mallusiness

Balance Sheet Assets

CapitalLoans

Venture

enue

SurplusCom

Expandingingty Training

Access

Servic

Budgeting

Mic

ImprovementsMinorities

Ga

cationo-Finance

Inv

e Assets

l

Lending

Ventures

Growth

sstomers

Company

preneur

Expandingaining

AssistanceAccess

Budgeting

Grow Fu

Micro Loans

Urb

Fran

Gap FundingNon-ProfitEconomicGrowth

mallusiness

Balance Sheet Assets

CapitalLoans

Lending

Venture

Income

enue

Surplus

Grow

SalesCustomers

Company

Entrepreneur

Expandingtingy

rience

TrainingAssisAccess

G

Micro L

nterpriseoans

Veterans

Gap FunNon-PEconGrow

2016Annual Report

Charles Garabedian, President

Salam Nalia, Chief Executive Officer

Message from the President and the CEOFresno CDFI is proud to receive a $1 Million grant from the James Irvine Foundation. The grant funds will support low-to-moderate income (LMI) entrepreneurs achieve self-sufficiency. Besides lending capital and loan loss reserve, grant provides for opening offices in Bakersfield and Modesto and upgrading the computer systems. This grant comes on the heels of the $250,000 Diverse Community Capital grant from Wells Fargo Bank. The Wells Fargo grant will go a long way towards providing investments and financial training to LMI and minority communities, especially to African Americans.

As a progressive and growth-oriented loan fund, Fresno CDFI depends on the hard work being done by our board and loan committee members. Their support, referrals and supervision are the magic ingredients that have enabled us to grow consistently over several years while keeping our losses to acceptable levels. We look forward to consolidating these relationships in making a greater impact in the communities we serve.

We appreciate the tremendous work being done by each and every member of the Fresno CDFI staff as well as the Grant Writing and Treasury teams of Fresno EOC. They have achieved many successes and will continue to shine in the years ahead.

We are pleased that our efforts of many years focusing on ‘inequities in lending’ is now getting national attention. Opportunity Finance Network is working diligently to address the issue of the undercapitalization of CDFIs led by people of color. This is further exacerbated by most banks continuing to support CDFIs in mega cities rather than areas like the Central Valley.

In these changing times, we recognize the importance of preserving policies and programs that protect consumers, spur capital, and support community economic development. Eliminating the funding for the CDFI Fund and the Consumer Financial Protection Bureau, will have a negative impact on the industry and any dilution of the CRA will be a death knell for all CDFIs and Fresno CDFI. Pandering to the interests of others at the expense of small business entrepreneurs should be resisted by all conscientious people.

“In diversity, there is beauty and strength.”

MAYA ANGELOU

Board MembersCharles Garabedian, President 2012 - present Fresno EOC Board Member, Malaga County Water District

Catherine Robles, Secretary 2013 - present Fresno EOC Board Member, Target Area G

Dorothy Thomas, Treasurer 2014 - present Loan Committee Representative Central Valley Community Bank

Amarpreet Dhaliwal 2013 - present City of San Joaquin—Mayor

Art Tanner 2016 - present Borga Steel

Brian Angus 2010 - present Fresno EOC—Chief Executive Officer

Daniel T. Parra 2017 - present Fresno EOC—Chair

Elliott Balch 2017 - present Central Valley Community Foundation

Esmeralda Soria 2015 - present City of Fresno—Councilmember

Geri Yang Johnson 2016 - present Wells Fargo Bank

Gilbert Lara 2012 - present Loan Committee Representative JP Morgan Chase

J. Christopher Winek, Alternate 2016 - present Loan Committee Representative Farmers and Merchants Bank of Central California

Joe Duran 2016 - present Self-Help Federal Credit Union

Kee Xiong, Alternate 2016 - present Loan Committee Representative Pacific Western Bank

Lee Ann Eager 2014 - present Fresno County Economic Development Corporation

Tim Bakman 2009 - present Fresno EOC—Board Member 14th Senatorial District

Yvette Quiroga 2017 - present Fresno EOC—Board Member County of Fresno Board of Supervisors

Loan Committee

Alan Samaha Merrill Lynch

Christopher Winek Farmers & Merchants Bank

Cornelius Stephens BBVA Compass Bank

Dorothy Thomas Central Valley Community Bank

Gil Lara JP Morgan Chase

Jory Mckune Citibank, NA

Kee Xiong Pacific Western Bank

Kevin Williams Suncrest Bank

Manpreet Gill Bank of America

Marvin Foo Union Bank

Michael Burke Bank of the West

Michael Fanucchi Fresno First Bank

Neelesh Dwivedi State Bank of India

Patrick Durkin Fresno First Bank

Richard Fletcher Beneficial State Bank

Rick Leas Retired Credit Union Executive

Rosa Pereirra Self Help Federal Credit Union

Sevag Jierian Rabobank

Ted Marsella Wells Fargo

Timothy Rodriguez Banc of California

Tom Miller WestAmerica Bank

Tony Simone Bank of the Sierra

“Economic growth is encouraged through

development and support of small businesses.”

