surviving tough economic times
DESCRIPTION
Surviving Tough Economic Times. NALCAB Summit El Paso, TX July 17, 2009. Community Development Lenders. What It Means to be an “Intermediary” “Matching” Maturities Pressure Full Recourse Borrowing by LISC Our Lenders are in “Our Kitchen” LISC and CDCs are Public Charities - PowerPoint PPT PresentationTRANSCRIPT
Surviving Tough Surviving Tough Economic TimesEconomic Times
NALCAB SummitNALCAB Summit
El Paso, TXEl Paso, TX
July 17, 2009July 17, 2009
Community Development LendersCommunity Development Lenders
What It Means to be an “Intermediary”
“Matching” Maturities Pressure
Full Recourse Borrowing by LISC
Our Lenders are in “Our Kitchen”
LISC and CDCs are Public Charities
Mission vs. Credit Squeeze
Traditional Conventional LendersTraditional Conventional Lenders
Consequences of Dissolution/Subsumption of CD Units
Timing is Particularly Bad
Orient New Community Development or Bank Commercial Staff to Our Industry
Get to the Special Asset Folks
Talk about Multiple Pathways to Repayment
How Intermediaries Can HelpHow Intermediaries Can Help
Striving to be Patient
Partial paydowns will help Alternative and/or additional collateral
Development of New Lending Products and Approaches
Policy Advocacy for Community Development
Telling the Responsible Lending Story
Focus on Current CDC Financial ConditionFocus on Current CDC Financial Condition
Embracing Current Reality
Transparency or “Circling the Wagons”
Focus on Current CDC Financial ConditionFocus on Current CDC Financial Condition
Red Flags:
Liquidity Crunch
High Budget to Actual Variance
Revenue Falling Short
Quarterly Internal Statements – How Prompt is the Delivery?
Overdue Audit
Focus on CDC FutureFocus on CDC Future
Importance of Cash Flow Projections
Realistic Forecasting Assumptions Stress Testing Contingency Planning
CDC Capacity to Produce Projections
Focus on CDC FutureFocus on CDC Future
Future Development Likely at Lower Level
What New Operating Models are Being Explored?
Expanded Program Goals Leveraging Capacity and Funding Through New Partnerships
New Federal Funding Opportunities
Should Merger or Acquisition be Considered?
LISC Contact InformationLISC Contact Information
• www.lisc.org
• www.ruralisc.org
• http://www.lisc.org/content/publications/detail/8246 “Robust Cash Flow Projection”
• • http://www.lisc.org/content/publications/detail/
7926 “Working with Lenders”