Community Development Corporation of Northeast Indiana

Transcription

1 Community Development Corporation of Northeast Indiana Annual Report

2 Message from the President Yogi Berra, beloved catcher for some of the legendary New York Yankee teams of the 1950 s and 1960 s, is known for his pithy quotes almost more so than for his prowess on the baseball diamond. One such quote, It s déjà vu all over again, originally referenced back-to-back home runs from immortal sluggers Mickey Mantle and Roger Maris. When looking back on the U.S. economy in 2012 one could easily borrow that quote from Mr. Berra to describe what unfolded relative to Buoyed by stronger than anticipated productivity growth in the first quarter, increased consumer spending, an improving housing market, growing exports and higher levels of business investment, the year started off on a positive note raising hopes that The Great Recovery was finally gaining momentum. By the end of the year, however, the momentum had waned and while real GDP increased by 2.2%, it fell short of expectations and served as a reminder that the road to recovery is not a fast-laneonly superhighway. Unemployment, while making a half percent improvement, sat near 8%. Fewer Americans were working than at any time in the last three decades. New jobs at small, start-up businesses were at 7.8 per 1,000 Americans, the lowest amount in 20 years. In addition, the late-year ravages of Hurricane Sandy had significant impact on areas along the East Coast and the fiscal cliff cast a shadow of uncertainty over the American economic landscape. Fortunately, the CDC forged ahead and addressed the needs of its nine-county service area in Northeastern Indiana in record fashion. With the continued help of its existing bank partners as well as some new partners the CDC closed 31 loans totaling just under $11 million, more than twice the dollar amount closed in Additionally, 45 new loans were approved for just under $22 million, more than three times the 2011 dollar amount. Within these new approvals was the creation of 397 full-time and 74 part-time jobs and overall project financing of more than $46.5 million. The CDC has clearly stepped up to address the challenge of economic growth. The commitment and resolve of the CDC staff, Cheryl, Misty, Darren and Dawn, is to be commended. Your service is invaluable. To the Board Members I again offer my thanks for your continued commitment as well. Every decision is not cut and dry and the time and effort you put forth to serve your respective communities is vital to their continued growth and improvement. With the New Year come new challenges, some known and some unknown. It is my hope that it s déjà vu all over again when we look at the performance of the CDC in 2013 relative to The bar has been set high but the pieces are in place to again raise it to another level. I would like to offer my deepest thanks for the privilege and honor of serving as Board President and look forward to a prosperous Sincerely, Dennis Tratnyek President

3 AT A GLANCE CDC Successes The primary objective of the Community Development Corporation of Fort Wayne Inc. d/b/a the Community Development Corporation of Northeast Indiana (CDC), is to assist in the start-up, development and continued growth of small to mid-sized businesses in Indiana. Since 1978 we have done this by partnering with various banks and governmental agencies in creating and sustaining alternative loan programs for small business owners that are unable to obtain conventional financing. We are a United States Small Business Administration, non-profit 501c(6), certified development company, sponsored by the City of Fort Wayne. In exchange for receiving financing through the CDC, business owners must commit to creating new jobs or show just cause, that by not receiving financing, some jobs would be lost. A loan can be made in conjunction with bank financing or, in some cases, can be made directly to the business without requiring a matching bank loan. CDC loans can be used to finance working capital, equipment and land purchases or building acquisition, construction or renovations. All of the CDC s loan programs offer rates that are at or sometimes below market rates. All CDC loan terms and rates, when established at closing are fixed rate for the life of the loan. In 2012, we saw a small increase in the number of applications taken from 53 in 2011 up to 58 in Our great improvement was in the amount of the requested financing for the projects involved in those requests. In 2011, of the 53 applications we took, we approved 35 for a total of $6,239,066 in CDC financing. In 2012, we approved 45 of the 58 applications for $18,701,972 in CDC financing. Jobs created also increased from 184 in 2011 to 471 in We owe a lot of the credit in the numbers increase to the US SBA program, which for the first time in its history, allowed small business owners that had mortgage loan balloon debt coming due, to refinance their mortgage allowing the SBA to accept some of the banks risk while also allowing cash out for operations if there was available equity in the building. Our industry is lobbying our Congressional and Senate delegates in Washington with the hope that they will consider making changes to the SBA 504 loan program. Our short term goal is for a reauthorization of these changes for at least for a five year trial period, which will hopefully equate to a permanent change as these growth numbers indicate a need. Please visit our website at to learn more about our programs.

4 45 Projects Approved in 2012 A Capsule of the 2012 Loan Activity vs Activity Total Projects Approved: Total CDC Financing Approved: $21,906,725 $ 6,239,066 Total Project Amount: $46,506,234 $16,512,004 Full Time Jobs Projected: Part Time Jobs Projected: 74 45

5 Loan Activity (based on CDC funds vs. SBA)

6 Loan History (based on each loan program)

7 CDC BOARD OF DIRECTORS Beth Bobay SCAN, Inc. John Boerger Martin Riley Wayne Burton Crossroads Ft. Wayne Children s Home Dave Fuller Allen County Building Dept. Ralph Garcia ACE Interpretations, Inc. Mark Hartman Tower Bank Jill Keim iab Bank Dan Kohnen 3 Rivers Federal Credit Union Barbara Johnson Sheekriphil, Inc. Ken McCrory Dekalb County EDP Caryn Myrice Apollo Design Technology Andrew Nwanne Indiana Institute of Technology Tim Rice 1 st Source Bank Eric Steenman Lake City Bank Alan Tio Whitley County EDC Dennis Tratnyek STAR Financial Bank CDC 2012 Officers: Dennis Tratnyek President Wayne Burton Vice President Caryn Myrice Treasurer Dave Fuller - Secretary

8 The CDC Staff The Community Development Corporation of Fort Wayne Inc. (CDC) staff work to market, underwrite and process our numerous loan programs which are available to small businesses located throughout the State of Indiana. Staff members are employees of the City of Fort Wayne, contracted to the CDC, but answerable to our 18-member Board of Directors. Staff members pictured here include Dawn Wixom, Assistant Secretary, Bookkeeper and Administrative Assistant; Darren Renier, Loan Specialist; Misty Ryan, Loan Specialist and Cheryl Blackman, Executive Director and Chief Operating Officer. The CDC staff wishes to acknowledge and show appreciation to its Board of Directors for their time and expertise devoted to our operations. They demonstrate their continued desire to ensure the vitality of small businesses within the State of Indiana through their continued commitment to our organization. For Information, please contact: Community Development Corporation of Northeast Indiana 200 E. Berry Street, Suite 320 Fort Wayne, Indiana (260)