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”