POWERING DREAMS. TRANSFORMING COMMUNITIES.

ORGANIZATIONAL REPORTAS OF MAY 2015

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INVESTING IN AWESOMESisters Leah and Stephanie Melnik started out packing boxes of Leah’s handmade bars to send to family and friends. In 2013, Awesome Bars hit a growth point, and they were looking for a loan. The sisters weren’t making any progress with bank loans, so they asked Urban Solutions for some help. Urban Solutions put Leah and Stephanie in touch with OBDC. “Working with OBDC was a dream. They understood where we were coming from as a small business and knew that we needed a loan with a fast turn-around time,” Stephanie said. Now, Awesome Bars are selling in coffee shops from Santa Rosa to Los Angeles.

LEAH & STEPHANIE

AWESOME BARS

SAN FRANCISCO

Letter From CEO ........................ 3

Our Mission and Values.............. 4

How We Help .............................. 5

Impact of our Work .................... 6

Oakland Program ....................... 8

San Francisco Program ............... 10

Veterans Program ....................... 12

Our Team .................................... 14

Supporters .................................. 15

TABLE OF CONTENTS

Background photo on cover: Visit Oakland, Joshua Winzeler.

Dear Friends,

OBDC is proud to celebrate 36 years of helping small business owners realize their entrepreneurial dreams. Through the support of our partners, the hard work of our dedicated staff, the leadership of our board, and the commitment of so many talented entrepreneurs, OBDC is making an important difference in people’s lives.

What does economic opportunity look like? It looks like financially sustainable small businesses, higher employment rates, and vitality in commercial corridors. It looks like asset-building for entrepreneurs, increased income and savings in low-to-moderate income communities, and increased access to goods and services. We’re proud to say that we have made 627 loans and originated $41 million in loan capital to Bay Area business owners in the last ten years. We’re honored to support local business owners who are making a positive difference in their communities.

We’re excited to share our impacts with you, along with some of the personal stories of the small business owners we have the pleasure of working with. Throughout this report you will see our core values of opportunity, diversity, empowerment, innovation, and partnership reflected in our work.

As a community-based organization we rely on the support of people like you. Together, we can empower small business owners to succeed, transforming their lives, and helping communities thrive. We invite you to help us in furthering our reach and impact. If you share these values, stay connected by signing up for our newsletter, refer businesses to our services, and most importantly, shop with OBDC-funded businesses.

We appreciate your support and look forward to continuing to build inclusive prosperity in our communities.

Jacob Singer, President & CEO Wendell W. Jones II, Board Chair

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MISSIONOur mission is to create economic opportunity by empowering entrepreneurs. Through innovative partnerships we provide business owners with the capital, education, and relationships that allow them to flourish. Our collaborative approach helps our borrowers create jobs and stimulates economic development in low-to-moderate income communities.

VISIONOur vision is to empower small business owners to succeed, transforming their lives, and helping their communities thrive.

CORE VALUES For the last 36 years, OBDC has embodied core values that guide our strategy, daily work, and relationships with our borrowers, partners, and the community.

OPPORTUNITY DIVERSITY EMPOWERMENT INNOVATION PARTNERSHIP

OPPORTUNITYDIVERSITY

EMPOWERMENTINNOVATION

PARTNERSHIP

OPPORTUNITY DIVERSITY EMPOWERMENT INNOVATION PARTNERSHIP

STRENGTHSWe complement our core values with capabilities that combine to make OBDC uniquely equipped to meet the needs of our communities.

• Expertise

• Commitment

• Capacity

OUR MISSION & VALUES

CHICKEN + WAFFLES = SUCCESSOwner and Chef Tanya Holland received a loan for Brown Sugar Kitchen in 2008. She came back to OBDC in 2011 for support in opening her newest venture, B-Side BBQ. “When the banks and private equity investors would not provide sufficient capital, if any, OBDC took a chance.”

TANYA

BROWN SUGARKITCHEN

OAKLAND

Small businesses bring essential goods and services to our communities, are effective job creators, and help local economies grow. Investment in small businesses creates wealth for the business owner, income for employees, and safety and enhanced livability for the community.

SMALL BUSINESS LOANSWe offer quick, affordable, term loans ranging from $10,000 to $250,000 in Oakland, San Francisco, and to veteran-owned businesses in California.