FRESNO CDFI BOARD MEMBER

Mission and VisionAt Fresno CDFI we envision an economically prosperous Central California powered by entrepreneurs.

Our mission is to finance small businesses and create jobs in underserved communities.

We are a non-profit loan fund that helps small business owners by offering affordable financing and providing business advisory training.

Fresno CDFI is committed to central California communities.

We invest in small businesses with the greater goal of improving borrowers’ financial standing, revitalizing communities, and spurring economic growth.

Our TeamFresno CDFI’s diverse and multilingual staff is experienced in working with starting and emerging business that need to get to the next level.

MonoTuolumne

Fresno

Tulare

Kern

Inyo

Kings

SanBenito

Monterey

MercedMadera

StanislausSan

Joaquin

Mariposa

15%

71%

Northern Region15 loans / 15% $1,123,000

Central Region70 loans / 71% $3,440,139

Southern Region14 loans / 14% $1,295,700

14%

99Loans

$5,858,839

We provide micro-loan financing up to $50,000 and enterprise loans up to $500,000 for small businesses. All of our loans come with extensive pre- and post-loan business training, education, and assistance from our multi-lingual staff. Our borrowers also have access to our extensive referral network of partners.

Businesses can use our funds for:

• Working Capital

• Machinery and Equipment

• Tenant Improvements

• Gap and Bridge Financing

• Commercial Real Estate

• Start-up Businesses

• California High Speed Rail Relocation Projects

• Energy Efficiency Improvements

• Business Acquisitions

• Franchises

• Letters of Guarantee

• Small Farms

Our many services aim to:

• Improve business relationships with banks

• Build business owners’ credit

• Help businesses create and retain jobs

• Invest in low- to moderate-income businesses and communities

• Assist women, veteran, and minority-owned businesses

• Support businesses in rural communities

Loan ProductsENTERPRISE LOANS >$50,000 to $500,000

• Existing businesses

• In-house underwriting

• SBA 7a & CalCAP Collateral Support

• Loan Committee approvals

MICRO LOANS $5,000 to $50,000

• Startup and existing businesses

• 2 day pre-qualification

• Documentation & terms based on amount & purpose

POWER LOANS Up to $10,000 for energy efficiency retrofits

• 0%, $0 fee loans made possible through partnership with Fresno County EDC & PG&E

• Loan payments are less than money saved!

LETTER OF GUARANTEE Pre-qualification up to $300,000

• Guarantees funding for up to 12 months.

• Contingent on executed contracts, licenses, etc.

InvestorsBBVA Compass

Central Valley Community Bank

Citibank

City of Fresno

City of Modesto

Economic Development Corporation serving Fresno County

Fresno EOC

The James Irvine Foundation

JP Morgan Chase

MA Roberts Foundation

Opportunity Finance Network

Pacific Gas & Electric Company

Pacific Western Bank

Premier Valley Bank

Rabobank

Union Bank

U.S. Department of Agriculture

U.S. Health and Human Services (OCS)

U.S. Economic Development Administration

U.S. Small Business Administration

U.S. Treasury - CDFI Fund

Wells Fargo Bank

Power Loans3 loans / 3%$32,691

Enterprise Loans(>$50K)

22 loans / 22%$3,917,348

Micro Loans($5K to $50K)

74 loans / 75%$1,908,800

Types of LoansWe Funded

GROW FUNDS Business development campaigns with local partners to increase the deployment of targeted or unrestricted capital in underserved communities.

Partners Community Services and Employment Training (CSET)CSU Bakersfield Small Business Development CenterEconomic Development Corporation serving Fresno CountyFresno Area Hispanic Chamber of CommerceFresno Metro Black Chamber of Commerce Fresno Regional Workforce Investment Board & Fresno4Biz.comFresno State Office of Community and Economic DevelopmentFresno State Small Business Development CenterHollister Downtown AssociationKern Black Chamber of CommerceMadera Chamber of CommerceMammoth Lakes Chamber of CommerceMerced County Hispanic Chamber of CommerceModesto Chamber of CommercePacific Gas & Electric CompanySan Benito County Chamber of CommerceService Corps of Retired Executives (SCORE)Small Business AdministrationTulare Kings Hispanic Chamber of CommerceTuolumne County Chamber of CommerceValley Sierra Small Business Development CenterVisalia Chamber of Commerce

Technical AssistanceACCESS TO CAPITAL WORKSHOPSEducating aspiring and existing business owners about the importance and elements of credit and the lending process. These workshops are conducted in English and Spanish.

