Transcript Economic Development in Rural Wisconsin Small Business and Farm Access to Credit Wisconsin Business Development Finance Corp. A Certified Development Company www.wbd.org.

Economic Development in
Rural Wisconsin
Small Business and Farm
Access to Credit
Wisconsin Business Development Finance Corp.
A Certified Development Company
www.wbd.org
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Wisconsin Business Development
Finance Corporation
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Authorized by the Small Business Administration as a
Certified Development Company, which allows us to
originate and service SBA 504 loans.
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Fixed Asset Financing (i.e. Buildings and Equipment)
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Long Term Fixed Interest Rate (10 and 20 years)
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Subordinated Debt to the Lead Lender
Provide Loan Packaging Services to Wisconsin Lenders
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SBA 7(a)
USDA – Rural Development – Business & Industry Loan
Guarantees
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WHEDA Loan Guarantees
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Revolving Loan Funds
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WBD Offices
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Lending Offices
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Madison
Waukesha
Racine
Oshkosh
Green Bay
Stevens Point
Eau Claire
Hudson
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Wisconsin Business Development Finance Corporation
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30 years of working with our lending
partners to benefit Wisconsin businesses
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Funding $2 Billion plus in community
development projects in Wisconsin
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For over 2,000 Businesses
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Contributing to 64,000 jobs statewide
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Originating 504 projects in 70 of Wisconsin’s 72
counties
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WBD Performance In Rural WI
WBD Loan Activity in Rural WI
Percentage of Rural Loans
40%
35%
30%
25%
Annual %
20%
30 Yr Average
15%
5 Yr Average
10%
5%
0%
2007
2008
2009
2010
2011
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WBD Performance In Rural WI
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In 30 Yrs - 2043 Loans Funded
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575 in OMB defined Rural Counties
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30 Yr Average 28.1% Rural
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5 Yr Average 26.5% Rural
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Lagging Indicator
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Since Recovery began Rural Loans
have been at or below 5 Yr Average
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WBD SBA 504 Portfolio Trend
WBD Portfolio Trend
250
Accomodation & Food
N
u
m 200
b
e
r
150
Manufacturing
Retail Trade
Other Services
o
f
Professional, Scientific &
Technical
100
L
o
a
n
s
Home Care & Social
Assistance
50
Agriculture, Forestry, Fishing
& Hunting
Arts, Entertainment &
Recreation
0
2007
2008
2009
2010
2011
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Comments on Portfolio Trend
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Combined Rural & Metro Portfolio
Stimulus Package in 2009 & 2010
was a benefit
Volume was Up in a Down Economy
Fewer Start-up Businesses
More Purchase of Existing Facilities
Less New Construction
Impact on Rural Business Activity
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Industry Segments
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Strongest Industry Segments
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Manufacturing
Professional
Other Service
Food portion of Accommodation & Food
Weakest Industry Segments
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Retail Trade
Home Care & Social Assistance
Art, Entertainment & Recreation
Agriculture – Dairy – Low milk prices
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Average Credit Score on
Approved 504 Loans
WBD Credit Score History
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Average Credit Score
2.5
2
1.5
1
0.5
0
2004
2005
2006
2007
2008
2009
2010
2011
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Comments on Credit Scores
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For 504, Lenders are the Gatekeeper
- Bring the Projects to WBD
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More Lenders Looking for Credit
Enhancements
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Lenders Only Bringing Stronger, Well
Established Businesses
– don’t see Weaker Projects
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SBA 7(a) Lending
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WBD Assists Community Based Lenders
with Loan Packaging
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More Lenders Looking Ways to Deal with
Pressure from Examiners, Often Seeing
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Weaker Projects that need shoring up
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Debt Restructuring to improve cash flow
Not Seeing
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Start-up Businesses
Innovative Businesses
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Life After the Stimulus Package
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Steady but Lower Volume
Lenders Keeping Stronger Projects
Looking to for Credit Enhancements
on Middle of Road Projects
Void in the System for Start-ups and
Innovative Projects
New SBA 504 Refinance Rules will
help Business Cash Flow
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Restructure Debt
Cash Out Equity in Fixed Assets
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Thank You!
Rich Diemer
V.P. & Economic Development Officer
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