A Survey of SME Finance and the Emerging Alternatives for Access to Capital

Size: px
Start display at page:

Download "A Survey of SME Finance and the Emerging Alternatives for Access to Capital"

Transcription

1 A Survey of SME Finance and the Emerging Alternatives for Access to Capital Jim Faith Trade and Export Finance Online Global California December 3, TEFO. All Rights Reserved

2 Agenda Section 1: An SME Snapshot View Section 2: Current Bank Lending Environment Section 3: Emerging Alternatives for SME Access to Capital Section 4: Alternative Finance Outlook for 2015

3 Section 1: Snapshot SME Working Definition and Profile Less than 500 employees Represent 99% of all American companies Employ over 50 percent of private sector employees (about 120 million people) Generate 65 percent of net new private sector jobs Represent over half of U.S. non-farm GDP Vast majority are sole proprietorships Represent 98% of all U.S. exporters and 34% of U.S. export revenue

4 Section 1: Snapshot US Small Businesses by Number of Employees Source: US Census Bureau, 2013

5 Section 1: Snapshot Top Five Exporting States by Number and Value All Exporters Rank State Number of Exporters Exports ($Millions) US 302,051 1,365,738 1 TX 40, ,491 2 CA 75, ,045 3 NY 41,028 86,523 4 LA 4,000 63,339 5 FL 61,848 61,344 SME Exporters Number of Exporters Exports ($Millions) 295, ,502 37,921 85,527 71,921 66,693 38,675 51,640 3,378 22,028 58,976 42,051 US Census Bureau 2013 Preliminary Report

6 Section 1: Snapshot Top Five Export Destinations US Exports Rank Country Value ($ Million) 1 Canada Mexico China Country CA Exports Value ($ Million) Mexico 23.9 Canada 18.9 China Japan 65.2 Japan Germany 47.4 South Korea 8.4 US Census Bureau 2013 Preliminary Report

7 Section 1: Snapshot Top SME Exporters by Company Size 140, , ,000 80,000 60,000 40,000 20, K 1-19 Employees Top Exporters by Company Size 33K 17K 14K > 500 4K 7K Source: US Census Bureau, 2013

8 Section 1: Snapshot Exporters are Better Economic Performers Exporters consistently out-perform non-exporters in: Higher Sales Higher Employment Pay higher wages Are more productive in terms of value added per worker Use higher levels of capital per worker Have higher skill intensities Nearly 40% of exporters also import and 80% of importers export. Source: US International Trade Commission Report (2011)

9 Section 2: Environment Current Bank Lending Environment Post-recession Cyclical and Structural Effects Regulatory Oversight: Dodd-Frank and Basel III The Credit Gap and Emergence of Online Alternative Funding

10 Section 2: Environment Greater Perceived Risk Means Tighter Lending SME sales haven t returned to pre-recession levels, which in turn, means less demand for loan capital. Traditional collateral, primarily real estate, lost value during the crisis making some borrowers less creditworthy. Banks have remained more risk averse in the recovery while focused on integrating new regulatory oversight in their day-to-day operations. The resulting tighter lending criteria includes: Greater focus on borrower s personal profile, credit scores, income and assets Higher collateral requirements Increasing equity requirements for new loans Preference for liquid collateral, e.g. personal savings, CD s, or stock.

11 Section 2: Environment Banking Industry Consolidation The Banking industry has been in a state of perpetual consolidation since the mid-1980 s. Community Banks, the second leading source of SME bank loans, are being absorbed by larger banks. There are less than 7,000 today, down from over 14,000 in Smaller banks have traditionally relied on relationship banking which includes social context like the borrower s character and local community history in lending decisions. Relationship banking is expensive and don t translate well to the dataoriented criteria and automation used by larger banks.

12 Section 2: Environment Higher Transactional Costs Lenders face greater risk because SME s are inherently more sensitive to economic volatility, have higher failure rates, and fewer assets to collateralize. Publically available information on SME business and financial performance is fragmented and costly to obtain. The fragmented market makes it difficult to develop general credit standards and to securitize and sell small business loans in the secondary market. This state of operational and information disconnect has yet to be resolved and contributes to the higher transaction costs associated with small business lending. Consequently, transaction costs to process a $100,000 loan are comparable to a $1 million loan, but with less profit for lenders.

13 Section 2: Environment High Search Costs The current environment includes high search costs in which it s difficult for qualified borrowers to find willing lenders, and lenders to find creditworthy borrowers. A Federal Reserve study states SMEs can spend up to 25 hours on paperwork for bank loans, and often apply to multiple banks. Even successful applicants can wait several weeks before the funds are available.

14 Section 2: Environment Regulatory Oversight Bank management has been focused on the implementation of Dodd- Frank reforms and Basel III requirements in their processing and dayto-day operations. This regulatory overhang has been an ongoing issue during the recovery, has contributed to the lack of available funds for lending and a case can be made that there has been a disproportionately negative effect on SME lending in particular.

15 Section 2: Environment Stalemate and the SME Credit Gap In summary, Banks say there s a lack of demand and they re not finding qualified borrowers. Small business owners say that, despite being creditworthy, banks remain unwilling to lend to them Transaction costs to process a $100,000 loan are comparable to a $1 million loan, but with less profit to the lender; and yet these smaller loan amounts are generally needed most by startups and SMEs. The unstoppable force (small business need for capital) has met the immovable object (bank lending) resulting in the creation of an SME credit gap. And that gap is being filled by technology solutions and the emergence of online alternative finance.

