AJLL Small Business advisorsAJLL – SBA

Hampden Bank

Luke Kettles – Senior Vice-President David Chase – VP Commercial Lending Hanny Jabiev – AVP Commercial Lending

AJLL Small Business AdvisorsServices

• Loan Packaging Services

• Secondary Market Services

Loan Packaging Services

• Assist lenders in processing the various initiatives under the SBA 7(a) loan programs

• Provides expertise in packaging loans following SBA guidelines• Provides guidance in program requirements and limitation• Develop business plan for small business as part of the loan package• We act as the stand-in loan officer with SBA 7(a) loans• Principals with over 35 years of experience in loan packaging and refinancing

small business

Benefits to Lenders

• Makes lenders more efficient by eliminating costly and time consuming bureaucratic tasks

• Increase the SBA 7(a) loan portfolio• Expedite the loan approval process • Loan packaging fees at no cost to lender• SBA loan program mitigates risk and serves as a credit enhancement tool

7(a) Loan Programs

Initiative Standard Express Patriot Express S/RLA - SLA

Loan Amount Max $5M Max $350K Max $500K Max $350K

Guarantee 75% > $150K 85% <$150K

50% 75% > $150K 85% <$150K

75% > $150K 85% <$150K

Interest Rate for loans over $50K – up to 7 Years

Prime + 2.25%

Prime + 4.25%

Prime + 2.25%

Prime + 2.25%

Benefits to borrower

Long-term financing; No balloons; No prepayment penalty < 15 years; low interest rate

Fast turnaround; Streamlined process; Easy-to-use line credit

Higher max amount and lower max interest rate than SBA Express; Streamlined process; Easy-to-use line of credit

Same as 7(a) Plus lenders streamlined process

Benefits to LendersMax amount of loan; Max guarantee coverage

Streamlined process

Max amount of guarantee;Streamlined process

Max amount of guarantee

REASONS FOR SELLING THE GUARANTEED PORTIONS OF SBA 7(A) LOANS

• Three sources of income from an SBA loan sold into the secondary market at a premium: Premium income Interest income on retained portion Servicing fee income on sold portion

• Lender/borrower relationship Lender retains customer relationship as they continue to service their SBA

loans. Customer will not know that the loan has been sold in the secondary market

• Liquidity Proceeds from SBA loan sales raise capital to fund additional loans, other

investments or have ready source of cash

Secondary Market Services

7(a) Loans That Cannot be Sold

o Lines of Credit

o Revolving Loans

o Loans that are not Fully Disbursed

o Loans that are not current at the time of settlement

QualificationsAndres J. Lopez

Over 25 years in providing consulting services in financial, management and operational issues in a wide range of industries. Mr. Lopez was contracted by the City of Boston to provide loan packaging services for businesses in the area. He was the President of CDFC a former quasi public organization providing loans to businesses not able to secure a bank financing.

John D. Lloyd

Experienced in providing business plan preparation services to small businesses as directed by the Supplier Diversity Office. Experienced in assisting companies to growth by focusing in the preparation of strategic plans based on proven business models. Extensive track record in promoting economic development initiative. Mr. Lloyd is the Chairman of the Brockton Area Workforce Investment Board.

References

• Charles SmithVice President, SBA Specialist , Eastern Bank

• Andre Porter Executive Director Office of Small Business & Entrepreneurship,

Massachusetts Office of Business Development

• Keith Hunt Assistance Director - Department of Neighborhood Development,

City of Boston

• Reginald Nunnally Executive Director, Supplier Diversity Office

AJLL Small Business AdvisorsContact Information

John Lloyd Andres Lopez

Tel: (617) 359-0099 Tel: (781) 237-1010

Email: jlloyd@ajll-sba.com Email: alopez@ajll-sba.com

Fax. (617) 830-9990

P. O. Box 990562, Boston, MA 02199