BUSINESS DEVELOPMENT SERVICESIn addition to lending services, OBDC provides no-cost business development services to help borrowers become loan-ready, operate profitable businesses, and create jobs.

Pre-Loan SupportEach entrepreneur receives one-on-one support from a business development officer during the loan application process, including:

• Understanding borrowing needs

• Advising on financial performance and projections

• Advising on business plan

Post-Loan Support• One-on-one advising with OBDC staff

• Financial performance check-ins

• Workshops and events through OBDC and our community partners

• Newsletters with updates, opportunities, and business management tips

• Free expert advisor through businessadvising.org

• Townsquared’s online social network to connect with local businesses

FastTrac™OBDC’s FastTrac program through the Kauffman Foundation provides business training programs to start or grow successful businesses.

HOW WE HELP

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Our work builds self-sustaining, vibrant, local economies. Small businesses make up the backbone of local economic activity in cities, sustaining communities that depend on high quality local jobs, goods, and services within their neighborhoods. That stability in turn creates a safer and more livable environment for all.

OBDC also works closely with cities on key economic development objectives along community corridors. By empowering people at the local level, entrepreneurs and employees create positive community impact.

These loans supported:

• 188 start-up businesses

• 205 businesses located in low-to-moderate income neighborhoods

• 179 businesses with a low-to-moderate income owner

• 161 women-owned businesses

• 151 minority-owned businesses

With OBDC’s capital, these companies created and sustained more than 2,600 jobs in the last five years.

THE IMPACT OF OUR WORK

Food & Beverage

Professional Services

Retail

Health & Beauty

Arts & Entertainment

Education

Manufacturing

OUR BORROWERSBY INDUSTRY

IN THE L AST 5 YEARS

$23 MILLION 323INTO BUSINESSESOBDC HAS INVESTED

580

580

580

980

880

880

880

80

80

80

13

24

24

1

280

280

80

1

1

101

101

101

101

101

SAN FRANCISCO

BERKELEY

OAKLAND

ALAMEDA

For an interactive map of our borrowers, go toobdc.com/resources/shop-with-our-borrowers

MAP OF OUR BORROWERS

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CHALLENGE IMPACTOakland’s unemployment and poverty rates remain high, despite the region’s economic recovery.

Every year, OBDC-funded businesses in Oakland generate more than 500 new jobs, many filled by low-to-moderate income Oakland residents.

Oakland loses tax revenue and access to essential goods and services when people shop outside of Oakland. Vacant stores depress real estate values and create blight, increasing public safety concerns.

OBDC drives capital into struggling commercial corridors. For example, OBDC accelerated its efforts along the Broadway Corridor, adding 30 businesses in 18 months to the 60 already previously supported, thanks to support from the Citi Foundation.

Access to capital continues to be a challenge for businesspeople of color in Oakland who don’t qualify for bank financing.

OBDC has a distinguished track record of making sure our services and capital are deployed in parity with the communities in which we operate. OBDC has originated 300 loans totaling $26 million over the last 10 years in Oakland. Last fiscal year, 26% of our Oakland loans were to African American borrowers.

OAKLAND’S RENAISSANCE:RESPONDING TO CHALLENGES, MAKING IMPACTS

The common denominator

among the entrepreneurs we see

in Oakland is that they have a

sense of its cultural diversity and

community, and understand the

value, and often the relevance,

of being here.

SCOTT LEWISSenior Vice President –

Oakland Market Manager

OBDC HAS INVESTED

VETERAN-OWNEDBUSINESSESIN

TO

$1.4 MILLION

NEARLY BUSINESSES NATIONWIDE ARE VETERAN-OWNEDIN1 10

NEARLY CREATED/SUSTAINED IN SAN FRANCISCO

14

IN THE L AST 10 YEARS

OBDC HAS

ORIGINATED 300 LOANSIN OAKLAND $26 MILLIONTOTALING

400 JOBS

A TASTE OF JAMAICA IN OAKLAND“With OBDC’s help we opened our restaurant in November 2013, and Kingston 11 achieved a lot of milestones in the first year, including breaking even. Now, our goal is profitability as we try to be the best restaurant in Oakland,” says Nigel Jones. Kingston 11 is truly a part of Oakland, and their business employs 30 people from the community. Nigel notes, “Oakland is a diverse city, and we want our restaurant to reflect the community. From our management team to our customer service approach, we reflect Oakland.” Now, Nigel sees OBDC as a trusted partner: “If we have questions or need advice, I feel 100% confident that I can reach out to Scott and to OBDC. I know the advice I get will be sound and helpful for my business.”

