PeopleFund 2017 Overview. Gary Lindner, President & CEO

Transcription

1 PeopleFund 2017 Overview Gary Lindner, President & CEO

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3 Who We Are Certified Texas Non-profit 501(c)3 - Established 1994 Certified Community Development Financial Institution (CDFI) Commitment to underserved markets Target - minority, women, veteran owned businesses and businesses in low to moderate income (LMI) census tracts Small Business Administration (SBA) Certified Lender SBA Microloans up to $50,000 SBA 7a Community Advantage(CA) Loans - up to $250,000 First CA Lender in Texas, top 10 Nationally SBA 504 Loans up to $5 million CDFI Analysis and Rating System known (AERIS) *** Policy Plus A+

4 Our Mission, Vision, & Core Values Our Mission PeopleFund creates economic opportunity and financial stability for underserved people by providing access to capital, education and resources to build healthy small businesses. Our Vision To become the premier non-profit business lender in Texas. Core Values Integrity First Service Before Self Excellence in All We Do

5 PeopleFund Strengths 91% loans to our target market, 54% to startups Lower interest rates, lower fees, faster service & better post loan client support than other CDFI s Selected by Tory Burch Foundation as sole Texas CDFI partner to support Texas women entrepreneurs Top nonprofit lender to veterans. Endorsed by Texas Veterans Commission. Loan capital from State of Texas SBA Veteran Small Business Champion of the Year Diversity in action. Board (9 of 13 minorities). Bilingual all sites. 82% of staff female Corporate Diversity Award from Texas Diversity Council Leader of public policy at national, state, & local level. CEO - AEO board Chair GACC Executive Leadership Award ABJ Non-profit CEO of the Year

6 Significant Events 2012 Merger & with Dallas Plan Fund (non-profit microlender) 2012 Began statewide expansion plan 2013 Received and successfully deployed $15 million New Markets Tax Credit (NMTC) Allocation 2015 Statutory merger with Southern Dallas Development Corporation (SDDC) (non-profit CDFI) 2016 Assumed management of Southern Dallas Development Fund (SDDF). Converted $3.8 million shares to equity 2016 #1 Community Advantage Lender for SBA DFW District 2016 Named most outstanding Community Lender by the Tory Burch Foundation $ 30 million NMTC allocation

7 PeopleFund Portfolio Activity 2016 Year End Total Portfolio by Loan Group $ Principal # Loans PeopleFund $ 6,364, SBA Microloan Fund $ 894, SBA Community Advantage $ 6,276, Total $ 13,535,

8 Minorities (59%)

9 Women (53%)

10 Veterans (28%)

11 Nonprofits (3%)

12 Portfolio Break By Industry NAICS Industry # Loans % of Total $ Principal % of Total Accommodation & Food Services % $1,759, % Administrative & Support Services % $315, % Agriculture % $116, % Art, Entertainment, & Recreation % $977, % Construction % $1,101, % Education % $726, % Finance & Insurance % $176, % Healthcare & Social Services % $2,015, % Manufacturing % $706, % Other Services % $406, % Professional & Technical Services % $244, % Real Estate % $316, % Religious Organization % $191, % Retail % $1,684, % Service % $750, % Technology & Information % $217, % Transportation & Warehousing % $1,042, % Wholesale % $785, % Total % $13,535, %

13 Client Credit Scores % % Above % 85% of PeopleFund clients have a credit score below 750, the desirable score for most banks % % Above

14 What Makes PeopleFund & CDFI s Different Non-Profit Business Lender CDFI Served the underserved No Application Fee No Established Minimum FICO Score Low Loan Equity Contribution Flexible Loan Terms and No Pre-Payment Penalty Post Loan Business Training and Support Variety of Loan Products: PeopleFund Loans, SBA Microloan, SBA Community Advantage Loans, Lines of Credit amounts vary $350,000 maximum

