Challenges of Non-Profit Lending: Insights from Richard Evans, Vice President
Discover the challenges non-profit organizations face in accessing bank financing from Richard Evans, Vice President with 30 years of experience in the lending field. Explore topics such as lender's appetite, non-profit challenges to banks, critical needs identified by foundations, and strategies to mitigate risks and secure bank approval.
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Presentation Transcript
Richard Evans Vice President 203-415-2811 The Challenges of Non-Profit Lending
About ME 30 years in the lending field Bank of America Webster Bank Community Banking SBA Lending
WHAT ARE THE CHALLENGES FOR NFPS TO GET BANK FINANCING????
1. What is a Lenders appetite? a. Balance Sheet i. ii. Working Capital iii. Accounts Receivable iv. Collateral Liquidity-Cash (DEPOSITS) b. Historical Performance i. EBITDA(C) ii. Past vs Present vs FUTURE???c.
c. Is there a Guarantor(s) d. Expertise of Manager(s) e. Financial Knowledge
WHAT CHALLENGES DOES A NON PROFIT HAVE TO A BANK??? Collateral Guarantors Balance Sheet Strength ??? Restricted Assets/Use of Funds Dependent on Grants Reporting Requirements
WHAT CHALLENGES DOES A NON PROFIT HAVE TO A BANK??? Mission Based (Social Service or Religion) Reputation Risk Small NFP s vs the Bigger well known NFP s
ROCKEFELLER FOUNDATION & FANNIE MAE FOUNDATION IDENTIFIED 3 CRITICAL NEEDS FOR A NFP: 1. Facilities Capital 2. Working Capital 3. Permanent Capital
HOW TO MITIGATE THE RISKS AND GET A BANK TO SAY YES BOD- Who s Who on the BOD Funding streams/Flexibility on Use of Funds Strong Management Tangibles Pledge Receivables
Richard Evans Vice President 203-415-2811 SBA 504, Community Advantage & Micro
