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Access Florida Finance Corporation

Access Florida Finance Corporation. FFN Member Organizations. Access Florida Finance Corporation (AFFC) Loans & loan guarantees for rural & minority businesses Florida Development Finance Corporation (FDFC) Florida Enterprise Bond: $250,000 to $2 million tax-free industrial revenue bonds

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Access Florida Finance Corporation

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  1. Access Florida Finance Corporation

  2. FFN Member Organizations • Access Florida Finance Corporation (AFFC) • Loans & loan guarantees for rural & minority businesses • Florida Development Finance Corporation (FDFC) • Florida Enterprise Bond: $250,000 to $2 million tax-free industrial revenue bonds • Florida Export Finance Corporation (FEFC) • Pre-export working capital guarantees • Political risk insurance • Medium-term financing for export of capital goods • OPIC guarantees for investment outside of U.S. • Florida First Capital Finance Corporation (FFCFC) • 504 Loan Program: Loans for small business real estate & equipment • Florida Recycling Loan Program: Loans to supportrecycling & reduced landfill use • FLEX Loan Program: Loans for profit & nonprofit real estate & equipment, includes refinance • Neighborhood Lending Partners, Inc. (NLP) • Provides financing to developers of affordable housing and community revitalization

  3. FFN Summary • Unites Florida’s small business economic development finance programs • Lends and guarantees loans to Florida small businesses • Builds awareness of private and public sector economic development finance resources available to Florida small businesses FFN 1-YEAR TOTALS TOTAL PROJECTS ………………………………… 442 TOTAL PROJECT DOLLARS ……………………. $824,849,804

  4. Fed Data:Small Businesses Face Credit Crunch Commercial Lenders Credit Box Shrinking Crunch Time: Credit Woes Threaten Economy FFN Assures Credit Availability • Access to capital at reasonable rates and terms • Assures credit availability in uncertain economic times • Unique partnership allows private lenders greater credit flexibility • Strengthens local economic development efforts through direct financial stimulus

  5. Access Florida Finance Corporation

  6. Mission Statement To provide Access To Capital and technical assistance to black, rural and small businesses throughout Florida and the nation. AFFC will foster Economic Development and job creation by use of Federal, State and private Community Based Programs and in coordination with our strategic alliances.

  7. Eligible Projects • Commercial real estate acquisition, improvements or construction • Machinery & equipment acquisition • Community Development Projects • Create or save jobs • Franchise acquisition • Existing business acquisition, expansion or merger • Pollution control • Transportation Services • Working capital • New business start-up (must prove relevant industry experience) • Special purposes within the scope of AFFC’s mission

  8. General Requirements • Commercial business • Agree to provide all necessary information • Pay $250 application fee • Sound individual character • Minimally acceptable credit score of 600 • Acceptable form of Collateral (i.e. Real Estate, business assets, etc..), with one notable exception • Cash flow of business reasonably supports loan payments

  9. Black Business Loan Program • Located in Florida • Business at least 51% owned and controlled by Black Floridians • U.S. Citizen and Florida Resident • Direct Loans upto $50,000; Loan Guarantees up to ability to borrow from a bank • Unsecured Micro Loan up to $10,000 available for owners with a 625+credit score • Interest rates on Direct Loans currently range between 5% and 10%, depending upon circumstances; Loan Guarantees are at bank rates • Loan is economically sound and will assist the business in becoming bankable, increase employment and grow the economy • Business will be able to compete successfully with the Loan or will obtain technical or managerial support

  10. Rural Business Loan Program • Must be citizens of the United States. In the case of an organization, at least 51 percent of the ownership must be U.S. citizens. • Must be located in a rural area in Calhoun, Gadsden, Gulf, Holmes, Jackson or Washington County • Direct loans from $10,000 to $150,000 • Interest rates currently range between 6% and 10%, depending upon circumstances • Must be unable to finance the proposed project with other means • No delinquent debt to the Federal Government. USDA Loan Funds may not be used to satisfy the delinquency.

