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NALCAB Summit 2009: Strategies for Community Development Lenders

Learn about key topics discussed at the NALCAB Summit, including intermediary roles, financial sustainability, and future planning for CDCs in tough economic times.

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NALCAB Summit 2009: Strategies for Community Development Lenders

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  1. Surviving Tough Economic Times NALCAB Summit El Paso, TX July 17, 2009

  2. Community Development Lenders • What It Means to be an “Intermediary” • “Matching” Maturities Pressure • Full Recourse Borrowing by LISC • Our Lenders are in “Our Kitchen” • LISC and CDCs are Public Charities • Mission vs. Credit Squeeze

  3. Traditional Conventional Lenders • Consequences of Dissolution/Subsumption of CD Units • Timing is Particularly Bad • Orient New Community Development or Bank Commercial Staff to Our Industry • Get to the Special Asset Folks • Talk about Multiple Pathways to Repayment

  4. How Intermediaries Can Help • Striving to be Patient • Partial paydowns will help • Alternative and/or additional collateral • Development of New Lending Products and Approaches • Policy Advocacy for Community Development • Telling the Responsible Lending Story

  5. Focus on Current CDC Financial Condition • Embracing Current Reality • Transparency or “Circling the Wagons”

  6. Focus on Current CDC Financial Condition Red Flags: • Liquidity Crunch • High Budget to Actual Variance • Revenue Falling Short • Quarterly Internal Statements – How Prompt is the Delivery? • Overdue Audit

  7. Focus on CDC Future • Importance of Cash Flow Projections • Realistic Forecasting • Assumptions • Stress Testing • Contingency Planning • CDC Capacity to Produce Projections

  8. Focus on CDC Future • Future Development Likely at Lower Level • What New Operating Models are Being Explored? • Expanded Program Goals • Leveraging Capacity and Funding Through New Partnerships • New Federal Funding Opportunities • Should Merger or Acquisition be Considered?

  9. LISC Contact Information • www.lisc.org • www.ruralisc.org • http://www.lisc.org/content/publications/detail/8246 “Robust Cash Flow Projection” • http://www.lisc.org/content/publications/detail/7926 “Working with Lenders”

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