16 Section 3: Alternative Finance Types of Alternative Finance Non-bank Direct Lenders Marketplace Lenders P2P Lending and Crowdfunding Supply Chain Finance Accounts Receivable Marketplace Merchant Cash Advance Equipment Leasing Corporate Venture Capital Angel Investment Venture Capital Public and Private Equity

17 Section 3: Alternative Finance Non-bank Balance Sheet Lenders Balance Sheet lenders make loans and keep them on their own balance sheet instead of packaging and selling off as securities. If the borrower defaults, balance sheet lenders take the borrowers' assets to cover the unpaid debt. Typical terms are less than 9 months and the proceeds are used for working capital. Repayment is made by a fixed amount or percent of sales deducted daily from the borrower s bank account over a period of months. Interest rates can range from 30% to 120% on an average loan size of $40,000. Preliminary market data: $5 billion in loans since 2007 Biz2Credit OnDeck Can Capital

18 Section 3: Alternative Finance Marketplace Lending Online marketplace lending allows borrowers to comparison shop for a range of loan products from a variety of lenders. Lenders can include commercial, community and regional banks and the SBA as well as other alternative lenders. Mitigates the high search costs for borrowers (~25 hours). Revenue generated from fees paid by the borrower if they get funded. Or the loan package is sold to a lender. Interest rates and loan terms are independent of the platform and determined by the lender. Boefly Fundera Lendio

19 Section 3: Alternative Finance P2P Lending and Crowdfunding Peer-to-peer/Person-to-Person and Crowdfunding platforms enable individuals, businesses, institutional investors and investment banks to lend to consumers and businesses for specific projects. Platform revenue comes from origination fees deducted from the loans disbursed to borrowers and servicing fees deducted from principal and interest payments paid to the lender. Value proposition: Lower interest rates for borrowers; attractive rates of return for investors; and a simple, web-based platform with lower operating costs than banks. Platform provides investors with the ability to distribute risk among multiple borrowers. Interest rates can range from 8% to 25% for loans up to $250,000 over three years. Preliminary market data: $4 billion in loans to date Lending Club Prosper.com Funding Circle

20 Section 4: Outlook for 2015 Outlook for 2015 Bank lending to SMEs has improved, but has not and likely will not return to pre-crisis levels. In June 2013, bank portfolio loan balances of $1 million or less was $288 billion down $47 billion from June Online alternative finance is currently generating about $10 billion in outstanding loan capital and these alternatives will continue strong growth in The outstanding portfolio balance of online alternative lenders is doubling every year. By contrast, outstanding loan capital held by the banking sector is declining an average of 3% annually.

21 Section 4: Outlook for 2015 Some Perspective on Alternative Finance Total SME Debt Capital Outstanding as of 2013 ($ Billions) 700 Bank Loans 175 Business Credit Card 140 Equipment Leasing SBA Factoring MCA Online Alternatives Source: Mills, Karen and Brayden McCarthy. State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game. Harvard Business School. July 2014.

22 Section 4: Outlook for 2015 SME Exporters There are reasons for optimism a 2013 NSBA/SBEA survey shows that 60% of non-exporters are interested in exporting and 52% of current exporters report increased export sales since A 2012 Boston Consulting Group report forecasts that by 2020, declining energy costs and increasingly competitive wages will give America as large as a 25 percent export cost advantage over major exporting competitors like Japan and Germany. The BCG report estimates that the US will experience a manufacturing renaissance and re-shoring starting in 2015, and could add 2-3 million jobs and $100 billion in annual GDP.

23 Section 4: Outlook for 2015 Online Marketplaces Strong growth will continue in Currently Online platform providers generally use proprietary technologies to evaluate risk and creditworthiness. There will be increasing efforts in: Partnerships with third party agencies for data validation. Development of securitization and secondary market due to institutional demand. There are credible estimates for a potential market size of $870 Billion. This figure comes from a comparison to banks, credit cards companies and other lending institutions that generate over $870B/year in fees and interest over $3.2T in lending activity. Specialized segments will continue to grow in many areas of business and consumer lending. Segments like real estate, mortgage appraisal, education and healthcare etc. will continue to evolve.

24 Section 4: Outlook for 2015 Marketplace Investors Institutional debt and equity investors will continue to seek the relatively high rates of return. Traditional bank loans yield 5% to 7%, while many platforms are generating yields ranging from 30% to 120% of the loan value. These higher yields are particularly attractive in the current, and historic, environment of the Federal Reserve s Quantitative Easing that has kept yields low.

25 Section 4: Outlook for 2015 SME Banking Bank lending will likely never return to the pre-2008 environment. However banks currently own the asset marketplace lenders want the most - millions of SME customers. The Bank and Credit Card industry response to online alternatives will be interesting to watch. Some are already participating by: Using their capital to fund loans on marketplace platforms Taking a position in the platforms and offering as a value-added service. Assisting in the development of secondary market for trading and liquidity. A 2013 KPMG banking survey reports that banks have generally accounted for the new regulatory oversight and are now placing a renewed emphasis on a customer-centric business model and improvements to customer s technology experience, which in turn, will drive major investments over the next few years.