  11. How Businesses Get Financed • Inc. Magazine 5000 fastest growing companies • 71% were financed by owner or family and friends • 24% Debt financed • 5% Equity financed • Entrepreneur Magazine’s Hot 500 Companies for 2007 • 64% were financed by owner or family and friends • 25% Debt financed • 11% Equity financed

  12. Banks Private Finance Cos FFN Applicant Direct SBDC Access To Capital Clearinghouse (AFFC) Accion FSHCC FBCC HBIF BBICs Clearinghouse Referrals

  13. Success Story Sebai CMET, Inc. Located in Melbourne, FL Environmental Clean Energy Company Requested $20,000 in a working capital Line of Credit to fund operations while a larger loan from Space Florida was in the works. Closed in February 2011

  14. Success Story The Chestnut Firm Located in Gainesville, FL Law firm specializing in tobacco related cases Requested $50,000 for equipment purchases and working capital to fund expanding operations Closed in November 2008

  15. Success Story Jus Hip Hop Located in Pembroke Pines, FL Dance Studio Requested $30,000 in working capital for Start-up financing After one year, Jus Hip Hop had eight employees and 74 students Closed in July 2009

  16. Success Story Naturally “U” Art and Braid Studio Located in Tallahassee, FL Hair Care and Educational Services Requested $13,000 in financing to move to larger location and begin classroom services First place winner of First Annual Business Plan Writing Contest in 2009 Closed in May 2010

  17. Contact Information Mark A. Scovera President 2623 Blairstone Road Tallahassee, FL 32301 850-878-0775 850-270-1122 (fax) Mark.Scovera@AccessFloridaFinance.com http://www.AccessFloridaFinance.com

  18. Florida Development Finance Corporation

  19. Florida Development Finance Corporation • Enterprise Florida affiliate • Administers Florida Enterprise Bond program • Typical minimum/maximum amounts for tax exempt financing: $800,000-$20 million • No maximum for taxable financing but should exceed $1 million because of transaction costs associated with the bonds

  20. Florida Development Finance Corporation • Must be used for capital expenditures, e.g. land acquisition, construction, equipment • Use of bonds – 501 (c) (3)s, small manufacturers, sewage facilities, airports, multi-family housing • Smaller bond projects can be pooled to “minimize” transaction costs

  21. Success Story • Royal Concrete, Okeechobee County • Modular concrete building manufacturer • Located in Enterprise Zone & Rural Area of Critical Concern • FEDF issued $18 million in taxable bonds • Proceeds financed acquisition/construction of real property and equipment purchase • Plant opened 1/31/08 - 600 jobs in 3 years

  22. Success Story • Learning Gate Community School, Hillsborough County • Not-for-profit 501(c) (3) charter school for 550 students • Project funded by taxable and tax-exempt bond financing, including $6.5 million+ in tax exempt financing • Proceeds used for construction and equipping new classrooms

  23. Florida Export Finance Corporation

  24. FLORIDAEXPORT FINANCE CORPORATION A Not-For-Profit Corporation Formed and Funded By Florida Statute 288.770

  25. FLORIDAEXPORT FINANCE CORPORATION Mission: Creation of Income and Employment for Florida Residents

  26. FLORIDAEXPORT FINANCE CORPORATION Achieved By: Providing Financial Guarantees and Consultative Services to Exporters Mandating Shipments thru Florida Ports

  27. FLORIDAEXPORT FINANCE CORPORATION Products: Pre-Export Working Capital Short-Term Credit and Political Risk Insurance Medium-Term Financing Structures for Capital Goods

  28. FLORIDAEXPORT FINANCE CORPORATION Eligibility: Florida Registered Company Majority Owned by Florida Resident(s) Manufacturing or Trading Co. Less than 250 Employees Net Worth < $6,000,000 No Mandate on Time in Business

  29. FLORIDAEXPORT FINANCE CORPORATION Financial Support: Exporter Must Have Orders or Series of Orders from Foreign Buyer(s) Loan is made to Support the Order(s)

  30. FLORIDAEXPORT FINANCE CORPORATION Maximum Guarantee: $500,000 Revolving Line of Credit or Single Sale Flexible Tenor

  31. FLORIDAEXPORT FINANCE CORPORATION Exporters Responsibility: Sign FEFC Application Sign Loan Documentation with Lender Personal Guarantees Required for Shareholder(s) of 20% or More

  32. FLORIDAEXPORT FINANCE CORPORATION Pre-Export Takeouts: Assignment of Proceeds of CILC’s Post-Shipment Credit & Political Risk Insurance Case by Case Approval by FEFC for 5A Rated Foreign Buyers

  33. FLORIDAEXPORT FINANCE CORPORATION Transaction Guidelines: The Loan Amount Will not Exceed the Cost of Goods Sold in the Transaction The FEFC Guarantees up to 90% of the Loan Amount

  34. FLORIDAEXPORT FINANCE CORPORATION Transaction: $100,000 Letter of Credit 80,000 Cost of Goods Sold Loan: $ 80,000 Loan Amount (100%) 72,000 FEFC Guarantee (90%) 8,000 Lender’s Share (10%)