NIGEL & ADRIAN

KINGSTON 11

OAKLAND

LIGHT-UP A START-UPIn the fall of 2012, Max Gunawan designed a light that allows people to have beautiful lighting anywhere. In February 2013, he launched the product on Kickstarter, and Lumio was born; a year later Lumio’s products were selling in the MOMA store in New York City and in high-end design shops across the globe. A financial advisor recommended that Max look into SBA loans for his business. He was nervous about the process, because Max’s design studio was a crowd-funded start-up. “We were an oddball,” Max said, “but the whole process moved really fast. I don’t know what I would have done if it wasn’t for OBDC, because there weren’t any other options.”

MAX

LUMIO

SAN FRANCISCO

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CHALLENGE IMPACT

Small businesses in San Francisco make up 97% of businesses and employ 63% of workers – they are a vital element in keeping San Francisco diverse and livable. Businesses need access to capital and expertise to be a part of San Francisco’s prosperity.

OBDC’s successful partnership with the city of San Francisco is designed to support the city’s small business community, especially companies located in low-to-moderate income areas. Over the last five years, OBDC has deployed 74 loans totaling over $5 million in San Francisco.

Despite the city’s economic achievements, many of the city’s neighborhood corridors, especially those in low-to-moderate income areas, continue to struggle with rising prices and demographic changes.

OBDC works closely with city government to support and develop businesses in the city’s 26 Invest In Neighborhood areas.

Despite the city’s low unemployment rate, jobs for low-to-moderate income people who lack training continues to be a challenge.

Over the last five years, OBDC’s portfolio has created or sustained 400 jobs in San Francisco.

EMPOWERING SAN FRANCISCO’SURBAN ENTREPRENEURS

San Francisco is a melting

pot of small businesses, and it’s

exciting to provide capital in a city

that supports startup and growing

businesses. There are so many

good ideas and companies that have

evolved by people who have the

courage to put theory into practice.

I’ve enjoyed the opportunity to work

with entrepreneurs from different

walks of life who are all joined by

the same goal.

DARIUS MAHAJERSenior Vice President –

San Francisco Market Manager

OBDC HAS INVESTED

VETERAN-OWNEDBUSINESSESIN

TO

$1.4 MILLION

BUSINESSES NATIONWIDE ARE VETERAN-OWNEDIN1 10

OBDC BORROWERS INSAN FRANCISCO

14

IN THE L AST 10 YEARS

OBDC HAS

ORIGINATED

IN THE L AST 5 YEARS

300 LOANSIN OAKLAND $26 MILLIONTOTALING

IN THE L AST 5 YEARS

$23 MILLION

CREATED/SUSTAINED 400 JOBS

INTO BAY AREA COMPANIESOBDC HAS INVESTED

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As a veteran myself, I enjoy

helping my fellow veterans with the

often challenging and unclear aspects

of getting the capital needed to start,

manage, and grow small businesses.

The value and impact provided by

veteran small business owners is

tremendous given its implications to

our communities in terms of business

leadership, jobs, quality of life,

financial viability, and asset-building.

Given the tremendous sacrifices

veterans make, there are no words

that can adequately capture how

rewarding it is for me to be able to

help veterans in this way.

NOAH HARRISVice President –

Veterans Program

PARTNERING WITH VETERANS

OBDC HAS INVESTED

VETERAN-OWNEDBUSINESSESIN

TO

$1.4 MILLION

BUSINESSES NATIONWIDE ARE VETERAN-OWNEDIN1 10

OBDC BORROWERS INSAN FRANCISCO

14

IN THE L AST 10 YEARS

OBDC HAS

ORIGINATED

IN THE L AST 5 YEARS

300 LOANSIN OAKLAND $26 MILLIONTOTALING

IN THE L AST 5 YEARS

$23 MILLION

CREATED/SUSTAINED 400 JOBS

INTO BAY AREA COMPANIESOBDC HAS INVESTED

Started in 2014, OBDC’s Veterans Program provides training, capital, and support for new and existing veteran-owned businesses. Veterans struggle with both employment and access to business capital. They have the skills and motivation to become small business owners, and are 45% more likely to pursue self-employment than non-veterans. Nearly 1 in 10 businesses nationwide are veteran-owned.

