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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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
Authorized by the Small Business Administration as a
Certified Development Company, which allows us to
originate and service SBA 504 loans.
Fixed Asset Financing (i.e. Buildings and Equipment)
Long Term Fixed Interest Rate (10 and 20 years)
Subordinated Debt to the Lead Lender
Provide Loan Packaging Services to Wisconsin Lenders
SBA 7(a)
USDA – Rural Development – Business & Industry Loan
Guarantees
WHEDA Loan Guarantees
Revolving Loan Funds
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WBD Offices
Lending Offices
Madison
Waukesha
Racine
Oshkosh
Green Bay
Stevens Point
Eau Claire
Hudson
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Wisconsin Business Development Finance Corporation
30 years of working with our lending
partners to benefit Wisconsin businesses
Funding $2 Billion plus in community
development projects in Wisconsin
For over 2,000 Businesses
Contributing to 64,000 jobs statewide
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
In 30 Yrs - 2043 Loans Funded
575 in OMB defined Rural Counties
30 Yr Average 28.1% Rural
5 Yr Average 26.5% Rural
Lagging Indicator
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
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
Strongest Industry Segments
Manufacturing
Professional
Other Service
Food portion of Accommodation & Food
Weakest Industry Segments
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
For 504, Lenders are the Gatekeeper
- Bring the Projects to WBD
More Lenders Looking for Credit
Enhancements
Lenders Only Bringing Stronger, Well
Established Businesses
– don’t see Weaker Projects
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SBA 7(a) Lending
WBD Assists Community Based Lenders
with Loan Packaging
More Lenders Looking Ways to Deal with
Pressure from Examiners, Often Seeing
Weaker Projects that need shoring up
Debt Restructuring to improve cash flow
Not Seeing
Start-up Businesses
Innovative Businesses
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Life After the Stimulus Package
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
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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