Presented by:Arlene Lugo & Patti Lind

April 21, 2009

Direct Loan Models• By Choice

In response to market needs Due to banking conditions

• By Necessity Taking defaulted guaranteed loans in-house

• Component of Loan Services Loan guarantees, direct loans, grants

• Designed to be compatible with capacity Utilizing staff capacity Servicing by bank, other non-bank lender

Underwriting Guidelines

• For orgs making internal lending decisions

• For orgs using a bank to service direct loans

Guidelines endorsed by Board

Reflect organizational philosophy

Key Considerations for Direct Lending

Lending Criteria: Terms & Rates

Due Diligence: Underwriting to include funder requirements, credit analysis, character indicators, risk rating

Collateral Criteria: Fair value, resale value, type of collateral, loan to value

Collateral Procedures: Titled vehicles, real estate, chattel

Loan Servicing: Closing, billing, managing loan repayment

Portfolio Management: Accounting including individual/collective portfolio balances, reserve for doubtful accounts

Program Management

Former program model & outcomes

Current program model

Future: Growth Opportunities!

Patti LindExecutive DirectorThe Abilities Fund &Iowa Able Foundation307 North 13th, Ste

500Centerville, IA 52544Toll Free 1.888.222.8943prlind@abilitiesfund.orgwww.iowable.org

Arlene Lugo, ATPProgram DirectorCT Tech Act ProjectDSS/BRS 25 Sigourney StreetHartford, CT 06106 860-424-4881arlene.Lugo@ct.govwww.cttechact.com/