Lisa McComb Executive Director

Lisa McComb Executive Director

1131 W. Conway Road Suite A Harbor Springs, MI 49740 231-347-6753 www.northernshoresloanfund.org

* Originated in 1960s-1970s * Creation of CDFI Fund in the Department of Treasury in 1994 GOALS: 1. Spur economic and community development in distressed areas 2. Assist clients in entering successfully into financial mainstream. 3. Provide financial products and services to underserved populations who find it difficult to access these services. National Stats Michigan Certified CDFI s = 988 Certified CDFI s = 17 Certified Native CDFI s = 71 Certified Native CDFI = 2

2001 U.S. Department of Treasury s CDFI Fund Release of Native American Lending Study. 71 Native Certified CDFI s in 19 States Native CDFI s are: 1. Renewing traditional Native values of self-sufficiency 2. Assisting with wise resource management 3. Facilitating Tribal Entrepreneurship - Corporate and Individual Levels

Northern Shores Loan Fund, Inc. is the FIRST Certified Native CDFI in Northern Lower Michigan Certification Obtained in 2009 (One Year in Advance of CDFI Fund Performance Goals) To assist tribal and non tribal entrepreneurs of Northern Michigan with training, business incubation, and access to capital that fosters economic development for the Northern Michigan community.

CDFI Certification CDFI certification is a coveted designation conferred by the Fund that indicates that a financial institution provides financial products and services in defined underserved and economically distressed target markets. CERTIFICATION CRITERIA: 1. Be a legal entity 2. Have a primary mission of promoting community development 3. Be a financing entity 4. Primarily serve one or more target markets 5. Provide development services in conjunction with its financing activities 6. Maintain accountability to its defined target market 7. Be a non-government entity and not be under control of any government entity (Tribal governments excluded).

What Certification means to NSLF ACCESS TO CAPITAL IN THE FORM OF CDFI FUND GRANTS TO LEND WITH PRINCIPAL AND INTEREST PAYMENTS UNRESTRICTED FOR FUTURE LENDING ENHANCE NSLF S ABILITY TO RAISE FUNDS FROM FOUNDATIONS AND STATE AND LOCAL GOVERNMENTS FACILITATE NMTC ACCESS VALIDATION OF ORGANIZATIONAL FISCAL SOUNDNESS HELP MORE CLIENTS TO CREATE AND RETAIN JOBS!

TIMELINE 2001 LTBB initiated community meetings through the Economic Development Commission (EDC) to investigate the possibility of making venture capital available to members. 2002-2005 EDC attended Community Development Financial Institution(CDFI) trainings specific to Native communities and applied for grant funding through the NACA(Native American CDFI Assistance) program within the Department of Treasury. 2006 EDC and Oweesta Corporation(a native CDFI intermediary organization) conducted a community marketing study and interviews with results supporting the need for financial education and funding for entrepreneurs. LTBB, as Sponsoring Entity, receives first CDFI NACA TA grant award for operational funding for EDC to begin laying groundwork of NSLF through development of Articles of Incorporation, By-laws and Loan Policies.

TIMELINE - continued 2007 NSLF incorporates through LTBB Department of Commerce, organizing as non profit corporation, and receives first CDFI NACA TA Grant on its own. 2008 Office location established with first staff person hired. IRS 501(c)(3) designation obtained NSLF Receives 2 nd CDFI NACA TA Grant 2009 First loans made to local existing and start-up businesses in Northern Michigan. EDC Members and FOUNDING NSLF Board of Directors

TIMELINE - continued 2009 First Annual NSLF Founder s Day Event held. Funded our first loans. CDFI Certification Obtained 1 year ahead of CDFI Fund Performance Goals Board of Directors Expanded from 5 to 7 Members. 2010 Filled Standing Committee positions. Received CDFI NACA TA Grant 2 nd Staff Person hired Loan Portfolio grows to six loans - providing over $60,000 to entrepreneurs. Conducted first credit counseling workshops Assisted over 100 clients with Business Development Education needs since 2008 NSLF 2010 Board of Directors Held first NSLF fundraiser in LTBB Government Center

