Craft3

A Community Development Financial Institution (CDFI)

A nonprofit and charitable corporation Not a bank or credit union and does not take or insure deposits

21 years old

A regional institution serving a diverse, two-state investment area 50 people with their feet on the ground in rural and urban communities

Focused on three bottom lines

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Economic

Ecological

Family

Craft3NonProfit Corporation

Total Assets: $103 Million

100% Owned Subsidiary

Craft3 Future Energy FundNot for Profit Corporation

Forecast Assets: $60 Million

0.1% Owned (Managed)

Twelve Limited Liability Corporations

Craft3 LLC I-XII Total Assets: $69 Million

Multiple Business Units Make Up a Single Craft3

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100% Owned Subsidiary

Craft3 Capital CorporationFor Profit Corporation

Forecast Assets: $65 Million

Craft3 Delivers

Loan capital to businesses, families, American Indian Tribes, government entities and nonprofit organizations

Capital Plus

Brokering relationships, knowledge and networks in and beyond the region

Support to similar organizations with loan servicing and administration, wholesale loans, and advisory services

Long term lending commitments to specific places to support market repair and durable change

Leadership and innovation to CDFIs across the country

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Craft3 Loan Products

Commercial Loans

1. To Businesses for real estate, start-up and expansion;

2. For Community Development projects, health care, childcare, environmental conservation and human services initiatives; and

3. To Conservation Organizations to acquire sensitive lands, restore habitat and protect water quality.

Consumer Loans

1. Energy-Efficiency Loans to property owners to reduce CO2 emissions

2. Clean Water Loans to property owners to repair or replace failing septic systems

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Regional Economic Centers:• The economic hubs of a region functioning

as retail and service centers for a multi-county area and the conduit between urban centers and outlying rural regions.

• Craft3 concentrates investment and locates offices in these places to amplify outcome achievement

Craft3 Regional Strategies

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Craft3 Loan Portfolio by Sector December 31, 2014

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Craft3 Outcomes

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Craft3 Business LoanKhan Machine Tools

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Mohammad Khan is owner of Khan Machine Tools, a manufacturer of precision machine parts. Founded in 1982, Khan Machine distinguishes itself through its high quality standards of less than .01% defect rate. The company can accommodate prototype production, along with short to long production runs and assembly work.

When Mohammad needed to replace two old compressors, he contacted Craft3 for an Energy Efficiency Loan for Small Business. Craft3’s loan allowed Khan to replace both old compressors with a quiet, energy efficient model. The new compressor saves Mohammad 13,941 KwH in energy costs annually.

This loan was made possible through a Program Related Investment from Banc of America CDC.

Resilience Impact Measures

Economic Resilience• Minority-owned business• 12 jobs created or retained• $8,624 of investment leveraged• $205,500 in manufacturing businessEcological Resilience• BTUs of energy conserved

Craft3 Community Development LoanCowlitz Family Health Center

Cowlitz Family Health Center (CFHC) is a nonprofit community health center. It has offered primary medical care, family planning, nutrition education, and dental services for uninsured and under-served families for over 30 years.

A community-needs assessment identified a shortage of health and homeless care services in Kelso. Morbidity and mortality rates for chronic health conditions are high. Childhood immunization rates are low and access to dental care is a significant problem. In response, CFHC built a Kelso facility that offers primary medical care, behavioral health, case management and outreach services. The clinic is close to homeless service providers and is centrally located along several bus lines.

Cowlitz Family Health Center contacted Craft3 for financing. Craft provided a loan for tenant improvements, equipment, furnishings, and working capital.

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Resilience Impact Measures

Economic Resilience• $650,000 of investment leveragedFamily Resilience • 12 jobs created in a high poverty area• Organization serving low-income people• 6,000 community service slots

projected

Craft3 Conservation LoanJefferson Land Trust

Since her early farming days, Karyn Williams has developed a true passion for production farming. After years of leasing land, she decided it was time to purchase her own and began her search.

At the same time, Jefferson Land Trust (JLT) identified B.G. Brown Trust property as critical to the preservation of farmland and the Chimacum Creek watershed. With a loan from Craft3, JLT purchased 23 acres of the property and started looking for a lessee. They found Karyn.

Karyn started out leasing the land from Jefferson Land Trust in a creative lease to own agreement. She established the Red Dog Farm in 2008 and successfully purchased the land from JLT in 2011.

Red Dog Farm produces organic mixed vegetables, berries, cut flowers, plant starts and hay. Karen’s produce can be found in restaurants and farmers markets throughout the Olympic Peninsula.

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Resilience Impact Measures

Economic Resilience• 1 job created• $217,294 of investment leveragedEcological Resilience• 85,000 gallons of clean water conserved• 23 acres of working landscapesFamily Resilience• $275,000 local ownership of assets

Craft3 Capital CorporationJ.P. Francis & Associates

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J.P. “Pat” Francis owns and operates J.P. Francis & Associates (JPF&A), a mechanical contractor with expertise in plumbing, heating, and air conditioning systems for commercial and industrial buildings. Pat is proud of the company’s reputation for completing projects on time and budget. JP&A has won many awards for reliability, innovation, and performance excellence in mechanical engineering.

After hearing Craft3 President John Berdes speak to the Black Construction Association, Pat contacted Craft3 for a loan. Since receiving his Craft3 loan, J.P. Francis has closed more than $500,000 in contracts and hired two new employees.

Craft3 provided J.P. Francis & Associates with a Small Business Credit Initiative loan to finance accounts receivable and retire maturing bank lines of credit.

Resilience Impact Measures

Economic Resilience• Minority-owned business• 19 jobs created or retained• $644,070 of investment leveragedFamily Resilience• $1,425,500 of local ownership of assets

Learn more about Craft3

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Joan Broughton

SVP and Lending Team Manager

jbroughton@craft3.org

206-447-92260 ext. 116

Online

www.Craft3.org

www.Craft3.org/About/Videos

www.Facebook.com/Craft3org | www.Twitter.com/Craft3org

Telephone

General Assistance: 888-231-2170