-Overview
The Advanced Revolving Loan Fund Course builds on CDFA’s Intro RLF Course by providing in-depth instruction on loan underwriting and portfolio management. Topics discussed during this course include analyzing borrower documents, performing financial analysis, and making loan decisions based on the mission and lending criteria of your RLF. In addition, attendees will learn principles for analyzing loan performance, balancing portfolio risk through borrower and industry diversity, and smartly managing RLF proceeds to create new lending programs. Given the advanced curriculum for this course, it is expected that attendees will already have some basic education about how revolving loan funds operate and have previously participated in underwriting loans.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Join us online, and start down the road to personal and professional advancement today.
Register
Course Objectives
- Develop robust and nuanced loan underwriting skills
- Learn how to provide technical assistance to borrowers
- Create a methodology for making loan decisions based on mission
- Analyze and measure risk from multiple variables
- Sharpen portfolio management skills that strengthen RLFs
- Identify philosophies that can grow loan proceeds and build new programs
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Topics Covered
- Advanced underwriting techniques
- Analyzing borrower documents
- Performing financial analysis
- Evaluating risk
- Investment strategies
- Market analysis
- Using proceeds to build new programs
- Creative RLF strategies
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Who Should Attend?
- Loan fund managers
- Economic development professionals
- Community development professionals
- Government and nonprofit finance officers
- Legal counsel
- Underwriters
- Commercial bankers
- Accountants
- Financial advisors
- Policymakers
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Course Advisor
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Fawn Zimmerman
Council of Development Finance Agencies
Director, Research & Technical Assistance
Fawn Zimmerman is a Director of Research & Technical Assistance at the Council of Development Finance Agencies (CDFA) working to create, develop, and execute programming which will help underserved communities gain more access to capital. She is ... responsible for working on the CDFA Equitable Capital Loan Guarantee Program designed to bring more capital to minority small businesses and the CDFA–NASDA Foundation Socially Disadvantaged Farmers & Ranchers Access to Capital Program focused on curating an extensive database of agricultural resources, providing hands-on technical assistance, and developing culturally significant programming to encourage increased investment in socially disadvantaged farmers and ranchers.
Fawn studied at Ohio University as a post graduate and holds a BA with honors in Communication from The Ohio State University. She also has extensive experience working within the real estate industry in sales, investing, marketing, and operations; and, she has provided leadership in a variety of settings including classrooms, training sessions, production sets, and writing projects. She has long united her career goals with her philanthropic ones, and looks forward to applying her creative, academic, and work experiences together to promote positive changes within the development finance landscape. (More)
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-Agenda
Wednesday, May 15, 2024
| Wed 12:00 PM - 12:15 PM |
Welcome & Overview
Welcome participants, introduce CDFA, and set the stage for the course.
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| Wed 12:15 PM - 1:30 PM |
Principles of Loan Underwriting
To start the Advanced Revolving Loan Fund Course, we will discuss the essential best practices for loan underwriting. This session will include a discussion about RLFs in the context of economic development, and how underwriting principles should be aligned with the RLF’s mission and communicated clearly to borrowers, staff, and loan committee representatives. This session will form the foundation for upcoming exercises and case study analyses of various underwriting scenarios.
Speaker(s)
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| Wed 1:30 PM - 1:45 PM |
Break
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| Wed 1:45 PM - 2:45 PM |
Evaluating Risk
Developing a philosophy around risk is a critical component of operating a successful RLF. This philosophy could encompass several elements, including borrower risk, credit risk, default risk, portfolio risk, industry risk, and many others. Often, these risks are perceived and can lead to investment bias. Balancing the reality of improving access to capital of underserved borrowers while also employing a growth mindset can be difficult. Identifying where your RLF lands along the compendium of risk will help you be able to do the most good with the capital you have.
