The document provides information about the Great Falls Development Authority (GFDA) in Great Falls, Montana. It summarizes that GFDA is a non-profit economic development organization that provides financing to businesses through various loan programs. It has provided over $194 million in financing to 117 businesses over time, with low delinquency and default rates. GFDA aims to promote business growth, job creation, and economic diversification in its 13-county region through financing and various economic development programs.
2. » 13 county 225,000 population
» Rocky mountain front
» Great Falls of Missouri River
» 44,000 square miles
» Large job loss in late 1970’s
» No job growth in 1980’s/1990’s
» Agricultural region
» USAF missile base
Great Falls, Montana
3. » 13 county 225,000 population
trade area
» Rocky Mountain Front
» Great Falls of Missouri River
» 44,000 square miles
» Urban/rural agricultural region
» USAF missile base
» Large job loss in late 1970’s
» No job growth in 1980’s/1990’s
» Wages 72% of national average
Great Falls, Montana
4. Great Falls Development Authority
» 501 (c) 3 charitable non-profit corporation
» Public/private partnership – 80% private
» 9 person staff team growing to 10
» Community Development Financial Institution (CDFI)
» $11.7 million in loan capital
» Goal to increase loan capital to $15 million in 3 years
» High Plains Financial affiliate SBA 504 lender
501 (c) 4 non-profit corporation
Staffed by GFDA
Separate Board of Directors
5.
6. Great Falls Development Authority
» Comprehensive economic development
Business retention and expansion
Entrepreneurship
Business attraction
Downtown, riverfront and commercial corridor redevelopment
Heavy industrial rail-served park
Workforce
Community teaming
» Host Small Business Development Center (SBDC)
» Host Procurement Technical Assistance Center (PTAC)
» Host Manufacturing Extension Center
8. GFDA Lending Track Record
» Closed 117 loans
» Our Capital $42,067,238 22%
» Private Capital $152,540,067 79%
» Total Investment $194,607,305
» Principal Write-off $248,570 0.59%
» Delinquent Loans 0
9. 4 Loan Products
» Gap subordinate financing
Average 18% of deal
Up to 25 year amortization; typically 5-7 year balloon
» Bridge subordinate financing
Average 16% of deal
Typically interest only with 2-3 year balloon
» Brownfield Cleanup
Up to 80% of remediation costs
Low interest under 3%; can be long-term
» SBA 504 Real Advantage
Low equity, low fixed interest long term fixed national debenture
11. Lending
» Deployment Goal: Average 85%
» Borrowers
Business, commercial real estate, multi-family, non-profit
» Pricing 1-2% above participating bank rate
Internally buy-down rate if necessary for high impact deals
» Risk commensurate with mission impact
Willing to take greater risk in return for higher mission impact
13. Bridge Loans a Great Opportunity
» Bridge loans now outnumber more traditional gap
financing loans in our lending activity
» Short time span revolves your limited funds more quickly
» New Market Tax Credits
» Historic Tax Credits
» Tax Increment Financing bond
» Permanent financing such as Freddie Mac
» State brownfield cleanup reimbursement
» Capital fundraising
16. Sources of Loan Capital
» Economic Development Administration (EDA)
» Community Development Block Grant (CDBG)
» USDA Intermediary Relending Program (IRP)
» SBA 504
» EPA Brownfield
» Community Development Financial Institution (CDFI)
» State Small Business Credit Initiative (SSBCI)
» City Tax Increment Financing
» State MicroBusiness
» Multi-Bank Line of Credit
» Sell Loan Participations
18. Other Financing Used
Tax Increment Financing
Montana Economic Development Infrastructure Loans
Historic Tax Credits
New Market Tax Credits
Low Income Housing Tax Credits
Industrial Bonds
SBA Community Advantage (7a)
USDA B & I
USDA Community Facilities
And more…
20. Demand for Economic Development
Financing Greater Than Ever
» Fewer community banks
Fewer experienced loan officers in communities
Centralization of credit decisions
» Stricter bank regulations
» Banks once again tightening credit standards
» Appraisals still coming in short in many areas
» Small business capital needs continue to grow
» Imperfections and discrimination still exist in financing
marketplace
21.
22. 8 Most Important Things in Marketing
Economic Development Loan Funds
» Awareness
» Relationships
» Simplicity
» Reputation
» Partnering
» Diversification
» Creativity
» Celebration
23. Awareness
» Constant marketing
Earned Media
Weekly GFDA Top 10 email and social media
Quarter Index email and social media
Rack cards
Speaking opportunities
» Monthly LaunchPoint
» Storytelling
» Entrepreneurial Spirit Tour
» Targeted marketing to populations, geographies & industries
29. Simplicity
» Simple message marketing
1) We finance parts of deals others can’t
2) We make projects happen that otherwise
wouldn’t
3) CONTACT US
We are you first call, not your last!
32. Reputation
» Your personal and organizational brands are what
people say about you when you’re not there
» Commitment to client and bank service
Monthly client satisfaction survey
» Earn your reputation every day
» Team pipeline management
FOLLOW THROUGH
35. Partnering
» The world is your potential partner
» Cultivate and nurture partnerships
» Leverage your limited resources
» Develop trust and respect
» Weekly lender huddles on difficult deals
38. Diversification of Loan Capital
» The more tools in your tool chest, the greater diversity of
deals you can do
Passive real estate projects
Nonprofit borrowers
» Proposed EDA RLF defederalization
41. Creativity
» Figure out how to use loan capital in new ways
» Persevere on high mission impact financing deals
» Tap into expertise and networks
» Be the deal driver – at the center, not the periphery
44. Celebration
» Widely celebrate every client success!
» Targeted population events: The Fire Within
» Targeted area events: Downtown Showcase
» Client events and earned media
» Award nominations and celebrations