  35. FLORIDAEXPORT FINANCE CORPORATION Lender Receives a Transaction Attachment and Guarantee Commercial Bank Lenders Utilize Normal Commercial Documentation for FEFC Guaranteed Loans

  36. FLORIDAEXPORT FINANCE CORPORATION FEFC Works with Ninety Six Commercial Bank Lenders Across the State of Florida for Pre-Export Guarantees

  37. FLORIDAEXPORT FINANCE CORPORATION Market Access Enterprise Florida International trade & Business development Boca Raton (561) 362-5626 Jacksonville (904) 359-6600 Miami (305) 569-2650 Orlando (407) 902-0230 Pensacola (850) 474-2521 Tallahassee (850) 922-8832 Tampa (813) 276-9430

  38. Florida First Capital Finance Corporation

  39. About FFCFC • Florida First Capital Finance Corporation is a statewide certified development company that is licensed and regulated by the U.S. Small Business Administration • FFCFC was founded by the state of Florida in 1983, and today operates as a private, nonprofit corporation • FFCFC provides access to capital for small business owners in order to stimulate and develop small business growth in Florida • FFCFC is a charter member of the Florida Finance Network, an alliance of economic development agencies

  40. FFCFC’s Purpose • Strengthen the economic development of the state of Florida and provide financial assistance to small businesses, specifically through the 504 loan program, in conjunction with the SBA and private sector lenders • Provide technical assistance: Structuring, underwriting, closing • Sole source of contact between the borrower and the SBA • Service the loan for its life

  41. Why Own? • Pay yourself • Build equity/grow an asset • Reduce real estate expenses • Control/fix real estate expenses • Stop throwing money away on rent! • Fulfill a dream • Own your real estate even after you sell your business (became a landlord yourself)

  42. Use of 504 Proceeds • Acquisition of vacant land for construction of a new building • Construction of a new building • Acquisition of land and existing building • Remodel, convert, expand or renovate existing building • Leasehold improvements • Acquisition of machinery and equipment with a minimum useful life of 10 years • Purchase of furniture, fixtures and equipment • Contingency reserve, not to exceed 10% of the construction costs • Associated fees, including fees to the SBA, and soft costs

  43. 504 Program Benefits • Up to 90% commercial financing • Projects from $125,000 to $20 million • Below market, true fixed interest rates–No ARMs • Low down payment, usually 10% • Long amortization terms, up to 20 years • Loans may be assumable by qualified, acquiring businesses • Associated fees, including fees to the SBA, and other up-front costs and expenses may be financed in the loan

  44. 504 Eligibility • The borrower must be a legal entity: corporation, partnership, sole proprietor, limited liability company • The borrower must be a for-profit business located in or planning to locate in Florida • The borrower must be a U.S. citizen or registered alien with a green card • The borrower’s tangible net worth cannot exceed $8.5 million • The borrower’s two-year average after tax annual profits cannot exceed $3 million • The project cannot be entirely income producing (i.e., relying on tenant income)

  45. 50/40/10 Deal Structure Sample Project: Cost Acquisition of Building $850,000 Renovations $100,000 Soft Costs $50,000 Total $1 million Financing Lender – 1st Mortgage (50%) $500,000 FFCFC 504 – 2nd Mortgage (40%*) $400,000 Borrower Equity (10%) $100,000 Total $1 million (* Up to $1.5 million standard; $2 million public policy; and $4 million manufacturing)

  46. The FFCFC Advantage • lQuick turnaround time • lStreamlined environmental process • lLowest effective rates permitted by law • lApproval decisions made daily • lSimultaneous closing process for straight acquisition projects • lSpecialized statewide network of local FFCFC closing attorneys

  47. Success Stories Borrower: Oxley Cabinet Warehouse, Jacksonville, FL Industry: Reseller of building materials Loan Type: 504 Financing Purpose: Purchase land and existing 16,900 square-foot building Loan Amount: $616,600 Borrower: Pegasus Transportation, Orlando, FL Industry: Charter bus transportation Loan Type: 504 Financing Purpose: Purchase land and existing 6,440 square-foot building Loan Amount: $810,000 Borrower: CDS Manufacturing Co., Quincy, FL Industry: Small manufacturer Loan Type: Florida Recycling Loan Program Financing Purpose: Purchase molds for forming pre-cast concrete products using reclaimed concrete Loan Amount: $200,000

  48. Neighborhood Lending Partners, Inc.

  49. Core Purpose Statement Improving quality of life in our neighborhoods by facilitating private and public investment, to provide opportunities for growth preservation and revitalization.

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