26 Section 4: Outlook for 2015 Big Data There will continue to be strong growth in the use of Big Data and development of scoring algorithms which integrate social data from, for example, blogs, product and business reviews and tweets. Online platforms generally recognize that integrating new sources of data is their competitive advantage. The key predictive goal is to establish a correlation with repayment. The more predictive the loan pool, the stronger the underwriting. A marketplace lender uses its own data in a feedback loop that increases the accuracy of its model. Loan performance data feeds back into the model, further increasing the accuracy. As the accuracy increases, the lender can offer lower rates to borrowers. As rates decrease, more borrowers come to the platform, driving more data into the model.

27 Section 4: Outlook for 2015 Regulatory Oversight Marketplace lenders fall between the cracks for federal regulators because they re not banking entities. Currently no single federal entity has broad authority to regulate the emerging industry. The majority of oversight happens at the state level, with a patchwork of regulations within state lines. The P2P platforms are a hybrid of lending (the domain of regulators at the state and federal level) and registered securities (the domain of the SEC). A key innovation of P2P lending is that lenders on the platform are not lending money to borrowers in the legal or regulatory sense; rather the lenders are investors in securities issued by the lending platforms linked directly to specific loans originated by an underlying bank. These and other regulatory issues will be developed in 2015.

28 Section 4: Outlook for 2015 Regulatory Oversight Key regulatory and policy issues to resolve: Define the appropriate level of regulation? Transparency and Disclosure between all parties in a transaction. Standardized Oversight and Monitoring by Federal and State regulators. Borrower financial awareness, literacy and education.

29 Thank You Jim Faith Trade and Export Finance Online TEFO. All Rights Reserved

Financial. Management FOR A SMALL BUSINESS

Financial. Management FOR A SMALL BUSINESS Financial Management FOR A SMALL BUSINESS 1 Agenda Welcome, Pre-Test, Agenda, and Learning Objectives Benefits of Financial Management Budgeting Bookkeeping Financial Statements Business Financing Key

More information

Financial. Management FOR A SMALL BUSINESS

Financial. Management FOR A SMALL BUSINESS Financial Management FOR A SMALL BUSINESS Welcome 1. Agenda 2. Ground Rules 3. Introductions FINANCIAL MANAGEMENT 2 Objectives Explain the concept of financial management and its importance to a small

More information

The Future of Small Business Lending: CREDIT ACCESS DURING THE RECOVERY AND HOW TECHNOLOGY IS CHANGING THE GAME

The Future of Small Business Lending: CREDIT ACCESS DURING THE RECOVERY AND HOW TECHNOLOGY IS CHANGING THE GAME The Future of Small Business Lending: CREDIT ACCESS DURING THE RECOVERY AND HOW TECHNOLOGY IS CHANGING THE GAME LendIt USA Karen Gordon Mills Senior Fellow, Harvard Business School & Harvard Kennedy School

More information

GE Capital, Corporate Finance

GE Capital, Corporate Finance GE Capital, Corporate Finance Tom Quindlen Vertical Research Partners Industrial Conference September 9, 2013 Caution Concerning Forward-Looking Statements: This document contains forward-looking statements

More information

State of Small Business Lending: US and UK

State of Small Business Lending: US and UK State of Small Business Lending: US and UK Karen Gordon Mills Senior Fellow, Harvard Business School & Harvard Kennedy School Former Administrator of the U.S. Small Business Administration and Member of

More information

STATE OF SMALL BUSINESS LENDING:

STATE OF SMALL BUSINESS LENDING: AS OF JULY 2014 STATE OF SMALL BUSINESS LENDING: CREDIT ACCESS DURING THE RECOVERY AND HOW TECHNOLOGY MAY CHANGE THE GAME Karen Gordon Mills Senior Fellow, Harvard Business School and Harvard Kennedy School

More information

SBA Export Loan Programs

SBA Export Loan Programs SBA Export Loan Programs Pellson Lau, Regional Manager Export Solutions Group, Office of International Trade U.S. Small Business Administration 444 S. Flower St., 37 th Fl Los Angeles, CA 90071 Tel: 213.894.8267;

More information

Funding Your Business

Funding Your Business Page 12 County of Bucks Community Services Division Lynn T. Bush, Executive Director and County Chief Clerk Community and Business Development Department Vitor A. Vicente, Director Neshaminy Manor Center

More information

OLR RESEARCH REPORT ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS. By: Michelle Kirby, Associate Analyst

OLR RESEARCH REPORT ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS. By: Michelle Kirby, Associate Analyst OLR RESEARCH REPORT February 19, 2013 2013-R-0054 ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS By: Michelle Kirby, Associate Analyst You asked for an analysis of state small business loan guarantee

More information

SME Banking-Africa. A Unique Opportunity for the Continent

SME Banking-Africa. A Unique Opportunity for the Continent SME Banking-Africa A Unique Opportunity for the Continent Key Messages More to be done The opportunity Challenges in SME financing Profitable segment A proposed solution 2 SMEs in Africa- The Missing Middle

More information

How Bankers Think. Build a sound financial base to support your company for future growth

How Bankers Think. Build a sound financial base to support your company for future growth How Bankers Think Build a sound financial base to support your company for future growth Presented by: Lisa Chapman Business Planning, Social Media Marketing & SEO 615-477-8412 Questions to Consider First

More information

Public Policy and Innovation: Partnering with Capital Markets through Securitization. Antonio Baldaque da Silva November 2007

Public Policy and Innovation: Partnering with Capital Markets through Securitization. Antonio Baldaque da Silva November 2007 Public Policy and Innovation: Partnering with Capital Markets through Securitization Antonio Baldaque da Silva November 2007 Agenda 1. Motivation: Innovation and Public Policy 2. Traditional tools 3. Alternatives:

