Economic Development Finance Professional Certification Program. Economic Development Finance Professional Certification Program (EDFP)

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1 Ecnmic Develpment Finance Prfessinal Certificatin Prgram I. Curriculum Ecnmic Develpment Finance Prfessinal Certificatin Prgram (EDFP) "NDC's EDFP Certificatin Prgram gave me the fundatin t wrk with a brad range f cmmunity develpment players. Thrugh the training, I acquired the skills and ability that allw me t quickly analyze and determine feasible prjects." Richard LPresti, Directr, Department f Ecnmic and Cmmunity Develpment, State f Cnnecticut Our training is specially geared t develping knwledge and skills essential t making deals happen. The Ecnmic Develpment Finance Prfessinal (EDFP) Certificatin Prgram is a rigrus, fur-curse training series that explres the skills essential fr the successful practice f ecnmic develpment - business credit and real estate finance analysis techniques, lan packaging prcedures, negtiating and prblem slving skills and deal structuring techniques. Participants in the EDFP Certificatin Prgram build the capacity t translate develpment pprtunities int results fr their cmmunities. Tpics cvered in the EDFP Certificatin Prgram include the fllwing: Business credit Real estate finance analysis Lan packaging prcedures Negtiating and prblem slving skills Deal structuring techniques Yu will learn frm the real wrld examples f NDC curse instructrs. In additin t lessns drawn frm actual prjects, yu will learn thrugh hands-n exercises. Yu will be presented with prjects and will be challenged t cmplete them successfully. Certificatin candidates must cmplete all fur curses and pass the examinatin administered n the final day f each class. Yu may attend the curses at yur wn pace but may nt enrll in any curse until yu have met all prerequisites. 1

2 ED101-Ecnmic Develpment Finance - Pittsburgh Participants in ED101, the first curse in the EDFP Certificatin Prgram, gain a slid understanding f bth the basic tls and newest techniques used by successful ecnmic develpment finance practitiners t assist small businesses and create jbs. The curse explres ecnmic develpment activities as part f a cmmunity s verall ecnmic develpment finance strategy and investigates the financing resurces available fr jb creatin prjects. Participants analyze and structure ecnmic develpment prjects fr small and medium-sized businesses as well as cmmercial real estate develpments utilizing incentive financing packages. Specific tpics include: Ecnmic Develpment Finance Overview Financing gaps in the private capital markets Underwriting practices f private sectr lenders Plugging the gaps with ecnmic develpment financing incentives Implementing financing prgrams thrugh an ecnmic develpment system Business Credit Analysis Financial statement spreading and analysis Quality indicatrs and rati analysis Calculating debt service Fixed Asset Financing Measuring repayment ability Structuring incentive financing Real Estate Finance Develper s pr frma incme and expense statement Measuring return n investment Calculating the financing gap Ecnmic Develpment Finance Prgrams SBA 504 and 7(a) HUD CDBG and 108 New Markets Tax Credits Revlving lan funds and interim financing Lan packaging prcedures ED201-Business Credit Analysis - Pittsburgh In ED201, the secnd curse in the EDFP Certificatin Prgram, participants build n the financial analysis and deal structuring techniques learned in ED101 thrugh investigatin f advanced methds used t analyze the creditwrthiness f perating small businesses. The credit analysis and underwriting prcedures f cmmercial lenders are tailred t the unique cncerns f ecnmic develpment lenders. Participants spread and analyze the financial statements f numerus actual cmpanies manufacturing, service, retail and use ecnmic develpment finance prgrams t structure fixed asset and permanent wrking capital financing packages. 2

3 Specific tpics include: Credit Analysis Prcess Evaluating a cmpany s strengths and weaknesses Refining quality indicatr and rati analysis Assessing perating needs Measuring a cmpany s ability t digest grwth Permanent Wrking Capital Analysis Determining a cmpany s perating cycle Measuring PWC needs Financing a cmpany s grwth Cash Flw Analysis Analyzing cash flw management Determining debt capacity Matching surces and uses f funds Identifying fast grwth syndrme Prjectins and Deal Structuring Balance sheet and prfit and lss statement prjectins Evaluating financing ptins Break even analysis Structuring fixed asset and PWC financing Restructuring financing packages ED202-Real Estate Finance - Harrisburg Real estate develpment is the fcus f ED202, the third curse in the EDFP Certificatin Prgram. This curse ffers a step-by-step lk at the real estate develpment prcess frm the perspective f lenders, develpers and investrs. Participants analyze ecnmic develpment real estate prjects retail, ffice, mixed-use using the rates f return required by lenders, develpers and investrs, and determine the apprpriate amunt f public sectr financing needed t make prjects feasible. Public sectr financing tls and techniques, including tax credits, designed t attract, leverage and cmplement private financing, are utilized t maximize equity while minimizing the amunt f public investment. Specific tpics include: Real Estate Financing Prcess Calculating prject csts Prjecting the develper s pr frma Determining debt capacity Measuring equity attracted Quantifying the financing gap Clsing the gap Return n Investment Cash-n-cash rate f return After-tax cash flw rate Present value analysis Internal rate f return 3

4 Appraisals The capitalizatin rate Three appraches t value Recnciling value Impact f Taxes n Real Estate Ownership Depreciatin Leverage Tax credits Taxable gains and lsses ED300-The Art f Deal Structuring - Pittsburgh The final curse in the EDFP Certificatin Prgram, ED300 integrates the business credit and real estate finance skills learned in previus curses with the creative demands f deal structuring. Participants apply a prcess fr slving prblems in rder t vercme the myriad bstacles ecnmic, financial, plitical, scial t the successful structuring f business finance and real estate prjects. The emphasis f this curse is casewrk. Participants are challenged by case studies that invlve cmplex financial issues such as wrkuts, business buyuts and tax credits in real estate prjects. Specific tpics include: Prblem Slving Elements f the prblem slving prcess Devising a negtiatin strategy Creating win-win slutins Deal Structuring Valuing tax credits Mixed-use develpments Wrkuts and Buy-uts Develping a wrkut plan Business valuatin methds Structuring a buy-ut Syndicatin Equity attractin Allcatin f benefits Limited partnership mdel II. Curse Name and Prpsed Dates ED101 Ecnmic Develpment Finance - Pittsburgh April 4-8, 2016 ED201 Business Credit Analysis Pittsburgh September 12-16, 2016 ED202 Real Estate Finance Harrisburg April 3-7, 2017 ED300 The Art f the Deal Structuring - Pittsburgh September 11-15,

5 III. Fee Schedule EDFP Certificatin Prgram - Pittsburgh - Spnsrs Include: Allegheny Cunty Ecnmic Develpment, PA Department f Cmmunity and Ecnmic Develpment, URA Urban Redevelpment Authrity, PNC, FHLBank f Pittsburgh Full Prgram $3,500 Spnsr $3,700 Nn Spnsr Price Schlarship Price fr Full Prgram $1,750 Ecnmic Develpment Finance (101) Business Credit Analysis (201) Real Estate Financing (202) The Art f Deal Structuring (300) $900 Spnsr $1,100 Nn Spnsr Price $900 Spnsr $1,100 Nn Spnsr Price $900 Spnsr $1,100 Nn Spnsr Price $900 Spnsr $1,100 Nn Spnsr Price 5