BUSINESS SERVICESNo-cost business development services and one-on-one coaching (for qualified applicants for the duration of the loan) including:

• Assistance with financial and loan packet preparation.• Assistance with application for business licenses and permits.• Training classes and workshops.• Follow-up assistance during initial stages of your business.• Information and referrals to other agencies and/or lending institutions.

BUSINESS ADVISORY TRAINING INSTITUTE (BATI)A comprehensive 16-week financial educational program to increase the knowledge and acumen of current business owners and aspiring entrepreneurs on budgeting, business financials, credit building, and lending principles.

Access to Capital

26Workshops

559Participants

TOFAS Mediterranean GrillHusband and wife team Tobias and Fatima Teran have been business owners since starting a Computax franchise in Fresno in 1994. They grew the franchise to 7 storefront locations. They have since completely divested from the franchise, focusing on the restaurant business and real estate holdings. In 1997 they started purchasing real estate and have slowly amassed a large residential portfolio including one commercial property. Mrs. Teran is a well trained chef having multiple years of experience in her home country of Brazil.

In 2013 a family owned business turned to Fresno CDFI for assistance in expanding their Mediterranean restaurant located in Madera, California. The business demonstrated to be a very positive operation in which sales had grown tremendously every year. The Terans shared their corporate growth plan, of which included the opening of faster casual uniting with a franchise appeal. Their menu includes a variety of beef, chicken, gyro, lamb and fish plates. In addition, entrée plates can include rice pilaf, hummus, tabouli, grape leaves and other specialty items to accompany any taste bud.

In 2013 Fresno CDFI provided an enterprise loan for the opening of their second restaurant located in Clovis, TOFAS Grill. The loan proceeds were used to perform tenant improvements, purchase of equipment, and working capital. In 2016, the Terans opened a third restaurant at the Campus Point shopping center near Fresno State. This project was self-financed after

successfully selling their tax business operation. Due to a track record of increasing sales for all three operations, the family decided to pursue financing for a fourth location.

In 2016, Fresno CDFI funded their fourth location in Fresno. To date, the Terans operate three TOFAS, two in Fresno and one in Clovis. The Madera location continues to operate as Kebab Grill. The first project financed by Fresno CDFI resulted in the creation of 15 full time jobs in Clovis. The second project recently funded, opening early May 2017 will result in 12 - 16 full time jobs.

“Fresno CDFI knows that a successful

business is more than just numbers on a

balance sheet.”FRESNO CDFI CLIENT

Crated with Love Crated with Love was founded in August, 2014 by Tyler Turk, a Business Entrepreneur student from California State University, Fresno. Tyler Turk and his wife Michelle have created innovative “out of the box” solution to help couples take a moment every month to fall in love again. The subscription box company offers fun, spontaneous, and unique date night items and activities for couples. Each month the box service offers a different theme with step-by-step activities to engage couples in their relationship.

Crated with Love is currently shipping out 800 boxes a month. So far they have shipped nearly 20,000 dates to customers in 6 countries.

Fresno CDFI initially provided them with a $7,000 loan in August 2015 which Turk turned into $150,000 sales. In May 2016, Turk applied for and received another loan for $20,000 to keep up with his rapid growth. This small business venture has grown and now employs 4 full-time employees.

Crated with Love is currently partnering with churches, coffee houses, and restaurants to host date nights.

“Romance is like any other skill: If you don’t

actively pursue it, you’re going to lose it.”

TYLER TURK, CEO CRATED WITH LOVE

INCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31

2016 2015 REVENUES AND SUPPORT

Operational Grant Revenue 455,880         538,840

Microloan Grant Revenue 618,037         636,336

Interest and Fee Income 895,680 728,103

TOTAL REVENUES 1,969,597     1,903,279

EXPENSES

Salaries and Fringe 601,094         542,692

Operational Expenses 392,113 256,701

Allowance for Bad Debt 298,409         217,845

Interest Expense 53,486           43,336

TOTAL EXPENSES 1,345,102     1,060,574

NET SURPLUS (DEFICIT) 624,495 842,70

Demographics of Our Borrowers

66%

Minority 65 loans $3,401, 448

63%

Low to Moderate Income 62 loans $2,826,780

36%

Women36 loans $2,227,459

26%

Startups 26 loans $937,500

21%

Rural21 loans $1,018,680

6%

Veteran6 loans $257,500

African American17 loans / 17%$457,500

Hispanic33 loans / 33%$1,787,148

Asian14 loans / 14%

$1,106,800

Caucasian34 loans / 34%$2,457,391

Other1 loan / 1%

$50,000

Oaxaca Barber ShopIn 2015, Elisa Ibarra, a long time barber decided she would pursue financing to purchase Oaxaca Barber Shop and commercial property from her brother, who at that time was the owner. Oaxaca Barber Shop was established in 1998 and Ibarra began leasing space in 2014.