CHALLENGE IMPACT

Veteran’s lack self-employment opportunities and access to capital for their businesses.

OBDC has invested $1.4 million into 14 veteran-owned businesses, and the portfolio is expected to rapidly grow over the next couple years.

Veterans lack comprehensive business support services to accompany their loans and business growth.

OBDC’s FastTrac program through the Kauffman Foundation is providing workshops and training to veterans in all stages of business.

HAUTE, HANDSOME FASHIONAs a U.S. Navy veteran, Karen Roberts utilizes her military training as a business owner. “You have to be disciplined, stay committed, and be able to change course and make decisions on the fly – just like a tour of duty,” she commented. Karen came to OBDC for capital to produce more inventory, as HauteButch’s sales were starting to decline, because they didn’t have all the sizes and styles that their customers were looking for. In addition to inventory, HauteButch was able to hire several employees, allowing Karen to focus on running her business. “It was a pleasant surprise to be funded by OBDC. I felt really supported during the process – like OBDC really wanted to help us.”

KAREN

HAUTEBUTCH

SANTA ROSA

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To truly be a community lender, we believe it is important that our staff and board have strong cultural competencies and reflect the demographics of our community and clients. We are proud to have a highly diverse, talented team that can meet the needs of underserved communities.

OUR TEAM

Jacob Singer, PhDPresident &

Chief Executive Officer

Noah HarrisVice President –

Veterans Program

Flor MelaraAssistant Vice President –

Relationship Manager

William OngExecutive Vice President & Chief Financial Officer

Jen LeybovichVice President –

Strategy & Development

Rachel AoananManager –

Loan Processing

Scott LewisSenior Vice President –

Oakland Market Manager

Jackie MaxwellVice President – Administration &

Accounting

Mandolin Kadera-RedmondManager – Administration

& Accounting

Darius MahajerSenior Vice President – San Francisco Market

Manager

Maopepe GaoteoteVice President – Loan Closing &

Compliance

Paula GrovesVice President –

Business Consulting

Joyce WindrossVice President –

Operations

Adrian Gomez ZavalaAssistant Vice President –

Relationship Manager

Kathia KacicAssistant Vice President –

Loan Servicing

Katie TaylorManager – Marketing

& Special Projects

Bruce Jobson, SPHRHuman Resources

OBDC STAFF

As a community development organization, OBDC embodies the aspirations, dreams, potential, and diversity of the greater San Francisco Bay Area community. Everyone within this organization is extraordinarily talented and committed to OBDC’s mission to empower local entrepreneurs to be successful. At this stage in my career, I am thankful to have the opportunity to work within this group of diverse, dedicated, and capable professionals and most importantly to service the needs of the entrepreneurs within our community.

SCOTT LEWISSenior Vice President –

Oakland Market Manager

Wendell W. Jones IIChair, Serial CFO

William TaylorMember,

The Law Office of William A. Taylor

Gladys GreenVice-Chair, Oakland

Economic Development Corporation

Kristina MartinMember, Citibank

Arthur WashingtonMember,

Nor-Cal FDC

Mark Alan LindquistSecretary,

M.A. Linquist Co.

Eric NelsonMember,

Bank of the West

Stephanie JonesTreasurer,

Wells Fargo

Erwin ReevesMember,

Richmond Community Foundation

OBDC BOARD OF DIRECTORS

SUPPORTERSOBDC is one of the country’s top performing CDFI small business lenders. For a copy of OBDC’s 2014 audited financial statements, please contact us at updates@obdc.com.

With Financial Support From:Bank of AmericaBank of the WestCalifornia Capital Access ProgramCalvert FoundationCDFI FundCity of OaklandCity of San FranciscoCiti Foundation

Comerica BankJPMorgan Chase FoundationNovogradac Rivers FoundationOpportunity Finance NetworkU.S. BankUnited States Small Business AdministrationWells Fargo

LaSandra HuntMember,

JPMorgan Chase

OBDC is a proud member of:

www.obdc.com

OAKLAND

2101 Webster Street I Suite 1200

Oakland I CA 94612

SAN FRANCISCO

One Market I Spear Tower I Suite 3528

San Francisco I CA 94105

OBDC Small Business Finance

@obdc_finance

OBDC Small Business Finance