BACKING THE BUSINESS OF RURAL AMERICA BACKING THE BUSINESS OF RURAL AMERICA PANDOR H. HADJY, DEPUTY...
Transcript of BACKING THE BUSINESS OF RURAL AMERICA BACKING THE BUSINESS OF RURAL AMERICA PANDOR H. HADJY, DEPUTY...
BACKING THE BACKING THE BUSINESS OF BUSINESS OF
RURAL RURAL AMERICAAMERICA
PANDOR H. HADJY, DEPUTY ADMINISTRATORPANDOR H. HADJY, DEPUTY ADMINISTRATORBUSINESS PROGRAMSBUSINESS PROGRAMS
1. Putting Money in the Hands of 1. Putting Money in the Hands of Rural Business OwnersRural Business Owners
B&I AccomplishmentsB&I AccomplishmentsFY 2009FY 2009
Number of loansNumber of loansDollars ObligatedDollars ObligatedJobs Created/SavedJobs Created/SavedBusinesses AssistedBusinesses AssistedApps and pre-apps pendingApps and pre-apps pendingDollars pendingDollars pendingPortfolio - # of BorrowersPortfolio - # of BorrowersPortfolio – Loan AmountPortfolio – Loan Amount
506506$1,244,618,158$1,244,618,15821,29621,296552552190190$680,889,331$680,889,3312,2992,299$5,401,994,463$5,401,994,463
Putting Money in the Hands of Rural Business Owners
B&I Quarterly Loan ObligationsB&I Quarterly Loan Obligations
$0$100,000,000$200,000,000$300,000,000$400,000,000$500,000,000$600,000,000$700,000,000$800,000,000
Dec-06
Mar-07
Jun
-07
Sep-07
Dec-07
Mar-08
Jun
-08
Sep-08
Dec-08
Mar-09
Jun
-09
Sep-09
Dec-09
Putting Money in the Hands of Rural Business Owners
$3 billion in lending support
FY 2010 PROGRAM LEVELSFY 2010 PROGRAM LEVELSBusiness and Industry GuaranteedBusiness and Industry GuaranteedBusiness and Industry Guaranteed – ARRABusiness and Industry Guaranteed – ARRARural Business Enterprise GrantsRural Business Enterprise GrantsIntermediary Relending ProgramIntermediary Relending ProgramRural Economic Development LoansRural Economic Development LoansRural Economic Development GrantsRural Economic Development GrantsRural Energy for America Program – LoansRural Energy for America Program – LoansRural Energy for America Program – GrantsRural Energy for America Program – GrantsBiorefinery Assistance ProgramBiorefinery Assistance ProgramRepowering Assistance ProgramRepowering Assistance ProgramPayments to Eligible Advanced Biofuel Payments to Eligible Advanced Biofuel ProducersProducers
$$ 993,001,876993,001,876$ 1,523,298,274$ 1,523,298,274$$ 41,956,000 41,956,000$$ 33,536,000 33,536,000$$ 33.077.000 33.077.000$$ 10,000,000 10,000,000$$ 264,372,580264,372,580$$ 63,279,580 63,279,580$ 803,476,177$ 803,476,177$$ 35,000,000 35,000,000$$ 80,000,000 80,000,000
Putting money in the Hands of Rural Business Owners
Guaranteed RenewableGuaranteed Renewable Energy ProgramsEnergy Programs
Section 9003 - Biorefinery Assistance ProgramSection 9003 - Biorefinery Assistance Program– Awarded $159.5 million for 3 advanced Awarded $159.5 million for 3 advanced
biorefinery loan guaranteesbiorefinery loan guarantees
Section 9007 -- Rural Energy for America Program Section 9007 -- Rural Energy for America Program (REAP): Loan guarantees of up to $25 million(REAP): Loan guarantees of up to $25 million
Putting money in the Hands of Rural Business OwnersPutting money in the Hands of Rural Business Owners
Renewable Energy Investments, 2003 - 09 Renewable Energy Investments, 2003 - 09 Renewable Energy Systems and Energy Efficiency Renewable Energy Systems and Energy Efficiency
Conversion ProjectsConversion Projects
Technology
Number of Projects
Grants, Loans, & Combos Amount
Amount Leveraged
Biomass 320 89,993,200 380,365,833
Wind 361 73,651,189 641,098,744
Solar 274 14,077,343 37,930,249Geothermal 99 3,080,395 8,374,339
Hybrid 22 2,935,648 86,720,575Hydropower 4 1,064,432 2,475,253
Subtotal 1,080 184,802,207 1,156,964,993
Energy Efficiency 2,428 80,566,465 192,211,677
EA/REDA 22 2,173,631
Feasibility Study 50
1,244,600
Combined Funding Activities 3,580 268,786,903 1,349,176,670
Putting money in the Hands of Rural Business OwnersPutting money in the Hands of Rural Business Owners
ARRA – B&IARRA – B&IRecovery Act Goals:Recovery Act Goals:
Create and Save JobsCreate and Save JobsSpur Economic ActivitySpur Economic ActivityLong-term Economic GrowthLong-term Economic GrowthAccountability and TransparencyAccountability and Transparency
Putting money in the Hands of Rural Business OwnersPutting money in the Hands of Rural Business Owners
ARRA B&IARRA B&I90% Guarantee up to $10 million90% Guarantee up to $10 million
1% Guarantee Fee1% Guarantee Fee
