Transcript Marketing Revolving Loan Funds - Iowa Association of Regional

MARKETING REVOLVING
LOAN FUNDS
IARC Revolving Loan Funds
Conference
April 10, 2007
Presentation By:
Jerry Schroeder
Economic Development
Director
ECONOMIC DEVELOPMENT
 ECIA was designated in 1978
as a Regional Economic
Development District
 ECIA Business Growth, Inc.
was established in 1983
 Non-Profit Certified
Development Corporation
(CDC)
• Purpose to promote
the expansion of area
businesses and the
creation of new jobs
ECONOMIC DEVELOPMENT
Continued
 Board of Directors
governs CDC
 ECIA provides staff
and services
 Since 1983
$52,064,733 in loans
approved
 4,344 jobs created or
retained
ECONOMIC DEVELOPMENT
Continued
 ECIA Business Growth, Inc.
operates business loan
programs
 SBA 504 Program
 EDA-RLF and Regional
IRP RLF
 Jackson County
Revolving Loan Fund
 Dubuque County (IRP)
MARKETING RLFS
 IT STARTS WITH YOUR RLF PLAN
 I. Program Elements of the Plan
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Goals And Objectives
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Area's Financing Problems
Targeting Criteria
Standards for the RLF Portfolio
Financing Policies
Related activities (ex: Technical Assistance)
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MARKETING RLFS
 IT STARTS WITH YOUR RLF PLAN
 II. Administrative Elements of the Plan
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Loan Administration Board
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Loan Selection and Approval Process
Loan Servicing
Sources to Cover Administrative Costs
Recapitalization Strategy
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MARKETING RLFS
 IT STARTS WITH YOUR RLF PLAN
 III. Other Requirements
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Non-Relocation
Conflicts of Interest
Civil Rights
Environmental Considerations
Amendments
MARKETING
“Determining the right target audience is
probably the most important part of
your marketing efforts, because it
doesn’t matter what you’re saying if
you’re not saying it to the right
people.”
MARKETING RLFS
 STEP 2: THE MARKETING PLAN
▪ Market Review
▪ Competitive Review
▪ Product & Business Review
▪ Strengths, Weaknesses,
Opportunities, Threats
MARKETING RLFS
 STEP 2: THE MARKETING PLAN cont.
▪ Goals and Objectives
▪ Strategies
▪ Action Plan and
Implementation
▪ Evaluation
MARKETING RLFS
 STEP 3: IMPLEMENTATION and
TIMELINE
January
• Join Chambers of Commerce
• 2 local lender visits
• Press Release on available funds
• Develop RLF Summary Sheet
February
• 2 local lender visits
• Write newspaper article
• Develop E.D. brochure
MARKETING RLFS
 EDA REVOLVING LOAN FUND
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Intent is to provide gap financing for fixed asset expansion
projects
Goal is one FTE job created retained for each $100,000
provided within two years
Funds targeted to manufacturing or service companies
Leverage two private dollars to one RLF $
Size $50,000 to $200,000
Working capital is eligible
Term is flexible, typically seven years
Interest rate 4%-8%
MARKETING RLFS
 DUBUQUE COUNTY REVOLVING LOAN PROGRAM
 Project must be outside City of Dubuque
 Loans to manufacturers rather than retail or service
 Loans to E.D. Groups for Spec. Buildings, land
 Fixed asset loans (land, building, and equipment)
 Interest rate 4-8%
 One job for each $15,000 provided within two years of
loan closing
MARKETING RLFS
 DUBUQUE COUNTY
REVOLVINIG LOAN
PROGRAM CONTINUED
 Starting wage of each job
must be at 75% of the
County average
 Max loan of $250,000
 Personal guarantees
required
 Loans must be secured
with mortgages or liens
MARKETING RLFS
 Jackson County Revolving Loan Fund
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Financing of fixed assets preferred (equipment)
Fixed asset projects (land, building, equipment)
Goal is one FTE job created or retained for each $50,000
Funds targeted to manufacturing or service companies
Limited strictly to projects within Jackson County
Finance working capital only in unusual circumstances
Term is 3-15 years
Interest rate 4%-8%
Personal guarantee usually required
MARKETING RLFS
 ECIA Regional Revolving Loan Fund
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Projects anywhere in the 5-County ECIA region, but
must be outside Cities of Clinton, Dubuque
Targets creation/retention of manufacturing jobs
Goal to create/retain one job for each $100,000 lent
Term is flexible, typically seven years
Interest rate 4.5-8%
Personal guarantees required
MARKETING RLFS
 STEP 3: IMPLEMENTATION
TIMELINE cont.
March
• Mailing to Accountants
• Press release on approved loans
April
• 2 local lender visits
• Conduct Economic Development
Summit with partners
MARKETING RLFS
 STEP 3: IMPLEMENTATION
TIMELINE cont.
November
• Send out postcards to manufacturers
• Press release on approved loans
• Local lender visits
MARKETING RLFS
MARKETING RLFS
 STEP 3: IMPLEMENTATION
TIMELINE cont.
December
• Christmas Cards to borrowers
• Local lender visits
• Newspaper add on RLF funds
• Evaluation Cards to borrowers
MARKETING RLFS
MARKETING RLFS
MARKETING RLFS
 OTHER SERVICES
 ECIA Staff assists with grant
writing and servicing
expertise for such programs
as:
 CEBA
Since 1983, ECIA has assisted in obtaining
 CDBG EDSA
$15,363,000 in CEBA and CDBG
EDSA/PFSA Grants with over $343,000,000
 CDBG PFSA
total investment and creating over 4,900 jobs
 RISE
within the five county region.
 TIF
 EDA Public Works
SUCCESS STORIES
SUCCESS STORIES
SUCCESS STORIES
STAMPEDE PRODUCTS, Camanche, Iowa
3 RLF equipment loans from ECIA Business Growth
Sales have increased seven-fold since 1995
Employment has grown from 20 to 84 employees
Product numbers have increased from 480 to 12,500
Can produce a bug shield every 9 seconds
SUCCESS STORIES
SUCCESS STORIES
SUCCESS STORIES
SUCCESS STORIES
SUCCESS STORIES
SUCCESS STORIES
“The RLF loans from E.C.I.A. Business
Growth, Inc. have allowed us to purchase
equipment and greatly expand our
product offerings. The funds are
responsible for the majority of the growth
in our sales and employment.”
Loyal Tullius, President
Stampede Products
VISIT EAST CENTRAL
INTERGOVERNMENTAL
ASSOCIATION AT THE WORLD WIDE
WEB ADDRESS BELOW
WWW.ECIA.ORG
www.prosperityeasterniowa.org
Phone 563-556-4166
CONTACT INFORMATION
Jerry Schroeder
[email protected]
E.C.IA. Business Growth, Inc.
3999 Pennsylvania Avenue
Suite 200
Dubuque, Iowa 52002
Phone 563-556-4166