Annual Report

2008

Colorado Lending Source

Dear CLS Members and Colorado Small Businesses:

Colorado Lending Source has felt the recession like every other fi nancial institution, with a slow down in new loan approvals for 2008. It was sad to see even this small set back from such a dynamic non-profi t that has seen nothing but positive growth in the last 7 years. As a result of this slow down, some adjustments had to be made to assure the company could remain strong during this recession. CLS did in fact fi nish the year very strong, ending 2008 with a strong positive cash fl ow and very good liquid-ity.

CLS continues to have a very bright future having built strong relationships over the years by providing excellent service to our participat-ing banks, by adding new participating lenders every year and by cultivating a great staff of caring and hard working people to serve the business community of Colorado. CLS con-

tinues to be Colorado’s Number One, most active, certifi ed development company for 2008. Also, CLS is again ranked in the top 10 of development companies in the entire nation.

Especially now during this recession, the SBA 504 Program is obviously a very smart loan for businesses wanting to expand and/or lock in their overhead costs by owning their own real estate facilities. So during this recession busi-nesses can still get the fi nancing they need to take advantage of the opportunities that may become available.

It has been a pleasure to be a part of this excellent organization as a volunteer board member over the last 6 years. Colorado Lend-ing Source continues to make a major impact in growing the Colorado economy and you, as members, are an important part of seeing that this dynamic effort continues.

With best wishes to all for a prosperous 2009,

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EXECUTIVE REPORT CLS Executive Director, Mike O’Donnell gives a review of 2008.

59PARTNER LENDERS & ORGANIZATIONS

We partnered with these lenders and organizations to provide loans and information to Colorado’s small business community in 2008.

Jim Ocken, PresidentColorado Lending Source Board of DirectorsSenior Vice PresidentGuaranty Bank & Trust Company

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Jim Ocken

SUCCESS STORIES The CLS staff nominated each of these businesses to receive a Small Business Award at our 2008 Annual Meeting.

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EXECUTIVE BOARD of DIRECTORS

Jim Ocken Guaranty Bank & TrustPresident

Lila NighCity of ArvadaVice President

Connie MeineJ.P. Morgan Chase BankTreasurer

Terri GrovesBroomfield Economic Development CouncilSecretary

Dick Hinson Aurora Economic Development CorporationPast President

BOARD of DIRECTORS

Don Abbott Loveland Business Development Center

Brian Ballard FirstBank of Colorado

Rudy Bianchi United Western Bank(Honorary non-voting Board Member)

Susan Blansett R&D Development

Mark BostockCentennial Lending

Brian BurkesbaAccess

Becky Clark City of Lakewood

Preston Gibson Jefferson Economic Council

Niall MooneyCommerce Bank

Steve Sexson Wells Fargo SBA Lending

David Adzema Citywide Banks

Todd AllenColorado Assoc. of Manufacturing & Technology

Jeff BassTCF Bank

Suzanne Bastin Guaranty Bank & Trust

Seth Bradley UMB Bank

Rick BrunoFirstBank of Tech Center

Fred Burmont Upstate Colorado Economic Development

Dawn DavisFirstBank of Northern Colorado

Dale HancockGarfield County

Ron HarlowHarlow Capital Corporation

Craig Kaffenberger United Western Bank

Sharon KingBoulder SBDC

Tim MerkleMile High Banks

Micheal PaulXpert Advantage

Corri SpiegelCity of Centennial

Denise StephensJefferson County Business Resource Center

Jayne Reiter Lakewood SBDC, Denver SBDC

Dan Wallace West Quadrant Financial

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The mission of Colorado Lending Source is to foster the economic growth of diverse small businesses across the length and breadth of this beautiful state of ours. This mission is really the only reason that Colora-do Lending Source exists as an organization, as most of you know.

The way we choose to accomplish our mis-sion is through the delivery of the fi nancing programs we offer to small business owners seeking expansion funds to acquire, con-struct or improve facilities that they primarily occupy, and / or, to assist owners wanting to purchase capital equipment utilized in the operation of their small businesses.

In the challenging economic times that we have been and are experiencing, calendar year 2008 was understandably not as strong a year as its predecessor. Nevertheless, the hard working, dedicated, enthusiastic and gum-chewing staff of Colorado Lending Source originated a total of 224 new projects in 2008. The majority of these, 191 (85%) were SBA 504 loans, with a small smattering of Community Reinvestment Fund loans (21) and New Markets Tax Credit loans (12).

Combined, these new 224 loans will have a $310 million impact on the state of Colorado and this, I feel, is a remarkable achievement for a small economic development organiza-tion like Colorado Lending Source … and a

big impact for the state of Colorado!