More information

SBA 504 Non Bank Business Model. Presented by Sok Cordell

SBA 504 Non Bank Business Model. Presented by Sok Cordell SBA 504 Non Bank Business Model Presented by Sok Cordell CH Capital Partners LLC (SBA Non Bank Lending Program) The information contained in this presentation has been obtained from sources believed to

More information

How to Finance a Start-Up Business

How to Finance a Start-Up Business How to Finance a Start-Up Business What are the steps and tools needed to finance your new business? How to Finance a Start-up Businessby Illinois worknet is licensed under a Creative Commons Attribution-Non-Commercial

More information

SMALL BUSINESS DEVELOPMENT CENTER RM. 032

SMALL BUSINESS DEVELOPMENT CENTER RM. 032 SMALL BUSINESS DEVELOPMENT CENTER RM. 032 FINANCING THROUGH COMMERCIAL BANKS Revised January, 2013 Adapted from: National Federation of Independent Business report Steps to Small Business Financing Jeffrey

More information

COMMENTARY. Rapid Growth in Online Lending Prompts Information Request from U.S. Treasury. Background

COMMENTARY. Rapid Growth in Online Lending Prompts Information Request from U.S. Treasury. Background JULY 2015 COMMENTARY Rapid Growth in Online Lending Prompts Information Request from U.S. Treasury The U.S. Treasury Department (the Treasury ) has issued a Request for Information ( RFI ) on online marketplace

More information

5 Interesting Facts about the Peer to Peer (P2P) Market

5 Interesting Facts about the Peer to Peer (P2P) Market 5 Interesting Facts about the Peer to Peer (P2P) Market 1 P2P is not crowdfunding PEER TO PEER LENDING CROWDFUNDING The practice of unrelated individuals or companies lending money directly to one another

More information

SCORE. Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW

SCORE. Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW SCORE Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW One key to a successful business start-up and expansion is your ability to obtain and secure appropriate financing.

More information

Lecture 4: The Aftermath of the Crisis

Lecture 4: The Aftermath of the Crisis Lecture 4: The Aftermath of the Crisis 2 The Fed s Efforts to Restore Financial Stability A financial panic in fall 2008 threatened the stability of the global financial system. In its lender-of-last-resort

More information

www.houstontx.gov/obo www.houstontx.gov/hbsc 832-393-0954

www.houstontx.gov/obo www.houstontx.gov/hbsc 832-393-0954 HOUSTON BUSINESS SOLUTIONS CENTER 611 Walker St., Lobby Level Houston, Texas 77002 www.houstontx.gov/obo www.houstontx.gov/hbsc 832-393-0954 TABLE OF CONTENTS TABLE OF CONTENTS WHAT IS AN ALTERNATIVE LENDER

More information

Non-traded financial contracts

Non-traded financial contracts 11-1 Introduction Financial contracts are made between lenders and borrowers Non-traded financial contracts are tailor-made to fit the characteristics of the borrower In business financing, the differences

More information

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property REAL ESTATE BASICS Affordability Analysis An analysis of a buyer s ability to afford the purchase of a home, reviews income, liabilities, and available funds, and considers the type of mortgage a buyer

More information

Finance for Business Growth

Finance for Business Growth Finance for Business Growth A Presentation by Clive Lewis, Head of Enterprise, Institute of Chartered Accountants in England & Wales (ICAEW) Finance for Growth Businesses Presentation will cover: Do you

More information

1 Regional Bank Regional banks specialize in consumer and commercial products within one region of a country, such as a state or within a group of states. A regional bank is smaller than a bank that operates

More information

Development of the Corporate Credit Information Database and Credit Guarantee System

Development of the Corporate Credit Information Database and Credit Guarantee System Development of the Corporate Credit Information Database and Credit Guarantee System Hachinohe University Research Institute, Japan; University of Malaya, Malaysia; De La Salle University, Philippines;

More information

GUIDE TO ACQUIRING STARTUP FINANCING

GUIDE TO ACQUIRING STARTUP FINANCING GUIDE TO ACQUIRING STARTUP FINANCING 2015 American Institute of CPAs. All rights reserved. 15608-312 To make your business #CPAPOWERED, call today and let s get started. Contact information Address Phone

More information

GUIDE TO ACQUIRING STARTUP FINANCING. To make your business #CPAPOWERED, call today and let s get started.

GUIDE TO ACQUIRING STARTUP FINANCING. To make your business #CPAPOWERED, call today and let s get started. GUIDE TO ACQUIRING STARTUP FINANCING To make your business #CPAPOWERED, call today and let s get started. It s no secret that you will need capital money to launch your new business. In fact, many entrepreneurs

More information

Evaluating the HECM product

Evaluating the HECM product Evaluating the HECM product March 26, 2015 Presented by Garrett M. Kolb gkolb@rmsnav.com Senior Managing Director Reverse Mortgage Solutions, Inc. For Mortgage Professionals Only These materials are designed

More information

Emerging Trends in P2P Lending and Merchant Cash Advance

Emerging Trends in P2P Lending and Merchant Cash Advance Emerging Trends in P2P Lending and Merchant Cash Advance October 1, 2014 Katten Muchin Rosenman LLP www.kattenlaw.com Merchant Cash Advance and Daily Pay Commercial Financing: Differences and Developments

More information

State Small Business Credit Initiative

State Small Business Credit Initiative State Small Business Credit Initiative Collateral Enhancement Program Ohio Capital Access Program Targeted Investment Program The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services.

