. #3. Listening to Lenders

  21. Report Card: Listening to Lenders

  22. Difficulties With Program Listening to Lenders

  23. Lender Survey Pluses • Knowledgeable Employees • Long Term Loans • Better Rates • Pre-approval process • Larger Loans • More flexibility • Streamlined Process Listening to Lenders

  24. Lender Survey Minuses - Time - Difficulty with Construction Loans - Environmental Assessments - Vague Regulations - Lack of Consistency Listening to Lenders

  25. Program Goals • Program Goals • Enhance Lender Profits • Increase Commercial Credit in Rural Areas • Rural Employment • Helping Business • Stimulating the Economy • “Sustainable Economic Development” “Give a man a fish; you have fed him for today.  Teach a man to fish; and you have fed him for a lifetime”—Author unknown Listening to Lenders

  26. #4. Honoring our Commitment to Customer Service

  27. Reinvigorating our Programs

  28. Initiatives for FY 2010 • The RBS 2010 initiatives involve Change! • Lenders and Associations • Employees • Programs Reinvigorating our Programs

  29. Lender Requested Program Changes • Improve Consistency • Percent of Guarantee • Issuing Guarantee Prior to Construction • Interim Construction Financing • Lender Advocate Reinvigorating our Programs

  30. Initiatives for FY 2010 • Created Business Programs Advisory Teams • State and Field Office Employee Empowerment • Investment in our Staff • Staff Training • Hiring Staff Reinvigorating our Programs

  31. Business Programs Regions Reinvigorating our Programs

  32. Difficulties With Program Honoring our Commitment to Customer Service

  33. Initiatives for FY 2010 • Increase Partnerships • Lender Meetings/Forums • Continuous Customer Feedback Reinvigorating our Programs

  34. Initiatives for FY 2010 • Administrative Program Enhancements • Long Term Program Changes Reinvigorating our Programs

  35. Lender Requested Program Changes • B&I program enhancements • Best Practices of other Government Guaranteed Programs • Program Consistency Reinvigorating our Programs

  36. Initiatives for FY 2010 • B&I program enhancements • Debt Refinancing • Lines of Credit • Preferred Lender Program • Protective Advances • Secondary Market Improvements Reinvigorating our Programs

  37. Continuous Process Improvement Reinvigorating our Programs

  38. No One Can Sit On The Sidelines! Reinvigorating our Programs

  39. Serving as the Advocate for Rural Business

  40. Goals • Improve: • Customer service • Response times • Consistency by the states • More authorities at the lowest level • Timely Loss Payments Serving as the Advocate for Rural Business

  41. RBS ARRA Goals • JOBS, JOBS, JOBS • Record Program Delivery • Service to Communities of Greatest Need • Business Process Improvements • Marketing Improvements • Lender Community Confidence Serving as the Advocate for Rural Business

  42. Success Stories

  43. Summary • Listening to Lenders • Honoring our Commitment to Customer Service • Putting money in the Hands of Rural Business Owners • Access to Loans for Rural Business Owners • Serving as the Advocate for Rural Business

  44. We Want You

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