Engaging CRBT to bring longer term, fixed interest rate loans to assist rural business

Transcription

1 Engaging CRBT to bring longer term, fixed interest rate loans to assist rural business Team EDGE August 6, 2015 Presented by: Randy Frescoln Vice President, Specialty Finance Group ;

2 What can CRBT do for you? Willing to make longer term, fixed interest rate loans in rural communities, which improves cash flow by lowering payments. Review projects and provide proposal Work with local lenders

3 Who is CRBT? Part of $2.5 billion asset, full service, community bank holding company SBA Preferred Lender. # 1 SBA bank in Iowa over last six years (FY09 14) USDA National Business & Industry Lender of the Year

4 What makes CRBT different from other community commercial lenders? CRBT is willing to make long term, fixed interest rate business loans in ANY USDA eligible rural area within the Midwest Region.

5 Why use USDA Loan Guarantees 1. More financing options 2. Longer repayment terms (7/15/30 years) 3. Improved cash flow 4. Larger loan on rural collateral 5. Comfort against business cycle fluctuations

6 CRBT B&I Loan Guarantee Production 26 Loan Guarantees, exceeding $87 million, closed in Iowa, Minnesota, South Dakota and Wisconsin. 4 applications, exceeding $25 million, in process in Illinois and Iowa. Loans range from $1 million to $21 million ($5 MM ave.) No losses or delinquencies

7 CRBT B&I Customers Manufacturers (50%) Real Estate Holding Companies (from university housing to ex Maytag industrial complex) Value added agriculture food and feed ingredient processors Traditional Agricultural supply elevators Convalescent homes Residential mental health and substance abuse facilities Office supply and stationery stores Medical, dental and hospital equipment wholesaler

8 Example - Rural manufacturer wanted $3.7 MM - purchase extruder equipment $1.3 MM - expand facility Keep line of credit local To help anyway they can

9 Local lender wanted Continue operating loan and business relationship Mitigate legal lending limitations purchase and 2006 expansion loans To help anyway they can

10 Community wanted Business to expand locally USDA IRP RLF funds assisted in 2001 purchase. USDA RBEG funds help develop industrial park To help anyway they can

11 Rural Electric Cooperative wanted Business to expand locally 2001 built / leased w option to buy building with USDA REDL Program expansion with USDA REDG Program. To help anyway they can

12 Italian equipment vendor wanted Sell extruder press equipment To help anyway they can

13 CRBT invited to table Expertise and willingness to make long term, fixed interest rate loans in any USDA eligible rural area using USDA Loan Guarantee Programs Willing to be good partner To help anyway we can

14 Business final result Refinanced existing real estate debt, obtained new extruder equipment and facility expansion (favorable package) 25 year term, fixed interest rate on RE 15 year term, fixed interest rate on equipment

15 Local Lender final result Outstanding 2001 purchase and 2006 expansion loans paid off, which helped legal lending limit compliance Maintained operating line and banking relationship Participating with CRBT on new loans made

16 Community final result Existing company expanded locally Job and tax base benefits USDA IRP and RBEG (now known as RBDG) established RLF funds available for future needs

17 Rural Electric Cooperative final result Existing 2006 REDG loan continues New $150,000, 2% - 10 year loan to fund extruder equipment from REDG established RLF New $1 million, 0% - 10 year REDL

18 Italian equipment vendor final result Extruder press equipment sale Priced invoice in US dollars to eliminate currency risk to company and bank 7 year note on portion of extruder sale until USDA REDL funds obtained

19 CRBT final result USDA B&I Loan Guarantee 25 year term, fixed interest rate USDA B&I Loan Guarantee 15 year term, fixed interest rate 7 year note on portion of extruder sale until USDA REDL funds obtained

20 Community Development Tool Kit B&I Loan Guarantees - up to $25 MM Establish community RLF a) RBDG $50 - $100 K b) IRP - $2/$15MM / $150K sub loan REC - USDA REDL&G $1MM (L) or $300K (G) CF Loan Guarantees no limit W&WD Loan Guarantees no limit

21 CRBT has expertise rural business can bank on Willing to make loans with longer repayment terms to rural business in any USDA eligible area Willing to be a good partner with local development participants We ask for a chance to review the project and provide a proposal

22 What makes CRBT different from other community commercial lenders? CRBT is willing to make l _ term, f interest rate business loans in A USDA eligible rural area within the M Region.