More information

U.S. Small Business Administration Presentation to SEC Forum. November 2009

U.S. Small Business Administration Presentation to SEC Forum. November 2009 U.S. Small Business Administration Presentation to SEC Forum November 2009 1 Small Business Plays a Significant Role in the Economy Themes Small businesses represent one of the largest segments of the

More information

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold

More information

Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows

Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF

More information

Financial Basics to Grow Your Business

Financial Basics to Grow Your Business Financial Basics to Grow Your Business Presenter: Sheila Spangler, Vice President/Director Business Resource Center 25 years experience commercial lender, business advisor/consultant Education: Certified

More information

FASB s Proposed Standards on Accounting for Financial Instruments

FASB s Proposed Standards on Accounting for Financial Instruments FASB s Proposed Standards on Accounting for Financial Instruments Kevin Chiu Accounting Policy Analyst Board of Governors of the Federal Reserve System The Disclaimer.. The views expressed today are my

More information

Elements of a Successful MBL Program. Creating And Sustaining Your MBL Competitive Advantage

Elements of a Successful MBL Program. Creating And Sustaining Your MBL Competitive Advantage Creating And Sustaining Your MBL Competitive Advantage Jim Devine, CEO, Hipereon, Inc. Let s Define Some of The Strategic Concerns For Member Business Lending Where are we Now? There are 2,000+ Credit

More information

EIS Mini-Project: P2P Lending

EIS Mini-Project: P2P Lending Lending Club Lending Club is a US-based peer-to-peer lending company, which was founded in 2006 in San Francisco, California. Lending Club uses an online marketplace to connect borrowers and investors

More information

2014 Survey of Credit Underwriting Practices

2014 Survey of Credit Underwriting Practices 2014 Survey of Credit Underwriting Practices Office of the Comptroller of the Currency Washington, D.C. December 2014 Contents Introduction... 1 Part I: Overall Results... 3 Primary Findings... 3 Commentary

More information

Alternative Financing for Small Businesses - IBANYS. June, 2015 Jim Conroy, Senior Vice President New York Business Development Corporation

Alternative Financing for Small Businesses - IBANYS. June, 2015 Jim Conroy, Senior Vice President New York Business Development Corporation Alternative Financing for Small Businesses - IBANYS June, 2015 Jim Conroy, Senior Vice President New York Business Development Corporation 1 About NYBDC NYBDC was formed in 1955 and is owned by banks Approximately

More information

Plan and Track Your Finances

Plan and Track Your Finances Chapter 9 Plan and Track Your Finances 9.1 Finance Your Business 9.2 Pro Forma Financial Statements 9.3 Record Keeping for Businesses Ideas in Action Electronic Safekeeping Katelin Shea addressed the unmet

More information

Art or Science? Modeling and Challenges in the Post-Financial Crisis Economy

Art or Science? Modeling and Challenges in the Post-Financial Crisis Economy Art or Science? Modeling and Challenges in the Post-Financial Crisis Economy Emre Sahingur, Ph.D. Chief Risk Officer for Model Risk Fannie Mae May 2015 2011 Fannie Mae. Trademarks of Fannie Mae. 2015 Fannie

More information

Supplemental Information Second Quarter 2016

Supplemental Information Second Quarter 2016 Supplemental Information This information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the

More information

Concentrations in Commercial Real Estate Lending

Concentrations in Commercial Real Estate Lending Concentrations in Commercial Real Estate Lending CRE Trends Commercial Real Estate lending (CRE) concentrations have risen significantly at community banks in recent years Small Banks versus Large Banks

More information

Funding the Cyclical Business. Lorem Ipsum

Funding the Cyclical Business. Lorem Ipsum Lorem Ipsum Funding the Cyclical Business Acquiring the necessary working capital a business needs to grow and thrive in an uncertain economic climate. A PublicATION 2 OVERVIEW This white paper will discuss

More information

Managing Small Business Banking Regulatory and Class Action Risk. Scott M. Pearson Cory Kampfer Chief Legal Officer Ballard Spahr LLP OnDeck

Managing Small Business Banking Regulatory and Class Action Risk. Scott M. Pearson Cory Kampfer Chief Legal Officer Ballard Spahr LLP OnDeck Managing Small Business Banking Regulatory and Class Action Risk Scott M. Pearson Cory Kampfer Partner Chief Legal Officer Ballard Spahr LLP OnDeck Overview Regulation of traditional small business lending

More information

The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing

The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing Commercial Lenders The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing The FFCFC 504 Loan Program is designed to help small business owners expand through the purchase

More information

SSBCI PROGRAM PROFILE: COLLATERAL SUPPORT PROGRAM. May 17, 2011 State Small Business Credit Initiative (SSBCI) U.S. Department of the Treasury

SSBCI PROGRAM PROFILE: COLLATERAL SUPPORT PROGRAM. May 17, 2011 State Small Business Credit Initiative (SSBCI) U.S. Department of the Treasury SSBCI PROGRAM PROFILE: COLLATERAL SUPPORT PROGRAM May 17, 2011 (SSBCI) U.S. Department of the Treasury What is a Collateral Support Program? A Collateral Support Program is designed to enable financing

More information

SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS

SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS February 14, 2012 Terrence K. McHugh President Commercial Alliance 1 Business Lending in Credit Unions 1998 regulation limits business lending in

