CDFI Connect Community Discussions

Subscribe to CDFI Connect Community Discussions feed CDFI Connect Community Discussions
View RSS Feed from Opportunity Finance Network
Updated: 9 min 46 sec ago

RE: Please distribute to CEOs/EDs and Development Staff

Fri, 2020-02-28 13:31
From : Communities>>Open Forum
Thank you for sharing this and for your commitment to the industry... ------------------------------ David Scheck Principal Juniper Creek Partners, LLC ------------------------------

RE: Default Rates - Startups vs. Existing Businesses

Fri, 2020-02-28 12:17
From : Communities>>Open Forum
I am interested in this topic too. I started looking at this for our last fiscal year at the request of a funder for a report and as part of exploring our overall data tracking. We capture business age information at the time of application, but we have not implemented related data points across all systems. I can tell you that the businesses we have made loans to in the start-up phase currently appear to have a comparable repayment success than those who came to us as existing businesses but I am [More]

RE: Please distribute to CEOs/EDs and Development Staff

Fri, 2020-02-28 09:50
From : Communities>>Open Forum
Thanks, Jason- this is very helpful! ------------------------------ [Laura] [Buxbaum] [SVP, Public Policy and Resource Development] [CEI] [Brunswick] [ME] [(207)509-5873] ------------------------------

Please distribute to CEOs/EDs and Development Staff

Thu, 2020-02-27 23:33
From : Communities>>Open Forum
Dear Colleagues - I handed the attached document out today at the CDFI Coalition Institute in D.C.  Please pass it along to senior staff, especially if you have already started on your CDFI Fund FA application.  Thanks. ------------------------------ Jason Friedman Principal Friedman Associates (319) 341-3556 jasonj@friedmanassociates.net www.friedmanassociates.net ------------------------------

Files Attached Document
Please distribute to CEOs/EDs and Development Staff

Small Mortgages Underwriting Policies

Thu, 2020-02-27 15:45
From : Communities>>Open Forum
Hello Friends,  We are a small business lender operating statewide in Nebraska. We are working to add small mortgage loans. I am writing to ask if any folks with similar products are willing to share policies to inform our own policy development. We are looking at three direct to homeowner loans:  (1) Small mortgages (e.g. mortgages under $80,000)  (2) Owner occupied rehab loans (especially filling gaps left by state and federal rehab programs)  (3) Emergency repair loans (smaller and faster than [More]

RE: Default Rates - Startups vs. Existing Businesses

Thu, 2020-02-27 13:48
From : Communities>>Open Forum
Thanks for your response.  We have dollar amount and terms limits too.  Up to $50,000 (and up to 7 years) for startups.  Up to $150,000 (and up to 10 years) for existing businesses.  I think we've covered our bases.  However, this new loan committee member is looking strictly at the % of startups in the entire portfolio.  And I do not believe that's a valid measure of portfolio risk.  Now I just have to prove that.  ~Bonnie ------------------------------ Bonnie Crockett Director of Small Business [More]

RE: Default Rates - Startups vs. Existing Businesses

Thu, 2020-02-27 13:42
From : Communities>>Open Forum
Thanks for your response.  We do have good loan software and can easily look at our own default rates, but while our parent company has been making construction/development loans for 30 years, we have only been making small business loans for two years.  We have no defaults as yet.  Also, we do have restrictions in place based on industry.  We will not lend more than 25% of our portfolio to any one industry.  (And, of course, the industry that continuously needs to be monitored in that regard is [More]

RE: Default Rates - Startups vs. Existing Businesses

Thu, 2020-02-27 11:36
From : Communities>>Open Forum
As a consultant for a software supplier and having worked in and been connected to organizations similar to your, the question is certainly valid. Any Developmental Lender faces the risk/reward dilemma when presenting cases to nervous Committee and Board Members. Your loan software should be able to easily filter into your arrears and/or losses and identify where they began from loan purpose. As a qualifier, being able to produce the results may provide comfort to you and them about where your lending [More]

RE: Default Rates - Startups vs. Existing Businesses

Thu, 2020-02-27 11:32
From : Communities>>Open Forum
Thanks for your response.  We do have specific underwriting guidelines, including global debt service analyses, and a detailed Loan Policies & Procedures Manual.  To date, we have not used a risk rating system, (we do not take collateral and we have a fixed interest rate), but I have proposed adopting one in an effort to address the startup question.  However, I am concerned that they see "startup," and they see high risk before looking at anything else.  I believe they are basing their concerns [More]

RE: Default Rates - Startups vs. Existing Businesses

Thu, 2020-02-27 11:24
From : Communities>>Open Forum
We lend to startups. As others have said, we underwrite on a household global cash flow basis. We also have lower maximum loan sizes and shorter maximum terms for startups than for established businesses. Maximum loan size and maximum loan term are both tied to a credit tier as well. So while a top tier credit existing business can qualify for up to $250,000 and up to 180 months, a top tier credit startup can only qualify for a max of $150,000 and 120 months. And so on. -- Brian Depew | Executive [More]