The 67 different banking groups and 145 different bank loan offi cers, who partnered with us on these new loans, accounted for $171 million worth of this impact. Our share of these fi nancing projects was $105 million, and, small business owners themselves con-tributed $44 million worth of new investment into the state.

Each year, our annual report is a celebration of the small businesses that Colorado Lend-ing Source is lucky enough to work with, the banks that it is our pleasure and honor to partner with, and the organizations that we enjoy supporting.

In this best-ever annual report, I would per-sonally like to thank the staff of Colorado Lending Source for keeping positive and do-ing such a great job, when all around us has been so much doom and gloom. And I would like to thank ALL the people we have worked with too in Colorado’s lending community, along with our partners, supporters, members and, of course, the board of directors. What we achieve we achieve because of all of you!

Most respectfully,

Mike O’DonnellExecutive DirectorColorado Lending Source

P.S. This is shaping up to be a “good” reces-sion but not a “great” one. Please remember that as 2009 unfolds.

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4 ANNUAL REPORT COLORADOLENDINGSOURCE.ORG

Mike O’Donnell

The Dohm-Icebox Knitting Mill officially got its start in the summer of 1993 when Josh McGlothlin worked as an apprentice under knitting mill expert Richard Krueger. Under Krueger, Josh learned how to use antique hand knitting and sewing machines to create distinctive sweaters.

Today, owners Josh McGlothlin and Scott Baker use these same machines to create “functional yet fashion-able” wool hats by blending colorful merino wool or wool mohair blend yarns from Italy and Peru. And as if that isn’t exciting enough, each piece is handcrafted in the USA (with the exception of their made in Peru line which is hand knit by Indigenous Peruvian Indians in the Alpaca Valley).

As an environmentally conscious business, Dohm-Ice-box makes efforts to do things in a community friendly way. Most recently they have added one of a kind hats and accessories made by recycling sweaters and Xob,

the recycled sweater monkey dolls, that are assembled with the help of the Center of People with Disabilities.

Major retailers, including REI, are carrying the Dohm-Icebox line in addition to boutiques and specialty shops. This success has of course lead to plenty of de-mand and growth; which we all know eventually leads to the need for more physical space. The business relocated to a 5,568 square foot building in Longmont, Colorado that Scott and Josh financed using the SBA 504 loan program. This new location includes plenty of storage and office space and will allow the business to double its production!

Colorado Lending Source was pleased to partner with Jim Ocken at Guaranty Bank & Trust to provide Scott Baker and Josh McGlothlin with the SBA 504 loan for the real estate purchase. The business was originally established with the assistance of a microloan from Colorado Enterprise Fund.

Icebox Knitting

L iteye Systems, Inc. is a unique business that specializes in “enhancing human vision” through high-resolution, head mounted dis-plays (HMD) and micro imaging. HMD’s, by definition, are micro displays placed before the user’s eye to deliver computer generated imaging. Examples of commonly used imag-ing are text, maps and schematics, but really the possibilities are infinite. These displays are designed to be used in any environment, and consume very little power.

The company develops and manufactures these advanced display systems for various types of businesses in the military, medical, aviation, and maintenance industries. Liteye

has the capability of producing custom so-lutions for clients who include some of the world’s largest companies and government agencies, and is recognized as a worldwide leader of HMD technology.

Owners Rick Sondag, Kenneth Geyer and Tom Scott utilized the SBA 504 loan program for the purchase of a 21,872 square foot, state of the art facility in Centennial, CO. From this new facility they are capable of producing off-the-shelf products and creating “quick proto-types” for any custom job. Colorado Lending Source partnered with GE Capital to provide commercial real estate financing through the SBA 504 loan program.

Liteye Systems, Inc.

B uilt in 1891, the Capitol Hill Mansion is one of Den-ver’s last original homes built prior to the silver crash of 1893. The mansion remained a family home until 1923 when it became the Buena Vista Hotel, and was later converted into office space in the 1960’s. In 1993 the mansion was transformed into the elegant Capitol Hill Mansion bed and breakfast. In 2001, Carl Schmidt took over operations of the bed and breakfast with the help of his daughter and the occasional culinary stu-dent from the nearby art institute.

While there have been some renovations over the years, the plaster ceilings in the living and dining rooms, the walls in the foyer, the stained glass window on the landing and most of the woodwork in the man-sion are original and untouched by time or previous

tenants. This exquisite bed and breakfast features eight distinctive guestrooms, each with a private bath and some with private balconies, gas fireplaces and whirlpool tubs. Room rates include a gourmet break-fast in the dining room and evening wine service in the parlor. The Capitol Hill Mansion has been featured in National Geographic Traveler and has received recogni-tion by several culinary publications for the exceptional cuisine.