More information

September 30, 2015. Marketplace Lending RFI U.S. Department of the Treasury 1500 Pennsylvania Ave NW., Room 1325 Washington, DC 20220

September 30, 2015. Marketplace Lending RFI U.S. Department of the Treasury 1500 Pennsylvania Ave NW., Room 1325 Washington, DC 20220 September 30, 2015 Marketplace Lending RFI U.S. Department of the Treasury 1500 Pennsylvania Ave NW., Room 1325 Washington, DC 20220 Dear Sir or Madam, The American Bankers Association (ABA) 1 and the

More information

SSBCI PROGRAM PROFILE: LOAN PARTICIPATION PROGRAM. May 4, 17, 2011 State Small Business Credit Initiative (SSBCI) U.S. Department of the Treasury

SSBCI PROGRAM PROFILE: LOAN PARTICIPATION PROGRAM. May 4, 17, 2011 State Small Business Credit Initiative (SSBCI) U.S. Department of the Treasury SSBCI PROGRAM PROFILE: LOAN PARTICIPATION PROGRAM May 4, 17, 2011 (SSBCI) U.S. Department of the Treasury What is a Loan Participation Program? A Loan Participation Program enables small businesses to

More information

Corporate Financing Strategies For Emerging Companies HAUSWIESNER KING LLP

Corporate Financing Strategies For Emerging Companies HAUSWIESNER KING LLP Corporate Financing Strategies For Emerging Companies What is Corporate Finance? The process by which companies raise capital, especially to fund growth, acquisitions etc. The primary goal of corporate

More information

Morgan Stanley Reports First Quarter 2013:

Morgan Stanley Reports First Quarter 2013: Media Relations: Wesley McDade 212-761-2430 Investor Relations: Celeste Mellet Brown 212-761-3896 Morgan Stanley Reports First Quarter 2013: Net Revenues of $8.2 Billion Included the Negative Impact of

More information

NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS

NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS NAS 03 NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS CONTENTS Paragraphs OBJECTIVE SCOPE 1-3 BENEFITS OF CASH FLOWS INFORMATION 4-5 DEFINITIONS 6-9 Cash and cash equivalents 7-9 PRESENTATION OF A

More information

Financial System Inquiry SocietyOne Submission

Financial System Inquiry SocietyOne Submission Financial System Inquiry SocietyOne Submission SocietyOne is pleased to make the following submission to the Financial System Inquiry. SocietyOne is Australia s first fully compliant Peer-to-Peer (P2P)

More information

MICRO LOAN PROGRAM LOCAL COMMITTEE MANUAL APRIL, 2014

MICRO LOAN PROGRAM LOCAL COMMITTEE MANUAL APRIL, 2014 MICRO LOAN PROGRAM LOCAL COMMITTEE MANUAL APRIL, 2014 Regional business fund, inc. FOR MORE INFORMATION CONTACT: REGIONAL BUSINESS FUND, INC. 800 WISCONSIN STREET, MAIL BOX 9 EAU CLAIRE, WI 54703 Phone:

More information

One Lincoln Street Boston, MA United States of America March 6, 2015

One Lincoln Street Boston, MA United States of America March 6, 2015 Disclosure of Company-Run Stress Test Results State Street Corporation (State Street or the Company), like other covered companies governed by the provisions of Section 165 of the Dodd-Frank Wall Street

More information

Borrowing 101. Resources. Are you ready to Borrow?

Borrowing 101. Resources. Are you ready to Borrow? Borrowing 101 The BDC wants your business to succeed and in turn pay the BDC back. Our programs are revolving loan funds that require loans to be repaid so that we can lend our dollars to other businesses

More information

The Small Business Banking Conference

The Small Business Banking Conference The Small Business Banking Conference Palm Beach Gardens, FL Karen G. Mills Senior Fellow, Harvard Business School Former Administrator of the U.S. Small Business Administration November 9 th, 2016 WHAT

More information

Mortgage Loan Conduit & Securitization Two Harbors Investment Corp. November 4, 2015

Mortgage Loan Conduit & Securitization Two Harbors Investment Corp. November 4, 2015 Two Harbors Investment Corp. November 4, 2015 Two Harbors Investment Corp. is proud to present a webinar titled: Mortgage Loan Conduit and Securitization. Periodic webinars from Two Harbors will provide

More information

Peer-to-Peer Commercial Property Lending

Peer-to-Peer Commercial Property Lending Peer-to-Peer Commercial Property Lending Why Commercial Real Estate Debt is the Perfect Partner for P2P Lending Retail Industrial Office INTRODUCTION Peer-to-Peer Lending, also known as Loan Based Crowdfunding,

More information

CDA BLF LOAN APPLICATION

CDA BLF LOAN APPLICATION CDA BLF LOAN APPLICATION Name of of Business (Legal Name): Address: City, State, Zip: Business Phone // Fax: Federal Tax ID#: Principals Principal 1 Principal 2 Name: Address: City, State, Zip: Phone:

More information

Financial Planners & Registered Investment Advisors. MarketPlace Finance A Wealth Accelerator For High Net Worth Clients

Financial Planners & Registered Investment Advisors. MarketPlace Finance A Wealth Accelerator For High Net Worth Clients Financial Planners & Registered Investment Advisors MarketPlace Finance A Wealth Accelerator For High Net Worth Clients 1 What is Crowdfunding? The practice of funding a project or venture by raising small

