Linda Gilbert Regional Lending Manager

WHO ARE WE?



Experienced commercial lenders, all with many years working for commercial banks



Professionals willing to talk to the potential borrower about a business loan transaction before they ever have to fill out a piece of paper



We are committed to making the process streamlined, efficient, non-bureaucratic



We strive to be timely, creative, honest, & direct in our responses

VSBFA KEY DRIVERS



5 C’s of Credit (character, capacity, capital, conditions, & collateral)



Sufficient cash flow to repay debt



Economic (or Environmental) benefit to the Commonwealth

A VARIETY OF PROGRAMS TO FIT MANY FINANCING NEEDS



The primary mission of the VSBFA is to work in partnership with banks & credit unions to provide loans to businesses in support of Virginia’s economic development efforts.



We fulfill this role by providing credit enhancements to banks in the form of loan participations, cash collateral, loan guaranties, and loan loss insurance programs.



We provide benefit by mitigating bank credit risk and covering the collateral shortfall.



We provide benefit to Virginia’s businesses by addressing a fundamental need for business growth: Access to Capital.

AS A RESULT OF OUR LENDING EXPERTISE, WE ALSO ADMINISTER LOAN PROGRAMS FOR OTHER STATE AGENCIES



Dept. of Social Services – Child Care Financing Program



Dept. of Small Business & Supplier Diversity– P.A.C.E. Capital Access Program



Tobacco Commission – Tobacco Capital Access Program



Dept. of Environmental Quality & Dept. of Conservation & Recreation – Environmental Compliance Assistance Fund (direct loan from VSBFA)

ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND



Direct loan program developed by DEQ & DCR in conjunction with the VSBFA in June of 2000



Codified in the Virginia Code § 10.1-1197



Funded through a one-time commitment from DEQ’s Virginia Environmental Emergency Response Fund



Provides Virginia businesses and Virginia farmers with direct loans for:



Equipment to comply with the federal Clean Air Act



Equipment to implement voluntary pollution prevention measures



Equipment or structures to implement voluntary agricultural best management practices (BMP’s)

ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND



Eligible Borrowers:



Small businesses with 100 or fewer full-time employees and is a small business concern as defined in the federal Small Business Act



Eligible Projects:



Project must be certified by DEQ for air quality or pollution prevention projects, or by DCR for agricultural best management practices



Examples of eligible loan uses:



Paint spray guns



Dry cleaning machines

   

Gas pump emission control systems Printing equipment Truck/bus auxiliary power units Agricultural BMP’s

ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND



Loans may not be used to:



Comply with an enforcement action



Fund under or above ground storage tank replacement/compliance



Finance a start-up business



Refinance equipment already on site



Provide working capital

ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND

Terms



Loan Amount: Up to $100,000, $5,000 minimum



Term: Amortized to match the borrower’s ability to repay the loan and/or to coincide with the useful life of the assets financed. Maximum 10 year maturity/amortization.



Fees: Application fee of $30.00



Interest Rate: 3% fixed for the life of the loan



ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND

Helping Make CREP Even Easier

Farmers seeking to participate in the Farm Service Agency’s (FSA’s) Conservation Reserve Enhancement Program (CREP) are elgible for ECAF loans.

 Farmers participating in CREP may receive an ECAF loan to cover the upfront costs such as: fencing, wells/pump houses/ watering stations, & riparian buffers.

 The ECAF loan can cover the upfront costs of these items preventing the farmer from having to come out of pocket.

 The VSBFA takes a lien on the assets financed and an assignment of the CREP grant.

 Once the assets are in place and the CREP payment is made, the ECAF loan is repaid with a direct payment from FSA to the VSBFA.

ENVIRONMENTAL COMPLIANCE ASSISTANCE FUND

Fund Activity



43 loans funds totaling $2.2 million



$ 2.2 million



$356,000 remaining to be loaned

QUESTIONS?

LINDA GILBERT REGIONAL LENDING MANAGER 540-492-0493 [email protected]

THANK YOU FOR YOUR TIME