No Annual Renewal FeeNo Annual Renewal Fee
55 points = 90% Guarantee– 20 discretionary priority points if borrower
provides quality jobs and at least 1 of the 4 demographic criteria
Putting money in the Hands of Rural Business OwnersPutting money in the Hands of Rural Business Owners
ARRA B&I StatusARRA B&I Status203 projects approved for 203 projects approved for $695,086,036 or 46% of ARRA B&I $695,086,036 or 46% of ARRA B&I funds availablefunds available
Our goal is to spend 70% of ARRA Our goal is to spend 70% of ARRA funds by April 16, 2010funds by April 16, 2010
Putting money in the Hands of Rural Business OwnersPutting money in the Hands of Rural Business Owners
#2. Access to Loans for Rural Business #2. Access to Loans for Rural Business OwnersOwners
Access to LoansAccess to Loans
1,172 1,192 1,2561,418
0
450
900
1,350
1,800
FY 2007 FY 2008 FY 2009 FY 2010 YTD
Lenders in B&I Guaranteed Loan Program
Top 10 B&I Lenders in FY 2009Top 10 B&I Lenders in FY 2009$53,202,000 $53,202,000 $41,628,100 $41,628,100 $33,945,000 $33,945,000 $29,022,100 $29,022,100 $25,054,500 $25,054,500 $25,046,832 $25,046,832 $24,579,193 $24,579,193 $22,713,000 $22,713,000 $21,510,000 $21,510,000 $20,270,000 $20,270,000
RIDGESTONE BANKRIDGESTONE BANKEXCEL NATIONAL BANKEXCEL NATIONAL BANKBORREGO SPRINGS BANKBORREGO SPRINGS BANKCOMMUNITY SOUTH BANKCOMMUNITY SOUTH BANKAMERICAN TRUST & SAVINGS BANKAMERICAN TRUST & SAVINGS BANKAMERICAN BANK OF ST. PAULAMERICAN BANK OF ST. PAULHIGH TRUST BANKHIGH TRUST BANKPLAINS STATE BANKPLAINS STATE BANKBANK OF THE WESTBANK OF THE WESTBUSINESS CAROLINA, INCBUSINESS CAROLINA, INC
Access to LoansAccess to Loans
Summary of B&I Lender CaseloadsSummary of B&I Lender Caseloads
Number of LoansNumber of Loans Number of LendersNumber of Lenders
0101 878878
0202 278278
03 – 0503 – 05 189189
06 – 1006 – 10 4343
11 – 2011 – 20 1717
21 – 5021 – 50 1212
51 - 10051 - 100 11
Total:Total: 1,4181,418
Access to LoansAccess to Loans
Rural Development State Offices
Access to LoansAccess to Loans
Top 10 B&I Lenders
Access to LoansAccess to Loans
Active B&I Lenders in the Continental United States
Access to LoansAccess to Loans
Secondary MarketSecondary Market
Access to LoansAccess to Loans
Loans Sold on the Secondary Loans Sold on the Secondary Market Yield:Market Yield:
A premium when the loan is soldA premium when the loan is soldServicing fees for lendersServicing fees for lendersThe opportunity for entrepreneurs to invest in The opportunity for entrepreneurs to invest in rural Americarural AmericaNew partners (and capital) being brought to New partners (and capital) being brought to Rural AmericaRural AmericaA chance to play a part in the revitalization of A chance to play a part in the revitalization of depressed rural areasdepressed rural areas
Access to LoansAccess to Loans
#3. Listening to Lenders#3. Listening to Lenders
Report Card:Report Card:
Listening to Lenders
Difficulties With ProgramDifficulties With Program
Listening to Lenders
Lender Survey PlusesLender Survey PlusesKnowledgeable EmployeesKnowledgeable EmployeesLong Term LoansLong Term LoansBetter RatesBetter RatesPre-approval processPre-approval processLarger LoansLarger LoansMore flexibilityMore flexibilityStreamlined ProcessStreamlined Process
Listening to Lenders
Lender Survey MinusesLender Survey Minuses
- - TimeTime- - Difficulty with Construction LoansDifficulty with Construction Loans- - Environmental AssessmentsEnvironmental Assessments- - Vague RegulationsVague Regulations-- Lack of Consistency Lack of Consistency
Listening to Lenders
Program GoalsProgram GoalsProgram GoalsProgram GoalsEnhance Lender ProfitsEnhance Lender ProfitsIncrease Commercial Credit in Rural AreasIncrease Commercial Credit in Rural AreasRural EmploymentRural EmploymentHelping BusinessHelping BusinessStimulating the EconomyStimulating the Economy““Sustainable Economic Development”Sustainable Economic Development”
““Give a man a fish; you have fed him for today. Teach a man to fish; and Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime”—Author unknown you have fed him for a lifetime”—Author unknown
Listening to Lenders
#4. Honoring our Commitment to #4. Honoring our Commitment to Customer Service Customer Service
Reinvigorating our ProgramsReinvigorating our Programs
Initiatives for FY 2010Initiatives for FY 2010
The RBS 2010 initiatives involve The RBS 2010 initiatives involve Change!Change!