More information

Dodd Frank Act Consumer Financial Protection Bureau Mortgage Lending

Dodd Frank Act Consumer Financial Protection Bureau Mortgage Lending Dodd Frank Act Consumer Financial Protection Bureau Mortgage Lending A Briefing for the Texas House Investments and Financial Services Committee John C. Fleming Consumer Financial Protection Bureau (CFPB)

More information

NUMERICAL ANSWER [1700-2014] (four digits, less or equal than [YEAR OF SURVEY]) [DK/NA]... 9999

NUMERICAL ANSWER [1700-2014] (four digits, less or equal than [YEAR OF SURVEY]) [DK/NA]... 9999 European Commission and European Central Bank Survey on the access to finance of SMEs, October 2013 to March 2014 Hello, my name is [interviewer] and I am calling from [NON-UK: Ipsos / UK: Ipsos MORI]

More information

AL 98-9 Subject: Access to Financing for Minority Small Businesses Date: July 15, 1998

AL 98-9 Subject: Access to Financing for Minority Small Businesses Date: July 15, 1998 AL 98-9 Subject: Access to Financing for Minority Small Businesses Date: July 15, 1998 TO: Chief Executive Officers of all National Banks, Department and Division Heads, and all Examining Personnel PURPOSE

More information

Fourth Quarter 2016 Results. January 24, 2017

Fourth Quarter 2016 Results. January 24, 2017 Fourth Quarter 2016 Results January 24, 2017 1 Forward-Looking Statements Please note that the following materials containing information regarding Capital One s financial performance speak only as of

More information

SBA Programs to Help You Start & Grow Your Small Business

SBA Programs to Help You Start & Grow Your Small Business SBA Programs to Help You Start & Grow Your Small Business U.S. Small Business Administration 6501 Sylvan Road, Suite 100 Citrus Heights, CA 95610 916-735-1700 www.sba.gov 08?11 BUSINESS LOANS & THE SBA

More information

FSB invites feedback on residential mortgage underwriting practices

FSB invites feedback on residential mortgage underwriting practices Press release Press enquiries: Basel +41 76 350 8430 Press.service@bis.org Ref no: 38/2010 20 September 2010 FSB invites feedback on residential mortgage underwriting practices The Financial Stability

More information

Short Term Loans and Lines of Credit

Short Term Loans and Lines of Credit Short Term Loans and Lines of Credit Disadvantaged Business Enterprise (DBE) Supportive Services Program The contents of this training course reflect the views of the author who is responsible for the

More information

GLOSSARY COMMONLY USED REAL ESTATE TERMS

GLOSSARY COMMONLY USED REAL ESTATE TERMS GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These

More information

Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation

Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Concentrations in Commercial Real Estate Lending, Sound Risk Management

More information

ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN

ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN WHAT MAKES A GOOD BUSINESS PLAN? A business plan is a written document, which outlines: the business and owner s background the proposed resources to be used

More information

WEBINAR LOGISTICS. How to ask a question Group is muted If you get cut off

WEBINAR LOGISTICS. How to ask a question Group is muted If you get cut off WEBINAR LOGISTICS How to ask a question Group is muted If you get cut off 3 ONLINE BUSINESS LOANS BARBARA A. VOHRYZEK, California Small Business Advocate SUSAN RILEY BROWN, Business & Community Development

More information

The Economic Impact of OnDeck s Lending. Prepared by Analysis Group November 17, 2015

The Economic Impact of OnDeck s Lending. Prepared by Analysis Group November 17, 2015 The Economic Impact of OnDeck s Lending Prepared by Analysis Group November 17, 2015 1 I. Executive Summary Small businesses account for nearly half the economic output and employment of the U.S. economy,

More information

Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144

Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144 Contact: Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144 AIG REPORTS FIRST QUARTER 2006 NET INCOME OF $3.20 BILLION NEW YORK, NY, May 10, 2006 American International

More information

Ethiopian Institute of Financial Studies (EIFS) PROJECT FINANCE

Ethiopian Institute of Financial Studies (EIFS) PROJECT FINANCE PROJECT FINANCE With the growth in the economy and the revival in the industrial sector coupled with the increasing role of private players in the field of infrastructure, more and more Ethiopian banks

More information

Note 31: Fair Value of Financial Instruments

Note 31: Fair Value of Financial Instruments Note 31: Fair Value of Financial Instruments We record trading assets and liabilities, derivatives, available-for-sale securities and securities sold but not yet purchased at fair value, and other non-trading

More information

Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows

Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows Sri Lanka Accounting Standard-LKAS 7 Statement of Cash Flows CONTENTS SRI LANKA ACCOUNTING STANDARD-LKAS 7 STATEMENT OF CASH FLOWS paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS

More information

THREE REASONS START-UPS NEED FUNDING

THREE REASONS START-UPS NEED FUNDING OBJECTIVES Identify sources of funding Prioritize sources of funding Understand how sources may change Outline your personal action plan for funding your business THREE REASONS START-UPS NEED FUNDING CASH

More information

Banks in Canada Helping our Small and Medium-sized Enterprises Grow and Succeed

Banks in Canada Helping our Small and Medium-sized Enterprises Grow and Succeed Banks in Canada Helping our Small and Medium-sized Enterprises Grow and Succeed October 2013 Overview Small and medium sized enterprises (SMEs 1 ) are a vital part of the Canadian economy and, as a result,

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

Unsecured Business Lines Of credit. Real Estate Investors, Business Owners, Start Up Business

Unsecured Business Lines Of credit. Real Estate Investors, Business Owners, Start Up Business Unsecured Business Lines Of credit Real Estate Investors, Business Owners, Start Up Business What is this program? This program is an alternative funding method with these great features No Collateral

More information

First Time Home Buyer Glossary

First Time Home Buyer Glossary First Time Home Buyer Glossary For first time home buyers, knowing and understanding the following terms are very important when purchasing your first home. By understanding these terms, you will make

More information

Athens University of Economics and Business

Athens University of Economics and Business Athens University of Economics and Business MSc in International Shipping, Finance and Management Corporate Finance George Leledakis An Overview of Corporate Financing Topics Covered Corporate Structure

More information

How Do I Qualify for a loan?