Colorado Lending Source partnered with Jim Ocken at Guaranty Bank & Trust to provide Mr. Schmidt with a New Markets Tax Credit Loan to refinance the bed and breakfast. Rhonda Housden with Colorado Housing & Finance Authority provided the first deed of trust financing for the project.

Capitol Hill Mansion

Jennifer Kaufman started her own insurance agency in 1996 after spending most of her work-ing life in the sales and fi nance departments of the automobile industry. Teaming up with her husband Bill Kaufman, the two have built a thriving portfolio of clients by providing excel-lent customer service that has led to a success-ful referral system. The Kaufman’s received a reward for all of their hard work when Farmers allowed them to take on several retired agents books. This achievement is only reached by the top 1% of agents and is proof of the team’s com-mitment and knowledge.

After leasing commercial property for many years, Jennifer and Bill decided the time was

right to buy their own offi ce space. The building they selected in Downtown Littleton would give them plenty of room to sub-lease offi ce space as they had done in the past. Under stipulations of the Farmers insurance contract, Jennifer and Bill were not eligible for commercial real estate fi nancing through the SBA 504 Loan Program. Instead, the couple was able to fi nance the pur-chase of the building through the New Markets Tax Credit program, which provided the fl ex-ibility they needed partnered with the low down payment they were looking for.

Colorado Lending Source worked with Rick Bruno at FirstBank of Tech Center to provide Jennifer and Bill Kaufman with the NMTC loan.

Kaufman Insurance

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Advantage BankAlpine BankAmerican National BankAmFirst Bank, N.A.Bank of ColoradoBank of the WestCache Bank & TrustCalifornia Bank & TrustCapital DevelopmentCapital West National BankCedar Rapids Bank & TrustCentennial Lending LLCCenter BankCitywide BanksColorado Business BankColorado Capital BankColorado First Commercial MortgageColorado Housing & Finance AuthorityCommercial Capital FundingCommunity Banks of ColoradoCommunity Reinvestment FundCompass BankFirst American State BankFirst Community BankFirst National BankFirst National Bank of DurangoFirst National Bank of MonumentFirst National Bank of the RockiesFirstBank of ArvadaFirstBank of AuroraFirstBank of BoulderFirstBank of Cherry CreekFirstBank of ColoradoFirstBank of El Paso CountyFirstBank of EvergreenFirstBank of Fort CollinsFirstBank of LakewoodFirstBank of LakewoodFirstBank of LittletonFirstBank of LongmontFirstBank of Northern ColoradoFirstBank of South Jeffco

FirstBank of Tech CenterFirstBank of Wheat RidgeFirsTier BankFlagship BankFort Collins Commerce BankFort Morgan State BankGardner National BankGE Commercial FinanceGuaranty Bank and Trust CompanyHanmi BankHome State BankIntegrity Bank & TrustInternational BankIronStone BankJP Morgan ChaseKeyBank, National AssociationMain Street LenderMile High BanksMillennium BankMountain States BankMountain Valley BankMountain View Bank of CommerceMutual of Omaha BankNew Frontier BankNew West BankPacific Commerce BankPeoples National BankPremier BankPueblo Bank and TrustRocky Mountain Bank & TrustSilver State BankSteele Street Bank & TrustSturm Financial Small Business CreditSummit Bank & TrustUMB Bank Colorado, N.A.United Western BankUS Bank, N.A.Vectra BankWachovia Small Business CapitalWells Fargo National AssociationZions National Bank

We Would Like To Acknowledge And Thank The Following Financial Institutions Who Partnered With Us In 2008.We Would Like To Acknowledge And Thank The Following Financial

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Aurora Chamber of CommerceAurora EDC, Inc.Boulder County Business ReportBoulder County Workforce Development BoardBoulder Economic CouncilBroomfield EDCCAGGLCarbon Valley Chamber of CommerceCarbondale Chamber of CommerceColorado Business Incubation AssociationColorado Companies to WatchColorado Council on Economic EducationColorado Enterprise FundColorado Outward Bound FoundationColorado Rural Development CouncilColorado Small Business Development CentersColorado Springs Chamber ExpoColorado Springs Chamber of CommerceColorado Women’s Chamber of CommerceCPIACraig Chamber of CommerceDelta Area Chamber of CommerceDelta Area Development EDCDenver Business Journal Awards Luncheon

Denver Metro Chamber ExpoDenver Metro Chamber of CommerceEconomic Developers’ Council of ColoradoEvergreen Community Development AssociationFort Collins Chamber of CommerceGlenwood Springs Chamber ExpoGlenwood Springs Chamber of CommerceGrand Junction Area Chamber of CommerceGrand Junction Chamber ExpoGrand Junction Economic PartnershipGreeley Chamber of CommerceIBC Education FoundationImagine! FoundationIndependent Bankers of ColoradoJefferson Economic CouncilLafayette Chamber of CommerceLongmont Area Economic CouncilLoveland Chamber of CommerceMetro North Chamber of CommerceMi CasaMicro Business Development CorporationMontrose Chamber ExpoMontrose Chamber of CommerceMontrose EDC