2011 NSLF portfolio grows to 8 clients lending over $96,000. NSLF provides business education services to over 75 clients in 2011. NSLF receives first CDFI NACA FA Grant of $725,000 to expands its loan capital and continue to meet loan demand. NSLF receives first US Department of Agriculture Rural Business Enterprise Grant of $99,000 for lending. NSLF is selected as one of 16 out of 70 Native Certified CDFI s nationally to participate in NeighborWorks America s first Native Leadership Journey Training Series. 2012 Board of Directors

2012 NSLF Lends over $108,000 in first quarter. NSLF provides business education services to over 25 clients first quarter. NSLF expands staff to include part-time Loan Officer. NSLF will see two of its original loans paid to term. NSLF continues to experience less than 1% delinquency.

WHAT WE DO.... Northern Shores Loan Fund, Inc. provides Loan & Development Services

LOAN FUNDS * Business Loans to Existing or Start-up Businesses in Antrim, Charlevoix, Cheboygan, Emmet, Grand Traverse, and Kalkaska counties * Primary focus is serving tribal entrepreneurs * Loans between $500 to $138,000, averaging $18,300. * Clients are counseled throughout the loan process * Loan apps are reviewed/approved/declined by a Loan Committee * Committee consists of LTBB members, local bankers, and business owners * Approved loan clients are required to meet with NSLF either monthly or quarterly throughout the life of the loan.

DEVELOPMENT SERVICES NSLF partners with several local organizations to help our clients in all stages of development from start-up to expansion. Waganakising Odawa Career and Techical Education Program (WOCTEP) North Central Michigan College (NCMC) Senior Core of Retired Executives (SCORE) Michigan Works Small Business Technology & Credit Development Center (SBTDC) Counseling Northern Lakes Economic Alliance (NLEA) Northern Initiatives (NI)

Success Stories TRILLIUM SALON Our First Loan A minority owned, established, 9 year old business NSLF provided the loan to switch their product line to Aveda products in March of 2009 Results: With this loan their retail revenue is up $6900 over the same period last year, averaging $1150 more a month. Service revenue is up 4% Due to retail and service revenue increase, owner can now pay herself a salary Loan has allowed for continued staffing of 8 full-time and 1 part-time

TANNERY CREEK MEAT MARKET Owner is a Sault Ste. Marie Tribe member Results: Experienced sales revenue increase of 11% within first year of loan. Ability to carry more product and add produce which has increased their customer base by 1000. Increase in customers, and revenue has allowed them to retain their full-time staff of 7, 4 part-time and add 2 part-time staff. Loan funds provided to purchase two large open face freezers, glass display case, and outside greenhouse to expand client base for 5 year old established business

ROSETTA S COTTAGE INTERIORS LTBB member owned Start-up, home-based business designing and making interior home accessories NSLF provided the loan for equipment and inventory Results Business is now incorporated under LTBB Attended NSLF designated WOCTEP classes Provided funding for design and establishment of website for nationwide marketing Creation of inventory for display and sale on website, at shows throughout country, and at LTBB Casino showcasing tribal entrepreneurs.

NORTH SHORE LAWN WORKS LTBB Member Owned Start-Up Business; Prior Employee Purchased Existing Local Business Results: Doubled client base in first year of ownership. NSLF provided the loan for the purchase of a truck to pull trailer and haul equipment Established credit, creating ability to purchase additional new equipment at lower interest rate and negotiate purchase price and financing. Utilized NCMC certificate program project with WOCTEP to receive logo development and production at no charge

Lah Lah s Preloved Clothing Boutique LTBB Member Owned Start-Up Business NSLF provided funding for purchase of inventory, lease hold improvements, equipment and working capital. Results: Created jobs for owner, two daughters and niece. Provided alternative industry non-existent in area. Provides income to family when husband diagnosed with cancer and household income could have been affected.

Diamond Performance and Machine Owner is Son of LTBB Member Established Business Results: NSLF provided funding for equipment purchases and leasehold improvements Allowed owner to take garage business to storefront location. Assisted in meeting unmet demand in area for this service through expansion of business. Business experienced $50k revenues in first quarter of operations.