Speaker(s)
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| Wed 2:45 PM - 3:00 PM |
Break
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| Wed 3:00 PM - 5:00 PM |
Borrower Analysis
No two loans are alike. Even with clear underwriting guidelines, conducting the financial analysis and due diligence process takes time and a skilled team. During this session, several case study examples will be provided and course participants will collectively evaluate the loan decision. Come prepared for debate, a robust conversation about character lending, and a detailed analysis of financial statements.
Speaker(s)
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| Wed 5:00 PM |
Adjourn
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Thursday, May 16, 2024
| Thu 12:00 PM - 12:15 PM |
Revisiting Day 1
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| Thu 12:15 PM - 1:15 PM |
Collecting Borrower Documents and Providing Technical Assistance
Every RLF should be governed by a set of approved guidelines, policies, and procedures. This is especially important for maintaining consistency throughout the application, review, and technical assistance process. Many technology platforms exist to help make this process efficient, but not even the best IT infrastructure can replace the essential human interaction between loan fund staff and potential borrowers. During this session, we will evaluate various application procedures and discuss how proactive communication with borrowers can aid the underwriting process.
Speaker(s)
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| Thu 1:15 PM - 2:15 PM |
Investment Strategies
Your RLF is making loans and charging fees, borrowers are paying back principal with interest, and accounts are revolving and growing. The most successful RLFs are regularly evaluating the strength of their account balances and making decisions about investing returns. At what point have you earned enough to be able to build a new loan program? During this session, we will evaluate investment policies and ongoing growth strategies.
Speaker(s)
- Brett Doney, President & Chief Executive Officer, Great Falls Development Authority
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| Thu 2:15 PM - 2:30 PM |
Break
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| Thu 2:30 PM - 3:30 PM |
Portfolio Management
A robust RLF often encompasses several sources of capitalization along with a diverse set of borrowers. Managing reporting requirements, borrower payments, portfolio allocation, and constantly fluctuating accounts can sometimes feel like too many competing priorities. Identifying staff allocations and implementing consistent procedures can help maintain efficient operations and open up more time for long-term strategy and development. During this session, we will discuss portfolio management practices that work.
Speaker(s)
- Cynthia Tonucci, Senior Vice President, MassDevelopment
- Robin Weis, Deputy Director/ Rural MN Energy Board PACE Administrator, Southwest Regional Development Commission
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| Thu 3:30 PM - 3:45 PM |
Break
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| Thu 3:45 PM - 5:00 PM |
Identifying Market Gaps in Your Community
Aligning your RLF to the needs of the businesses in the community you serve is a constantly moving target. As industries change, borrower profiles evolve, and political leadership shifts, market gaps may appear and new groups of underserved businesses emerge. During the last session of the course, we will discuss proactive strategies for keeping a pulse on the business community and developing strategic partnerships to ensure your RLF continues to be relevant. Topics include evaluating rates and fees, updating lending criteria, watching economic statistics, and building a lending culture that supports borrowers.
Speaker(s)
- Siena Kane, Engagement & Operations Manager, Urban Redevelopment Authority of Pittsburgh
- Michele O'Connor, Director, Innova Commercialization
- Michael O'Donnell, Entrepreneurial Ecosystem Developer, Prairie Rose Development Corporation
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| Thu 5:00 PM |
Adjourn
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-Location
The Advanced Revolving Loan Fund Course will take place on Zoom. The course will meet each day from 12:00-5:00 PM Eastern. Attendees must have access to a computer and the internet to attend the course.
-Registration
This training course qualifies for the CDFA Training Institute's
Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
Scholarships are available to attend this event. Learn more about the
CDFA Scholarship Program,
and submit your application today.
CDFA permits only one person to log in and participate in the course. If multiple people are accessing the course without paying to attend, we will terminate the connection and access. CDFA offers group discounts for organizations that wish to register multiple people.
Register by April 26, 2024 for Early Bird Rates.
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CDFA Member: $550
Non-Member: $825
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CDFA Member: $600
Non-Member: $875
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Register