Great Rivers Community Capital - a Justine Petersen Company

1. Great Rivers Community Capital- a Justine Petersen Company Sheri Flanigan-Vazquez Economic Development Director (314) 664-5051 sflanigan@justinepetersen.org

2. Mission Asset Development to connect institutional resources to the needs of low- and moderate-income people in order to build assets and create enduring change

3. Target Population • 80% African-American • 80% Low to Moderate Income ( under 80% of the median income) • 68% Female-Headed Households

4. Justine Petersen Products • Homeownership • Micro-enterprise • Individual Development Accounts • Great Rivers Community Capital, a wholly owned subsidiary

5. Justine Petersen Results • Nearly ten years of operations • 2,500 home purchases • $2.5 million originated in 350 micro-loans • $1.5 million asset purchases by 500 Individual Development Account holders

6. Demand for Lending Institution • One-on-one counseling model • Reserve Account Relationship – first contact for emergency funding • Lack of access to affordable capital • Low credit score (median 580) • Low income • Limited collateral

7. Great Rivers Community Capital • Founded to formalize lending activities of Justine Petersen • Incorporated in April 1999 • Received Community Development Financial Institution (CDFI) Fund Technical Assistance Award in 1999 • Became certified CDFI in August 2000

8. CDFI Certification • Primary Mission Test • Must have primary mission of promoting community development • Financing Entity Test • Must have staff and funds available to originate loans • Target Market Test (geographic or low-income) • Must direct 60% of total activities toward serving target market

9. CDFI Certification • Development Services Test • Must provide counseling to borrowers • Accountability Test • Must maintain accountability to target market (Board composition) • Non-governmental Entity • Must not be controlled by one or more governmental entities

10. Initial Capitalization • $660,000 CDFI Fund Core Award • $500,000 10 year balloon, 1% interest loan • $150,000 grant • $10,000 additional technical assistance • CDFI Funds must be matched by local investments at the same terms (does not include technical assistance)

11. Initial Capitalization • Justine Petersen staff time and overhead • Justine Petersen Retained Earnings • State of Missouri Community Bank 50% Tax Credit Program leveraged bank investment at 1%, ten year term • Foundation investment at 3%, five year term

12. Loan Products • First Mortgages • Designed as one to two year balloons with the goal of refinancing the customer into A paper • Second Mortgages • Down payment / closings costs, home repair, foreclosure prevention

13. Loan Products • Business Loans • Most business lending facilitated through Justine Petersen’s SBA Micro-loan Intermediary • Consumer Loans • Unsecured debt consolidation primarily for pre-purchase homeownership clients • Credit Building Loans • $150 loan with goal to build twelve month credit line

14. Great Rivers Loans Originated • $1.5 Million originated to 250 borrowers

15. Developed Capacity • Underwriting • Relationship Lending • Assessing comprehensive fiscal health • Determining “essential loan amount” • Cross selling Justine Petersen products for a long-term solution

16. Developed Capacity • Loan Servicing • Software • Monthly statements • Standardized notes and deed of trust • Securing Collateral • Reporting to credit bureau • Collections • “Community Money” • Restructure and work-outs

17. Investment Opportunities • Future capitalization plans • Seek low-interest loans from foundations or companies interested in socially responsible investing • Great Rivers Community Reinvestment • Missouri State Family Development Account tax credits • 50% State Tax Credit

18. For More Information Robert F. Boyle Sheri Flanigan-Vazquez Executive Director Economic Development Director rboyle@justinepetersen.orgsflanigan@justinepetersen.org (314) 664-5051 www.justinepetersen.org