-Agenda
Wednesday, May 14, 2025
| Wed 12:00 PM - 12:15 PM |
Welcome & Overview
Welcome to the course! This session will introduce CDFA, explain how to use the online software, and discuss the framework for the two-day Advanced Revolving Loan Fund Course.
Speaker(s)
- Lori DeWine, Managing Director, Council of Development Finance Agencies
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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, and rarely is a loan a “no-brainer." 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 a debate, a robust conversation about character lending, and a detailed analysis of financial statements.
Speaker(s)
- Michelle Beecher, Loan Officer, Rural Nevada Development Corporation
- Robert J Owens, Loan Program Associate/Advantage Illinois Team, Illinois Department of Commerce and Economic Opportunity
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| Wed 5:00 PM |
Adjourn
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Thursday, May 15, 2025
| 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 principle with interest, and accounts are revolving and growing. The most successful RLFs regularly evaluate the strength of their account balances and make 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)
- 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)
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| Thu 5:00 PM |
Adjourn
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