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Colorado Lending Source was founded in 1990 as a private, nonprofit, economic development organization. We provide commercial real estate financing to small business owners in Colorado through the SBA 504, Community Reinvestment Fund (CRF), and New Markets Tax Credit (NMTC) loan programs. These programs allow small businesses to purchase, construct, and improve owner occupied commercial real estate for as little as 10% down with a fixed interest rate.

We are the only PCLP (Preferred Certified Lender Program) lender in the state of Colorado. This status gives us the delegated authority, from the U.S. Small Busi-ness Administration, to provide our partner lenders and borrowers with efficient and expedited loan processing, closing, and servicing assistance. Colorado Lending Source has been ranked the #1 SBA 504 lender in the state, and has remained in the top ten in the nation for five consecutive years.

We Are Pleased To Have Belonged To, Helped Out, Participated With Or Supported The Following Organizations In 2008!20

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Mike O’Donnell .................... Executive Director

Barbara Taylor ................. Front Office Manager

Loan Production

Karol Jones .............. Loan Production ManagerCindy Scheich .................... Senior Loan OfficerKaren McDevitt .................. Senior Loan Officer

CRF & NMTC LoansAmber Boyer ................................. Loan OfficerLaurel Walk ................................... Loan OfficerNicole Christianson .......... Loan/Closing Officer

CRF & NMTC LoansTod Cecil ....... Business Development Manager

Western ColoradoSusan Malek .................. Assistant Loan Officer

Loan Closing

Stacey Williams ..................... Closing ManagerSara Beyer ............ Senior Loan Closing OfficerEdna Milinowicz .... Senior Loan Closing OfficerLinda Hogan ..................... Loan Closing OfficerLacey Cale ........ Assistant Loan Closing Officer

Loan Servicing

Dianne Ariki .......................... Portfolio ManagerBeth Wortham ........ Loan Compliance ManagerAlissa Frohreich .. Senior Loan Servicing OfficerCheryl Driscoll ................. Program Coordinator

Marketing

China Carll ......................... Marketing ManagerStephanie Martin ................... Marketing Officer

IT

Diane Rhodes ................................. IT Manager

CLS Staff

Our mission is to foster the economic growth of diverse

small businesses within our communities.

Denver Metro Chamber ExpoDenver Metro Chamber of CommerceEconomic Developers’ Council of ColoradoEvergreen Community Development AssociationFort Collins Chamber of CommerceGlenwood Springs Chamber ExpoGlenwood Springs Chamber of CommerceGrand Junction Area Chamber of CommerceGrand Junction Chamber ExpoGrand Junction Economic PartnershipGreeley Chamber of CommerceIBC Education FoundationImagine! FoundationIndependent Bankers of ColoradoJefferson Economic CouncilLafayette Chamber of CommerceLongmont Area Economic CouncilLoveland Chamber of CommerceMetro North Chamber of CommerceMi CasaMicro Business Development CorporationMontrose Chamber ExpoMontrose Chamber of CommerceMontrose EDC

Morgan Community CollegeNADCO NAGGLNorthern Colorado Economic Development Corp.Procurement Learning for American IndiansRifle Chamber of CommerceRMASBA Resource Fair 2008SCORESEBREASouth East Business PartnershipSouth Metro Chamber ExpoSouth Metro Chamber of CommerceSteamboat Springs Chamber of CommerceSummit Chamber of CommerceThe Asian ChamberThe ChamberThe West ChamberUniversity of Northern Colorado FoundationUpstate Colorado EDCWestern Colorado Business Development Corp.Westminster ExpoWindsor Chamber of CommerceYoung Americans Center for Financial Education

If you aren’t already receiving emails from CLS, you are missing out on valuable information, and prob-ably even a good laugh. Emails you can choose to receive include:

• CLS Monthly Newsletter• SBA 504 Interest Rate Updates• Training Class Updates

Sign up on the home page of our website www.ColoradoLendingSource.org.

SIGN UP FOR OUR EMAIL LIST!

...cont.

303.657.0010 ANNUAL REPORT 11

518 17th Street, Unit 1800 • Denver, CO 80202Phone: (303) 657-0010 • Toll Free: (877) 852-6799 • Fax: (303) 657-0140

2520 South Grand Avenue, Suite 207 • Glenwood Springs, CO 81601Phone: (970) 947-1400 • Fax: (970) 947-1404

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