–Lenders and AssociationsLenders and Associations–EmployeesEmployees–ProgramsPrograms
Reinvigorating our ProgramsReinvigorating our Programs
Lender Requested Program Changes Lender Requested Program Changes
Improve ConsistencyImprove Consistency– Percent of GuaranteePercent of Guarantee– Issuing Guarantee Prior to ConstructionIssuing Guarantee Prior to Construction– Interim Construction FinancingInterim Construction Financing
Lender AdvocateLender Advocate
Reinvigorating our ProgramsReinvigorating our Programs
Initiatives for FY 2010Initiatives for FY 2010
Created Business Created Business Programs Advisory Programs Advisory TeamsTeams– State and Field Office State and Field Office
Employee Employee EmpowermentEmpowerment
– Investment in our StaffInvestment in our StaffStaff TrainingStaff TrainingHiring StaffHiring Staff
Reinvigorating our ProgramsReinvigorating our Programs
Reinvigorating our ProgramsReinvigorating our Programs
Business Programs Regions
Difficulties With ProgramDifficulties With Program
Honoring our Commitment to Customer Service
Initiatives for FY 2010Initiatives for FY 2010
Increase PartnershipsIncrease Partnerships
Lender Meetings/ForumsLender Meetings/Forums
Continuous Customer FeedbackContinuous Customer Feedback
Reinvigorating our ProgramsReinvigorating our Programs
Initiatives for FY 2010Initiatives for FY 2010
Administrative Program Administrative Program EnhancementsEnhancements
Long Term Program ChangesLong Term Program Changes
Reinvigorating our ProgramsReinvigorating our Programs
Lender Requested Program ChangesLender Requested Program Changes
B&I program enhancementsB&I program enhancements
Best Practices of other Government Best Practices of other Government
Guaranteed ProgramsGuaranteed Programs
Program ConsistencyProgram Consistency
Reinvigorating our ProgramsReinvigorating our Programs
Initiatives for FY 2010Initiatives for FY 2010
B&I program enhancements B&I program enhancements – Debt RefinancingDebt Refinancing– Lines of CreditLines of Credit– Preferred Lender ProgramPreferred Lender Program– Protective AdvancesProtective Advances– Secondary Market ImprovementsSecondary Market Improvements
Reinvigorating our ProgramsReinvigorating our Programs
Continuous Process ImprovementContinuous Process Improvement
Lender
Program
Employees
Reinvigorating our ProgramsReinvigorating our Programs
No One Can Sit On The Sidelines!No One Can Sit On The Sidelines!
Reinvigorating our ProgramsReinvigorating our Programs
Serving as the Advocate for Serving as the Advocate for Rural BusinessRural Business
GoalsGoalsImprove:Improve:– Customer serviceCustomer service
– Response timesResponse times
– Consistency by the statesConsistency by the states
– More authorities at the lowest levelMore authorities at the lowest level
– Timely Loss PaymentsTimely Loss Payments
Serving as the Advocate for Rural BusinessServing as the Advocate for Rural Business
RBS ARRA GoalsRBS ARRA Goals
JOBS, JOBS, JOBSJOBS, JOBS, JOBSRecord Program DeliveryRecord Program DeliveryService to Communities of Greatest NeedService to Communities of Greatest NeedBusiness Process ImprovementsBusiness Process ImprovementsMarketing ImprovementsMarketing ImprovementsLender Community ConfidenceLender Community Confidence
Serving as the Advocate for Rural BusinessServing as the Advocate for Rural Business
Success StoriesSuccess Stories
SummarySummary
1.1. Listening to LendersListening to Lenders2.2. Honoring our Commitment Honoring our Commitment
to Customer Serviceto Customer Service3.3. Putting money in the Hands Putting money in the Hands
of Rural Business Ownersof Rural Business Owners4.4. Access to Loans for Rural Access to Loans for Rural
Business OwnersBusiness Owners5.5. Serving as the Advocate for Serving as the Advocate for
Rural BusinessRural Business