Fall 2009


Also in this Issue > CRF Goes Green with Capital Markets - NMTC Green Building Loan for Businesses > CRF To Present Three Workshops at OFN, Finalist for Wachovia Next Award > Rally Behind the March for Jobs on Web, Facebook, Twitter >NMTC Sparks 125 New Jobs with Project High Voltage
	SCOTT YOUNG, SENIOR VICE PRESIDENT AND CFO, FRANK ALTMAN, PRESIDENT AND CEO, AND LINNEA DOCKTER, PRODUCT DEVELOPMENT MANAGER, OF CRF ANNOUNCED THE NEW GREEN BUILDING LOAN PROGRAM IN A SPECIAL CEREMONY AUGUST 18 AT THE NEW YORK STOCK EXCHANGE.
	CRF Goes Green with Capital Markets - NMTC Green Building Loan for businesses After more than 20 years serving the capital needs of small businesses, CRF is “going green.” During an August 18 media event at the New York Stock Exchange, CRF announced it would offer a New Markets Tax Credit (NMTC) business loan for green building improvements. The new loan, called the CRF Capital Solutions – NMTC Green Building Loan for Businesses, will launch as part of a pilot program in Minneapolis and St. Paul, Minn. beginning in 2010. Proportionally, small businesses pay more for energy than large firms, making them more vulnerable to energy price increases. According to the U.S. Small Business Administration (SBA), these businesses carry about 20-35 percent higher average energy costs than their larger counterparts. While small businesses are often quick to adopt practices that will result in lower costs, many businesses – particularly those operating in low-income communities – also lack the financial and organizational resources to fund green building enhancements. As part of its Round 6 NMTC allocation, CRF developed this loan program to help ensure small business access to green building capital, making it easier for businesses to save money on operating costs and reduce environmental impact. The program is scheduled to launch in 2010 with the Saint Paul Port Authority (SPPA), City of Minneapolis Department of Planning and Economic Development (CPED) and Minnesota Community Capital Fund (MCCF) as primary lending partners for the pilot program. Though the product is still in development, CRF envisions the NMTC Green Building Loan for Businesses might cover a variety of improvements, including building-shell renovations as well as new heating and cooling equipment. Ideally, everything from weather-stripping to new lighting to full-scale green renovations will qualify. CRF is working with the Capital Markets Partnership (CMP), a nonprofit coalition of investors, government agencies and Non-Government Organizations promoting sustainable investment. CRF will use CMP’s Green Building Underwriting Standards to determine qualified projects for the new loan program, standards that can easily determine an asset’s “greenness” at the time of financing. Using the CMP standards, CRF can identify projects that will derive the most benefit from the program and make better risk-adjusted decisions. Following the pilot, CRF plans to offer the NMTC Green Building Loan for Businesses in other markets. Contact your market manager for more information.
	CRF To Present three workshops at oFN, finalist for wachovia next award The 2009 Opportunity Finance Network (OFN) conference kicks off October 27 in Charlotte, N.C. with a special opening plenary session to mark the organization’s 25^th anniversary. CRF will have a leading role at this year’s conference, participating in three workshops, offering custom evaluations to help lenders improve their servicing efficiencies, and vying for a Wachovia NEXT Award for Opportunity Finance. CRF’s senior vice president and chief financial officer Scott Young will participate in a presentation titled “Portfolio Management: When Back-Office Takes Front Burner” on Thursday, October 29 at 10:45 a.m. This session will focus on the steps Community Development Financial Institutions (CDFIs) take to improve operations and will discuss the expectations capital providers have of top quality servicers in this environment. Colleen Schwarz, CRF’s vice president of sales, will lead a session called “Responding to ‘The New Normal’: Innovation, Outsourcing, and Capitalization” on Friday, October 30 at 10:45 a.m. This discussion will explore operational and strategic changes CDFIs have made to realign their organizations with market conditions. Dawn Johnson, CRF's director of asset management, also will co-present at an OFN session titled, "Workouts: Microenterprise and Small Business (or How to Make the Best Out of a Really Bad Situation)," scheduled for October 30 at 9:00 a.m. This workshop will explore strategies, action plans, remedies, costs, consequences, and timelines associated with the liquidation of collateral, litigation and foreclosure of real estate. In recognition of its dedication to supporting underserved communities, CRF is a finalist for a Wachovia NEXT Community Impact Award, which recognizes CDFIs that have exemplified best practices and demonstrated measurable community impact. Winners will receive a $25,000 grant and national recognition for excellence in community impact. Finalists have demonstrated high volume and quality of outcomes relative to their peers in the opportunity finance industry, and have articulated the tangible differences these outcomes make in the communities they serve. The Wachovia NEXT Award winners will be announced October 28 at the OFN conference. Visit CRF’s booth at OFN to meet the CRF staff and learn more about how CRF can boost business efficiencies.
	Rally Behind the March for Jobs on Web, Facebook, Twitter New York Times columnist Bob Herbert recently called unemployment the nation’s biggest problem and a “number one priority.” Now more than ever, we need to strengthen small business and entrepreneurship in order to create jobs. Since launching the March for Jobs in June, CRF and its lending partners have: Delivered $26.5 million in capital to 11 borrowers in five states. Realized a potential impact of 618 new or retained jobs. Helped create 285 pre-school slots in low-income communities. Join the March for Jobs and donate, advocate or share to show your support for community-based job creation through small business. Become a fan of the March for Jobs on Facebook, join our group on LinkedIn and follow us on Twitter. Together, we can send a message that the American people are resilient entrepreneurs, committed to meeting business challenges no matter the odds. When you and your friends log on to www.marchforjobs.com and hammer home a rally sign, we’ll be one step closer to putting people back to work in our communities. Thank you for your continued support. Now, let’s get to work on going to work!
	NMTC Sparks 125 New Jobs with Project High Voltage Despite continued economic challenges, CRF and its lending partners are finding reason to hope recovery is underway, thanks to new initiatives like Project High Voltage, a new $15.9 million, 106,000 square-foot facility for Keller Electrical Industries of Phoenix, Ariz. Funding for the project comes from CRF’s Round 6 NMTC allocation and two partners. Scheduled for completion in 2010, the $15.9 million facility will ensure that the company – the Southwest’s leading provider of industrial motor repair, manufacturing and installation services – retains nearly 100 existing jobs and creates 125 new jobs by 2015, all within a low-income area of the city. The project includes land acquisition, equipment purchase and facility construction to replace the company’s current leased location. All of Keller Electrical Industries’ operations, manufacturing, repair, engineering, design and distribution needs will be served by the new facility, which also features 270 kilowatts of rooftop solar power generation that could cut the company’s power usage by half. When Keller Electrical Industries sought financing for Project High Voltage, the company faced a significant gap between the sum needed and what banks were willing to loan. The primary lender, Colorado Business Bank of Denver, Colo., needed tax credit enhancements in order to complete the deal. As one of the country’s largest NMTC allocatees specializing in business loans, CRF enthusiastically supported Project High Voltage by offering New Markets Tax Credits to equity investors (in this case, U.S. Bank) and flexible rates and terms for the borrower. Keller Electrical Industries’ new facility will be an attractive commercial development in a transitional neighborhood, where 38 percent of the residents live below the poverty line and the median family income is nearly half that of neighboring communities. This is an excellent example of the important role the NMTC program is playing in economic recovery, and the essential function of small business as a job creation engine. Thanks to NMTC financing, this facility will not only improve its business performance and energy efficiency, but it also will be a positive force for change in the community.