Engaging CRBT to bring longer term, fixed interest rate loans to - - PowerPoint PPT Presentation

Team EDGE August 6, 2015 Presented by: Randy Frescoln Vice President, Specialty Finance Group 515.493-8118; cfrescoln@crbt.com

Engaging CRBT to bring longer term, fixed interest rate loans to assist rural business

• Willing to make longer term, fixed

interest rate loans in rural communities, which improves cash flow by lowering payments.  Review projects and provide proposal

• Work with local lenders

What can CRBT do for you?

• Part of $2.5 billion asset, full service,

community bank holding company

• SBA Preferred Lender. # 1 SBA bank in

Iowa over last six years (FY09 – 14)

• USDA National Business &

Industry Lender of the Year

Who is CRBT?

• CRBT is willing to make long term, fixed

interest rate business loans in ANY USDA eligible rural area within the Midwest Region.

What makes CRBT different from other community commercial lenders?

• 1. More financing options
• 2. Longer repayment terms (7/15/30 years)
• 3. Improved cash flow
• 4. Larger loan on rural collateral
• 5. Comfort against business cycle

fluctuations

Why use USDA Loan Guarantees

• 26 Loan Guarantees, exceeding $87

million, closed in Iowa, Minnesota, South Dakota and Wisconsin.

• 4 applications, exceeding $25 million, in

process in Illinois and Iowa.

• Loans range from $1 million

to $21 million ($5 MM ave.)

• No losses or delinquencies

CRBT B&I Loan Guarantee Production

• Manufacturers (50%)
• Real Estate Holding Companies (from university housing to ex Maytag

industrial complex)

• Value added agriculture food and feed ingredient processors
• Traditional Agricultural supply elevators
• Convalescent homes
• Residential mental health and substance abuse facilities
• Office supply and stationery stores
• Medical, dental and hospital equipment wholesaler

CRBT B&I Customers

• $3.7 MM - purchase extruder

equipment

• $1.3 MM - expand facility
• Keep line of credit local
• To help anyway they can

Example - Rural manufacturer wanted

• Continue operating loan and business

relationship

• Mitigate legal lending limitations.

2001 purchase and 2006 expansion loans

• To help anyway they can

Local lender wanted

• Business to expand locally
• USDA IRP RLF funds assisted in

2001 purchase.

• USDA RBEG funds help

develop industrial park

• To help anyway they can

Community wanted

• Business to expand locally
• 2001 – built / leased w option to buy

building with USDA REDL Program.

• 2006 – expansion with

USDA REDG Program.

• To help anyway they can

Rural Electric Cooperative wanted

• Sell extruder press equipment
• To help anyway they can

Italian equipment vendor wanted

• Expertise and willingness to make

long term, fixed interest rate loans in any USDA eligible rural area using USDA Loan Guarantee Programs

• Willing to be good partner
• To help anyway we can

CRBT invited to table

• Refinanced existing real estate debt,
• btained new extruder equipment and

facility expansion (favorable package)

• 25 year term, fixed interest rate on RE
• 15 year term, fixed interest

rate on equipment

Business – final result

• Outstanding 2001 purchase and 2006

expansion loans paid off, which helped legal lending limit compliance

• Maintained operating line and banking

relationship

• Participating with CRBT
• n new loans made

Local Lender – final result

• Existing company expanded locally
• Job and tax base benefits
• USDA IRP and RBEG (now known as

RBDG) established RLF funds available for future needs

Community – final result

• Existing 2006 REDG loan continues
• New $150,000, 2% - 10 year loan to

fund extruder equipment from REDG established RLF

• New $1 million,

0% - 10 year REDL

Rural Electric Cooperative – final result

• Extruder press equipment sale
• Priced invoice in US dollars to

eliminate currency risk to company and bank

• 7 year note on portion
• f extruder sale until

USDA REDL funds obtained

Italian equipment vendor – final result

• USDA B&I Loan Guarantee – 25 year

term, fixed interest rate

• USDA B&I Loan Guarantee – 15 year

term, fixed interest rate

• 7 year note on portion
• f extruder sale until

USDA REDL funds obtained

CRBT– final result

• B&I Loan Guarantees - up to $25 MM
• Establish community RLF

a) RBDG $50 - $100 K b) IRP - $2/$15MM / $150K sub loan

• REC - USDA REDL&G

$1MM (L) or $300K (G)

• CF Loan Guarantees – no limit
• W&WD Loan Guarantees – no limit

Community Development Tool Kit

• Willing to make loans with longer

repayment terms to rural business in any USDA eligible area

• Willing to be a good partner with local

development participants

• We ask for a chance to review

the project and provide a proposal

CRBT has expertise rural business can bank on

• CRBT is willing to make l_ _ _ term,

f_ _ _ _ interest rate business loans in A_ _ USDA eligible rural area within the M_ _ _ _ _ _ Region.

What makes CRBT different from

• ther community commercial lenders?