Post on 14-Jan-2017
transcript
Michael AbbateCommon Capital
Chief Operating Officer
About Common Capital
• OfficelocatedinHolyoke• Foundedin1990• WeareaU.S.TreasuryCertifiedDevelopmentFinancialInstitutionandSmallBusinessAdministrationMicro-lender
• ServiceareaisWesternMassachusetts• Full-timestaffof6
FINANCIN
G
BUSIN
ESSA
SSISTANCE
PARTNERSH
IP
TRANSFORM LIVES
STRENGTHENTHELOCALECONOMY
IMPACT
Community and Economic Impact• Improvelivesandprovideeconomicopportunity
• Essentialcommunityservices• Rejuvenateneighborhoods• Createandretainqualityjobs• Environmentalsustainability• Localinvestment- recirculatedollarslocally,localownership,builttolast/stay
Lending• Makebusinessloansupto$300,000• WeareanSBA– 7(a)CommunityAdvantageLoanGuaranteeLender
• Themajorityofourfundingcomesfromthefederalgovernment
• SomespecializedprogramsuchasHealthyFoodFinancingtoprovidefreshfoodretailoutletsinunderservedareas
Types of Lending• 90%ofourloansaretofinancebusinesses• Weareanunregulatedlender• Establishedbusinesses60%/Start-ups40%• MostlyTermloanswithflexiblerepayment• Linesofcreditofferedincertaininstances• Somenon-profitlending– specialcommunityprojects,equipment,facilities
Loan Process• Riskbasedinterestrates– prime+2-6%• Flexiblecollateralandpersonalguaranteeterms
• $100non-refundableapplicationfee,1-3%commitmentfee,closingcosts.
• Upto10yearterms
FinancingNeeds• WorkingCapital• Accountsreceivableandinventory• Equipment&infrastructurepurchaseorimprovement• Debtrefinancingtoimprovecashflow• Purchaseofanexistingbusiness• Start-uporexpansioncosts• Realestateorbuildingrenovationtobenefitabusinessoperation.
Partnerships• LocalBanks• Otherbusinessdevelopmentorganizations• PVGrows– Farmandfoodsysteminfrastructureloans- $1000- $250,000
• SamAdamsBrewingtheAmericanDream– Food,beverage,hospitalitybusinesses
BusinessAdvisoryServices
• Criticaltothesuccessofourclients• Individualizedbusinessadvisoryservicesforborrowersatnocost• Providersincludeourin-housestaffandavettedrosterofconsultants
RiverValleyMarket(Co-op)• Annualsalesof$23million• Localpurchasesof$4.2million• 7,500Co-opmembers• 145Jobs,90%Full-time• HigherwagesthanMAretailaverages• 80%ofwasterecycledorcomposted
EnvironmentalIntegrity- Holyoke
EnvironmentalIntegrity- Holyoke
• Createdover30FTEjobs• Recyclesoutdatedelectronicequipment• Keepswasteoutoflandfills• Reducesneedtominerawmaterials• Locatedinacommunityinneedofjobs
RealPickles- Greenfield
RealPickles- Greenfield• Convertedtoaworker-ownedcoopin2013• Doubledigitgrowthsince2001• 90%ofveggiepurchasesfromPioneerValley• ProductsoldthroughoutgreaterNEregion• Havewonnumerousnationalfoodawards• 95%offoodwasteiscomposted• Solarpanelssupply80%oftheirpower
CommunityFirstFundAnopportunityforindividualsandbusinessesto
investinthelocaleconomy
• AloanismadetoCommonCapitalrangingfrom$500- $50,000
• 3yearloanterm/2%interest/renewaloption• FundsgointotheCommonCapitalgeneralloanpoolnottiedtoanyspecificloan
• Createslocalsupportforlocalbusinessesandcommunityprojects
IMPACTL O C A L I N V E S T M E N T § S H A R E D F U T U R E