Oakland County
Small Business
Financing Forum
January 18, 2023
Presentation
to
11/16/2022
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Overview
Empowering individuals to build personal wealth
Providing short term consumer loans
Creating, preserving and improving access to affordable housing
Leading Flint & Genesee County’s efforts to combat homelessness
Promoting small business development
Established in 1992, Metro Community Development is a nonprofit focused on
Financial counseling
Homebuyer readiness training
Providing access to capital and technical expertise
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What is a Community Development Financial Institution (CDFI)?
CDFIs are lenders with a mission to provide fair, responsible financing to
economically distressed communities that mainstream finance doesn’t
traditionally reach
o Lending to small businesses, individuals, and non-profit organizations
✓ Offering competitive loans to increase economic potential and help build wealth
o Offering clients financial education and technical assistance to business owners
o Focus on low-and moderate-income (LMI) individuals
Where others see risk, we see opportunities
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37 CDFIs
in Michigan
Four types of institutions
o CD banks
o CD credit unions
o CD loan funds (nonprofits)
o CD venture capital funds
Depository
Institutions
CDFI Name CDFI Type City
Allegan Community Federal Credit Union Credit Union Allegan
Alpena Community Credit Union Credit Union Alpena
University of Michigan Credit Union Credit Union Ann Arbor
OMNI Community Credit Union Credit Union Battle Creek
Southwest MI Community Development Corp. Loan Fund Battle Creek
Lake Trust Credit Union Credit Union Brighton
ELGA Credit Union Credit Union Burton
Straits Area Federal Credit Union Credit Union Cheboygan
Detroit Development Fund Loan Fund Detroit
First Independence Bank Bank or Thrift Detroit
Invest Detroit Foundation Loan Fund Detroit
One Detroit Credit Union Credit Union Detroit
Chi Ishobak, Inc. Loan Fund Dowagiac
Credit Union ONE Credit Union Ferndale
Metro Community Development, Inc. Loan Fund Flint
Frankenmuth Credit Union Credit Union Frankenmuth
Security Credit Union Credit Union Grand Blanc
Grand Rapids Opportunities for Women Loan Fund Grand Rapids
Northern Shores Community Development Loan Fund Harbor Springs
Community Promise FCU Credit Union Kalamazoo
Kalamazoo Neighborhood Housing Services, Inc.Loan Fund Kalamazoo
Lake Superior Community Development Corp. Loan Fund L'Anse
CASE Credit Union Credit Union Lansing
Michigan Community Capital Loan Fund Lansing
Opportunity Resource Fund Loan Fund Lansing
Michigan First Credit Union Credit Union Lathrup Village
Great Lakes Women’s Business Council
Loan Fund Livonia
Zeal CU Credit Union Livonia
Northern Great Lakes Initiatives Loan Fund Marquette
Muskegon Co-op Federal Credit Union Credit Union Muskegon
Awakon Federal Credit Union Credit Union Onaway
Advia Credit Union Credit Union Parchment
Public Service Credit Union Credit Union Romulus
Lake Huron Credit Union Credit Union Saginaw
Chippewa County Credit Union Credit Union Sault Ste Marie
Venture North Funding & Development Loan Fund Traverse City
Wayne Westland Federal Credit Union Credit Union Westland
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Our Partners
• CDFI registration with U.S. Treasury
• U.S. Small Business Administration (SBA) lender
• Member of Federal Home Loan Bank of Indianapolis
• Member of NeighborWorks America
• Michigan Economic Development Corporation Strategic Fund
• Huntington Bank – Enterprise Fund
• Comerica Bank – Equity Equivalent Investment (EQ2)
• Wells Fargo – COVID Impact Loans
• Michigan State Housing Development Authority – Approved Mortgage Lender
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Community Impact – Small Businesses
• $6M loaned to small businesses over the past 4 years
• 2022 FY Loan Production – Over $2M
o Supported 34 businesses
o 53% of loans served minority clients
o Nearly half of our clients are outside of Genesee County
• Current Loan Portfolio – $4 M
o 73 loans
o Average loan: $72K (original principal balances)
o Average interest rate: 6.6%
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Number of loans originated in Michigan
cities
47% of total loan volume made outside of Genesee County
Genesee County
14 Cities / 11 Counties
2022 FY
Loan
Production
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• SBA Microloans - 13 county region
o Genesee, Oakland, Macomb, Lapeer, Saginaw, St. Clair, Shiawassee, Livingston, Huron,
Midland, Bay, Sanilac, Tuscola
• Loans up to $50,000 and up to 5 years for small businesses
• Loans can be used for:
o Real estate acquisition, construction, or rehab
o Equipment and furniture
o Inventory, supplies, and raw materials
o Debt refinancing or consolidation
o Business acquisition
o Working capital
• SBA Community Advantage Loans
o Loans of up to $350,000
o Term: 10 years for working capital / up to 25 years for fixed assets
How loan decisions are made
• Positioning your business to apply for a
loan, whether it’s to start or grow, requires
strategic planning.
• We look at the big picture and how each
financial move you make, personally and
professionally, is essential to achieve your
goals.
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Financial Condition
• Before you apply, review your records
❑ Personal & Business bank statements
❑ Profit & Loss statements
❑ Balance sheets
❑ Financial Projections
• Look for opportunities to improve your cash positions so
your lender can see you are working toward your goals
• Show a capacity to repay the loan with stable and consistent
revenue
Your loan officer will conduct a thorough review of your financials;
business and personal
Business Development
BizBOX
®
and Pre-Technical Assistance
• Training and pre-technical assistance designed to help entrepreneurs start a
business and maintain their success during the first two years of operation
✓ 8 on-line training modules
➢ e.g., business plans, marketing plans, financial projections, cash flows
✓Enrolled 159 clients in 2022
✓932 hours of support provided to businesses last year
Post-Technical Assistance
• Personalized technical assistance to support you as you grow your
business
• Reduced cost QuickBooks and ongoing training and support
• Networking opportunities
• Assistance in finding needed service providers like marketing,
advertising, legal, financial, insurance, and more!
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Community Impact – Client Profiles
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