How Do I Qualify for a loan? How Do I Qualify for a loan? Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy. Before you approach your banker for a loan, it is

More information

Plan and Track Your Finances

Plan and Track Your Finances Plan and Track Your Finances 9.1 Financing Your Business 9.2 Pro Forma Financial Statements 9.3 Recordkeeping for Businesses Lesson 9.1 Financing Your Business Goals Estimate your startup costs and personal

More information

United States of America. Presentation of financial resources available to US investors in Afghanistan; Financial Tools

United States of America. Presentation of financial resources available to US investors in Afghanistan; Financial Tools United States of America Presentation of financial resources available to US investors in Afghanistan; Financial Tools Kabul, February 2007 Research categories for all countries Finance Categories 1. Equity

More information

CANADIAN TIRE BANK. BASEL PILLAR 3 DISCLOSURES December 31, 2014 (unaudited)

CANADIAN TIRE BANK. BASEL PILLAR 3 DISCLOSURES December 31, 2014 (unaudited) (unaudited) 1. SCOPE OF APPLICATION Basis of preparation This document represents the Basel Pillar 3 disclosures for Canadian Tire Bank ( the Bank ) and is unaudited. The Basel Pillar 3 disclosures included

More information

2016 DFAST Annual Stress Test Disclosure. June 2016

2016 DFAST Annual Stress Test Disclosure. June 2016 2016 DFAST Annual Stress Test Disclosure June 2016 Overview In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing regulations issued by the Board of Governors

More information

Supporting Statement for the Domestic Finance Company Report of Consolidated Assets and Liabilities (FR 2248; OMB No. 7100-0005)

Supporting Statement for the Domestic Finance Company Report of Consolidated Assets and Liabilities (FR 2248; OMB No. 7100-0005) Supporting Statement for the Domestic Finance Company Report of Consolidated Assets and Liabilities (FR 2248; OMB No. 7100-0005) Summary The Board of Governors of the Federal Reserve System, under delegated

More information

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for. A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe

More information

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,

More information

The Canada Life Assurance Company ANNUAL REPORT

The Canada Life Assurance Company ANNUAL REPORT The Canada Life Assurance Company 2007 ANNUAL REPORT CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This report contains some forward-looking statements about the Company, including its business

More information

PURCHASE MORTGAGE. Mortgage loan types

PURCHASE MORTGAGE. Mortgage loan types PURCHASE MORTGAGE Mortgage loan types There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation

More information

Acceleration Clause Provision in a mortgage that allows the lender to demand payment of the entire principal balance if a monthly payment is missed

Acceleration Clause Provision in a mortgage that allows the lender to demand payment of the entire principal balance if a monthly payment is missed Acceleration Clause Provision in a mortgage that allows the lender to demand payment of the entire principal balance if a monthly payment is missed or some other default occurs. Additional Principal Payment

More information

Business Plan Guidelines

Business Plan Guidelines Business Plan Guidelines The following Business Plan Format checklist is meant as a guideline only listing the most important sections of the business plan in the order in which they will likely appear

More information

Department of Veterans Affairs October 2010 Liabilities for Loan Guarantees Volume VI Chapter 6 0601 OVERVIEW... 2 0602 POLICIES...

Department of Veterans Affairs October 2010 Liabilities for Loan Guarantees Volume VI Chapter 6 0601 OVERVIEW... 2 0602 POLICIES... VA Financial Policies and Procedures Liabilities for Loan Guarantees CHAPTER 6 0601 OVERVIEW... 2 0602 POLICIES... 3 0603 AUTHORITY AND REFERENCES... 5 0604 ROLES AND RESPONSIBILITIES... 6 0605 PROCEDURES...

More information

Acquisition of Business Property Lending. Investor Conference Call July 2, 2012

Acquisition of Business Property Lending. Investor Conference Call July 2, 2012 Acquisition of Business Property Lending Investor Conference Call July 2, 2012 Disclaimer THIS PRESENTATION HAS BEEN PREPARED BY EVERBANK FINANCIAL CORP ("EVERBANK" OR THE COMPANY ) SOLELY FOR INFORMATIONAL

More information

Small Business Administration

Small Business Administration Financing the SBA Way Wayne Bell District Director Wichita District Office June 6, 2012 1 Agency History SBA What it is Federal Agency Created in 1953 Purpose To help potential and current small business

More information

BORROWING MONEY FOR YOUR BUSINESS

BORROWING MONEY FOR YOUR BUSINESS BORROWING MONEY FOR YOUR BUSINESS Disclaimer: There are thousands of books and websites that provide a great depth of information about how to finance a business with loans. This document provides a quick

More information