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