15 Loan Program Core Mission 20+ Applications a week Underwriting Superb risk management team Every loan receives individual review Balance business need vs. risk to PeopleFund Loan portfolio review Weekly review lending, underwriting, finance Action on any delinquent loans (2.7% -2016) Quarterly LLR adjustment by CF0 and Underwriting Average less than 4% net losses annually

16 Education & Training Tailored to individual client needs Credit counseling, business plan, financials Loan readiness and application Business training programs 230 Volunteer Mentors paired based on need 15,000 TA hours in 2016 Results: Net charge offs <4%(2016) Delinquency rate 2.7% (2016)

17 Strategic Partners Banks Investors SBA Regional Offices Dallas Lubbock San Antonio Houston SBDCs 66 Statewide State of Texas Texas Veteran Commission Texas Economic Development Bank Grant and Donor Sources Local, State, and National Organizations

18 Development & Communications Grants provide an essential source of revenue so we can offer clients low interest rates, fees, and top quality post loan support. ~ $1.5 million plus annually Marketing and Communications Essential to clients, funders, and donors to create positive and compelling public image. Extensive social media for news and events. Events: East Night, Innovation Week & more Social Media Twitter followers: 3,700+ Facebook: 2,320+ Newsletter: 17,000+ subscribed Website page views: 37,000+/ month

19 Sources of Grant Capital Over $25,000

20 Sources of Loan Capital Source Banks $12,267,345 Investors $1,705,000 SBA $1,082,348 Department of Treasury $1,200,000 State of Texas $1,550,000 Total $17,804,693

21 Sources of Loan Capital Banks - $12.3 million

22 Sources of Loan Capital Investors - $1.7 million

23 Sources of Loan Capital Public Funds-$3.8 million

24 PeopleFund 2016 Financials ASSETS Cash $ 1,146,295 Restricted Cash 1,563,352 Short Term Investments 6,246,923 Receivables and Other Assets 4,042,163 Fixed Assets 2,973,003 Loans Receivable Net of Allowance 14,638,043 Total Assets $ 30,609,779 LIABILITIES AND NET ASSETS Current Liabilities $ 213,437 Long Term Liabilities 17,827,352 Net Assets 12,568,990 Total Liabilities and Net Assets $ 30,609,779 STATEMENT OF ACTIVITIES REVENUES Program Income $ 1,076,944 Gain on Acquisition 1,161,515 Other Operating Income 353,108 Investment Income, net 206,036 Contributed Income 3,720,222 Total Revenues $ 6,517,825 EXPENSES Program Expense $ 2,334,582 Fundraising Expense 170,823 General and Administrative Expense 341,646 Total Expenses $ 2,847,051 CHANGE IN NET ASSETS $ 3,670,774

25 State Expansion Plan Timeline Year Dollars Lent Number of Loans Made Jobs Created/ Retained Office Locations 2017 $8,630, Austin, Dallas, Houston, Fort Worth, Rio Grande Valley, San Antonio, El Paso 2018 $9,190, Laredo P r 2019 $11,410, San Angelo 2020 $13,122, Corpus Christi 2021 $15,090, Lubbock o j e c t e d Total $57,442, ,190 4 New Satellite Offices 11 Total Offices

26 PeopleFund Office Locations

27 PeopleFund Team Our greatest strength

28 PeopleFund Senior Staff Impeccable professional credentials and passionate commitment to success of Texas small business owners Dream Team Pictured from left to right: Rocio Vallejo, Director of Lending, Education & Training; Julia Dunn, CFO; Gary Lindner, President & CEO; Shay Erickson, Director of Operations; Amber Cooney, Director of Advancement & Education; Laura Shock, Director of Underwriting & Risk Management.

29 PeopleFund Board PeopleFund Board of Directors - Officers Pictured from left to right: Irvin Ashford Jr. Comerica Bank, Kathy Burrell Wells Fargo, Anna Sanchez Wells Fargo, Ben De Leon De Leon & Washburn