lewis & clark regional development council small business support
TRANSCRIPT
• Short-Term Financing• Revolving Loan Funds
• Economic Development Administration
• USDA Rural Development – Intermediary Revolving Loan Funds
• Community Development Block Grant
• US Department of Treasury – State Small Business Credit Initiative
• Infrastructure Grants• Community Development Block
Grant
• Technical Assistance• Small Business Development
Centers• SCORE
• Long-Term Financing• Small Business
Administration 504 Program• Long-term
• 10 year term• 20 year term
• Fixed rate• 10yr – 4.29%• 20yr – 4.26%
• Funded through sale of debentures
• Housing• Single Family
Home Ownership• DREAM Fund
• Multifamily Rental Financing
• DREAMII Fund• Multifamily Housing
Development• Affordable Housing
Preservation• USDA 515
Acquisition/Rehabilitation
About LCRDC
History
– Created with five counties in 1969– Incorporated as a 501(c)4 Non-Profit
with ten counties in 1973– Designated as an Economic
Development District in 1973– Authorized by the State Legislature as a
Regional Council in 1977– Obtained first revolving loan fund in
1993
About LCRDC
Board of Directors
– 35 Member Board of Directors• Local elected officials• Members representing specific interests
– Business– Farm– Tribal
Who does LCRDC serve?
The Council provides services to its ten member counties
Economic Development
Small Business LoansReal EstateEquipmentInventoryWorking Capital
What does LCRDC Do?
– Community Development– Infrastructure – Public Safety– Housing
– Economic Development– Business Loans– Technical Assistance
Community Development
– The primary Funding source for Community Development programs is the Community Development Block Grant (CDBG)
What Does CDBG Fund?
– Water and Sewer Projects
– ADA Accessibility
– Fire and Ambulance Districts
North Dakota Opportunity Fund (NDOF)
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Overview
Capitalization– State Small Business Credit Initiative
• Jobs Act of 2010– $9.7 Million dollars
Purpose– Provide flexible and accessible loans – primarily gap financing– Create and save jobs – SBA 504 interim financing– Refinancing is ineligible
NDOF Service Area
38 Eligible Municipalities throughout North Dakota
Policies/Terms
Loan limits– $1,000,000 maximum
Match required– Minimum $1 private investment for each $1 of loan proceeds– Overall Fund goal of $10:$1
Minimum 10 % owner equity Interest Rate
– Negotiable – generally 4.0% to Prime– Fixed or variable
Policies/Terms cont.
Typical Term Lengths– Fixed Assets
• 20 Years
– Equipment and Machinery• 7-10 years
– Inventory• 5 Years
– Working Capital• 2 years
Policies/Terms cont.
Fees– 1% origination
• Unless used in conjunction with SBA504, then 0.5%
– All hard costs Collateral
– Must provide adequate security for the loan– Subordinate debt is possible
About LCCDC History
– Created in 2009 as 501(c)3 Non-Profit– Certified By SBA in December 2010– First Loan Authorization issued April 2012– First Loan Funded September 2012
Board of Directors– 9 Member Board of Directors
• Business• Community• Government• Financial
What does Lewis & Clark CDC do?
SBA 504 Loans• Long-term
• 10 year term – Equipment• 20 year term – Land and Buildings
• Fixed rate• 10yr – 4.29%• 20yr – 4.26%
• Uses• Land Acquisition• Building Acquisition• Construction cost on new construction and renovation• Professional Fees• Leasehold Improvements• Debt Refinancing
About CWND
Organized as a 501 (c)(3) Non-Profit in 1995First staffed in 2000Chartered as a NeighborWorks America
Member in 2000DREAM Fund established in 2001DREAM II Fund established in 2003
About CWND
Board of Directors15 Member Board of Directors
FinancialMortgage Lenders and Bank OfficersReal Estate AgentsHousing AuthoritiesNon-profitsElectric Cooperatives
DREAM Fund
D – Down Payment and Closing CostsR – RehabilitationE – Emergency RepairsA – And Other, Including ConstructionM – Mortgage
DREAM Fund
No Income LimitsLow-Income is a priority
Rates and Terms Adjusted for Affordability1 Month to 40 Years1% to Market Rate
DREAM II Fund
Generally Short-Term Housing Development Loans for:Pre-Development costsConstructionInfrastructureOther Bridge and Gap loans
Outreach/Marketing
Historically marketing has been partner driven Banks Realtors Economic Developers Other partners – USDA, SBA, SBDC
Sponsorships Women in Business Summit
Conference attendance with Booth Space North Dakota/South Dakota Bankers Association Independent Community Bankers of North Dakota North Dakota Association of Realtors North Dakota Association of Counties North Dakota League of Cities North Dakota Housing Finance Agency Statewide Housing Conference
Presentations Bank credit committees Economic Development Groups
Outreach/Marketing
Consumer MarketingWebsitesSocial Media
FacebookTwitter
Video Produced a 3 minute video for presentations, display at
conferences, and PSAsAvailable on all three websites
Marketing Materials
Logo apparelOther logo items
Insulated cups, thumb drives, pens
Traditional marketing materialsBrochuresBusiness cardsNewsletters
Including monthly newsletter to Board Members
Marketing Tools
Marketing PlanDevelopBudgetImplementEvaluate
Customer Relationship ManagementWe use Salesforce
Take Aways
DiversificationOffering a suite of products and services
OutreachLet them know we are here
Marketing PlanBrand AwarenessOpportunities
Take advantage of any opportunity to get yourself, your materials or your logo in front of as many people as possible as often as possible
CONTACT INFORMATION
Brent EkstromExecutive Director
200 1st Avenue NWMandan, ND 58554Ph. 701-667-7624Fax 701-255-7228
Email: [email protected]
LCRDC Website: www.lewisandclarkrdc.orgCWND Website: www.communityworksnd.orgLCCDC Website: www.lewisandclarkcdc.org