RE: Default Rates - Startups vs. Existing Businesses

Thu, 2020-02-27 10:16
From : Communities>>Open Forum
We do.  I will check it out.  However, our Small Business Development Centers work almost exclusively with startups, and they do not make loans, so I don't know if they would be tracking this information.  It's worth asking.  Thanks. ~Bonnie ------------------------------ Bonnie Crockett Director of Small Business Lending Baltimore Community Lending, Inc. Baltimore MD (410) 727-8590 ------------------------------

RE: Default Rates - Startups vs. Existing Businesses

Thu, 2020-02-27 10:14
From : Communities>>Open Forum
Thank you for your response.  If I am able to come up with some definitive information, I would be happy to share with the group. ~Bonnie ------------------------------ Bonnie Crockett Director of Small Business Lending Baltimore Community Lending, Inc. Baltimore MD (410) 727-8590 ------------------------------

RE: Default Rates - Startups vs. Existing Businesses

Wed, 2020-02-26 11:49
From : Communities>>Open Forum
Do you have a local Small Business Development Center? The entity may track data on this topic. Kind regards, Cindy L. Mittlestadt BBDF Manager Bristol Bay Native Corporation Direct: (907) 265-7865 Cell: (907) 301-0504 In- Region Cell: (907) 469-1716

RE: Default Rates - Startups vs. Existing Businesses

Wed, 2020-02-26 10:21
From : Communities>>Open Forum
Hi Bonnie - this a great question because it gets to the heart of the mission of what it means to be a CDFI.  However, it's not possible to answer it without looking at your underwriting grid.  In our experience, loan review committee members get 'antsy' when there is a lack of clarity about underwriting policies. As you know, credit is only one variable in a solid underwriting matrix.  Do you look at Global Debt Service Coverage? Of our clients that have a core focus on providing microloans, they [More]

RE: Default Rates - Startups vs. Existing Businesses

Wed, 2020-02-26 10:20
From : Communities>>Open Forum
Hi Bonnie,  This is a GREAT question! Thanks for posting. Unfortunately our organization hasn't tracked this data historically (not from lack of desire, but more so because of lack of capacity), but we are now beginning to orient our operations around capturing this information. It's great to know that other organizations are out here looking at this issue as well.   Here at Wacif, (in general) we tend to shy away from giving loans to start-ups just because of the lack of track record...that being [More]

Live: CDFIs briefed on major changes to the CDFI Fund NOFA

Wed, 2020-02-26 06:41
From : Communities>>Open Forum
Dear Colleagues - click here  to learn about the changes to this year's NOFA and how it may impact your eligibility. We also demo a tool to help you improve the competitiveness of your application.  Good luck! ------------------------------ Jason Friedman CEO Friedman Associates (319) 341-3556 jasonj@friedmanassociates.net www.friedmanassociates.net ------------------------------

Default Rates - Startups vs. Existing Businesses

Tue, 2020-02-25 11:58
From : Communities>>Open Forum
Does anyone who does small business micro-lending track default rates based on whether the borrower is a startup or an existing business (i.e., over two years old)? We make micro-loans to startups and existing businesses, ($10,000-$150,000), and I have a Loan Committee member that is antsy about startups. However, in my personal experience, I find that existing businesses that come to us for loans tend to have more credit issues than startups. I am looking for some data to address this issue, [More]

For Immediate Release: Major Change to CDFI Fund NOFA

Mon, 2020-02-24 10:59
From : Communities>>Open Forum
Dear Colleagues - our CDFI Fund Program & Compliance team has discovered a significant change to the CDFI Fund Program NOFA.  This may have implications for your eligibility to apply for a CDFI Fund FY '20 Financial Assistance award.   To get the details, and to see a tool we developed to help you gain a competitive edge, join us for a  webinar  tomorrow at 2:00 pm EST/11:00am PST.  To register, click  here .   Click  here  for a link to a NOFA. We will distribute the document with all the changes [More]

RE: Collect board member social security numbers?

Mon, 2020-02-24 10:23
From : Communities>>Open Forum
I can't speak for all federal government agencies having only worked for two but I can tell you that it's a requirement for several. For example, the SBA Microloan Program requires each board member as well as senior/key staff of the organization to complete and submit SBA Form 1081. Here is a link to that form if you are not familiar with it and want to see the extent of what is asked/required:  https://www.sba.gov/sites/default/files/forms/SBA_FORM_1081.pdf The thought process is that board members [More]

CWN Philadelphia Chapter 3/10/20 Planning Conference Call

Fri, 2020-02-21 11:59
From : Communities>>Open Forum
Calling all Philadelphia area CWN Current & Potential Members! Would you like to help plan the next Greater Philadelphia CWN Chapter Meeting? If you yes, we will be hosting a planning call on Tuesday, March 10th at 11:00 AM. We anticipate holding our next activity in May, and we want it to be value-added for everyone who attends. We need your input to make that happen! Our chapter primarily includes CDFI industry members located in Eastern PA, NJ, and DE. Current members of the chapter helping to [More]

Pages