Elisa had dreams of purchasing an existing business or commercial property with her savings. Her brother, the owner of the barber shop let her know he was ready to retire. This seemed like a perfect opportunity for Elisa to follow her dreams. The square footage on this property is 1,350, which made it difficult for a traditional lender to work on a loan of this size.

Ibarra applied for and received a loan from Fresno CDFI to purchase the building from her brother.

Ibarra supports other fellow community businesses by mentoring them and referring them to Fresno CDFI if they intend to pursue business financing. Ibarra is often recognized as our number one business ambassador.

“Fresno CDFI helped me when a bank couldn’t.”

FRESNO CDFI CLIENT

Hazel’s Christian PreschoolHazel’s Christian Preschool is a progressive year-round preschool and full-service child care facility that cares for toddlers from ages 6 weeks to 12 years. The curriculum, coupled with a custom designed facility, and a low teacher to student ratio, ensures a top notch service for children and their parents. Owners Odoom and Hazel Domson opened Hazel’s Christian Preschool & Childcare Center in 2014.

Owning a business was a new venture for the couple but the operation of a childcare center was familiar. Previous to starting the business, Hazel had worked for 14 years as a preschool teacher and over 6 years as an administrator for a large childcare center in the area. When that center abruptly had to close its doors, she recognized the need for a high quality childcare center in her community.

After developing their business plan, they were able to secure a Micro Loan with Fresno CDFI to start the childcare center. It should be mentioned that all of this occurred as Odoom was on military duty training out of state – no small feat!

Their first childcare center employs 20 teachers and aides with their annual enrollment at 85 children. In 2016 the couple saw an opportunity to open a second center allowing them to expand by 56 students.

By this time they had paid off their original Micro Loan and applied for a second from Fresno CDFI. The second Micro Loan provided the capital needed to obtain licensing, furnish, and hire an additional 15 teacher and aides.

Within short period of time, Hazel’s Christian Preschool & Childcare Center has become a household name in Modesto. They have over 1000 Facebook likes, 5-star reviews on various social media outlets including Yelp, Yellow Pages, Google and they won the 2016 Macaroni’s Kids Best Childcare/School, Day Care Category. We are proud to have partnered with the Domsons and wish them many more successful years ahead.

“Fresno CDFI gives people the opportunity to succeed

by giving them a shot at entrepreneurship.”

FRESNO CDFI BOARD MEMBER

BALANCE SHEET

2016 2015 ASSETS

Total Current Assets 5,149,066  6,091,034

Total Fixed Assets - 1,467

Other Assets

Notes Receivable 11,197,025 8,141,875

Reserve for Bad Debts (555,672) (411,729)

Total Other Assets 10,641,353 7,730,146

TOTAL ASSETS 15,790,419 13,822,647

LIABILITIES AND NET ASSETS

Total Current Liabilities 1,585,636 1,608,555

Long-Term Liabilities-Notes Payable 9,440,824 8,074,628

Total Liabilities 11,026,460 9,683,183

Net Assets 4,763,959 4,139,464

TOTAL LIABILITIES AND NET ASSETS 15,790,419 13,822,647

JobsCreated or Retainedby 2016 Loans

242Retained

238Jobs Created

1920 Mariposa Mall, Suite 111 Fresno, CA 93721

Phone (559) 263-1351 • Fax (559) 263-1094

info@fresnocdfi.com •www.fresnocdfi.com

Like us on Facebook! • facebook.com/FresnoCDFI

Our StaffSalam Nalia Chief Executive Officer

Jeremy Hofer Senior Manager - Operations

Tate Hill Senior Manager - Administration

Ana Medina Business Development Manager

Baldev Birk Technical Assistance Specialist

Fen Westphal Business Data Analyst

Hamid Salahi Accountant

Joanna Rodruiguez Loan Processing Analyst

Joi Eubanks Lead Business Development Officer

Mari Kroigaard Credit Manager

Michael Donato Technical Assistance Analyst

Nelson Her Business Development Officer