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Economic Development Training Class
Economic Development Credit Analysis
This course is held in partnership with the California Association of
Local Economic Development (CALED).
Date: March 3-5, 2010
Location: Los Angeles, CA
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“I now know what to look for when I have someone asking for a
loan.” | This hands-on course presents an
overview of business financing tools and available private financing options, as
well as how the public sector can complement bank financing. Learn how to read
financial reports, financial statements, balance sheets and profit and loss
statements. Course participants will perform credit analysis by determining how
well a company buys and sells to make a profit. Also, they will learn how to
determine if the company pays it suppliers on time, collects its receivables,
and controls costs to make a profit. Enroll now to understand the basics of
structuring deals for small businesses that often combine public and private
sector financing programs.
Course Highlights:
- Business credit analysis
- Balancing the sheet
- Profit & loss statement
- Small business lending programs
- Structuring loans
- Overview of real estate financing
Students should bring a calculator to this course.
Agenda
March 3 |
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8:30 - 9:00 am |
Registration |
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9:00 am - 12:30 pm |
Economic Development Finance Concepts
This session provides
economic developers with insight into the obstacles small business owners face
in finding affordable expansion financing. Participants are give an overview of
business financing needs and available financing options. The role of public
agencies in complementing bank financing is also explored. |
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12:30 - 1:30 pm |
Lunch on your own |
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1:30 - 3:00 pm |
Introduction to Business Credit Analysis
How does a bank determine
whether a business is creditworthy? This session details the credit analysis
procedures banks use in making loan decisions. Participants investigate two
business financial statements: the balance sheet and the profit-and-loss
statement. |
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3:00 - 5:00 pm |
The Balance Sheet
Where's the cash? Participants learn about the
accounts on the balance sheet in order to analyze how a company used its cash.
Assets, liabilities and net worth accounts will be defined and explained during
this session. |
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5:00 pm |
Homework Assignment
The evening in-class “homework” session will
consist of case studies of actual businesses. Participants will learn how to
spread financial statements and perform credit analysis on operating businesses.
This is the first step in determining whether the business is creditworthy and
can repay an expansion loan. |
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March 4 |
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8:30 - 9:30 am |
The Profit & Loss Statement
The profit and loss statement is
used to determine how well a company buys and sells to make a profit.
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9:30 - 10:30 am |
Quality Indicators
This session continues the hands-on approach to
making credit decisions about small businesses. Participants learn about various
financial tools, known as quality indicators, which are used to analyze a
company’s creditworthiness. |
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10:30 am - 12:30 pm |
Case Studies
Participants will utilize the credit analysis
performed on Monday night to make decisions about an operating business.
Students will learn how to determine if the company pays it suppliers on time,
collects its receivables, and controls costs to make a profit. |
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12:30 - 1:30 pm |
Lunch on your own |
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1:30 - 3:30 pm |
Economic Development Financing Programs
U.S. Small Business
Administration (SBA) loan programs are described. Participants learn how the
programs can be used to finance businesses in their communities. The SBA 7(a)
and SBA 504 programs are available in every community in the country and are the
leading public economic development financing tools. Understanding their
requirements will enable participants to increase the programs’ use and
availability in their communities. Participants use the program information
learned to structure deals for small businesses that combine public and
private-sector financing. |
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3:30 - 5:00 pm |
Structuring the Loan
The case studies completed earlier are
continued this afternoon. Participants will structure financing for the company
for the expansion project, using adjusted cash flow and public and private
sources of funding. |
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5:00 - 6:30 pm |
Homework Assignment
The evening homework builds on the skills
developed through Monday’s and Tuesday's sessions. Participants will underwrite
a loan for an operating business, by spreading historical financial statements,
reviewing the quality indicators and structuring a loan that the company can
afford using public and private financing sources. |
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March 5 |
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8:30 - 12:00 pm |
Developer Real Estate Financing
This session covers the motivation
and requirements of real estate developers. Communities can influence the
development process by providing financial incentives. Understanding developer
requirements for minimizing risk and maximizing return, as well as the lending
requirements of commercial banks, will help participants make informed decisions
when providing financial incentives on real estate development
projects. |
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12:00 - 1:00 pm |
Lunch on your own |
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1:00 - 4:00 pm |
Economic Development Financing Programs
Financing programs that
influence real estate development projects are reviewed, including the U.S.
Department of Housing and Urban Development’s Community Development Block Grant
program and the Section 108 Loan Guarantee program. Other federal, state and
local financing programs are also explored. This session concludes with a real
estate development case study, in which participants determine the amount of
public assistance needed for a project to move forward. |
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4:00 - 4:30 pm |
Wrap-up/Evaluation/Certificates |
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* Agenda subject to change |
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**PLEASE NOTE: In order to receive full IEDC certification credit for
this course and a certificate indicating course completion, participants must
attend the entire course and stay through the final session on the last day.
Please make travel plans accordingly.** |
Instructors
Stephanie Dugan
Director
National Development Council
Stephanie Dugan, a field director for the National Development Council since 1996, works with communities primarily in Texas to bring together financing for business expansions and affordable housing projects. She teaches NDC courses in Economic Development Finance, Business Credit Analysis, Problem Solving & Deal Structuring, Home Ownership Finance, Mixed Use Real Estate Finance and Low-Income Housing Tax Credits. She has assisted a number of clients to secure historic rehabilitation tax credits for various projects including a museum, a performing arts center, a movie theater, and a visitors center; and Low Income Housing Tax Credits for affordable housing projects. She draws on experience gained as the Assistant Director of Economic Development for the City of Abilene where she administered a small business finance and incentive program, capitalized at $6 million per year. Prior to leaving the City of Abilene, she served as project manager for the “Windsor Hotel,” $5 million downtown restoration project. She holds of Bachelor of Arts Degree from Texas Tech University in Economics.
Accommodations/Training Location
The Westin Bonaventure
404 South Figueroa Street
Los Angeles, CA
90071
Phone: (213) 624-1000
Website: www.starwoodhotels.com/westin/search/hotel_detail.html?propertyID=1004
IEDC room rate: $99 single/double
Cut-off date: Sunday, January 31, 2010
Please reference the International Economic Development Council to obtain the
discounted group rate. The group rate is available until Sunday, January 31,
2010 or until the room block is full. After the cutoff date, registration rates
will be subject to availability and prevailing rates.
Registration
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By Jan 20 |
Jan 21 - Feb 17 |
*After Feb 17 |
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IEDC Member |
$525 |
$625 |
$665 |
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Non-member |
$625 |
$725 |
$765 |
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*Walk-in registrations will be accepted. Full
payment must be made on-site in order to attend the course.
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Individual paying by credit card: Click this button if you are
registering as an individual IEDC member or nonmember and paying by credit
card. |
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Group or partner paying by credit card: Click this button if you are
paying by credit card and registering a group or as a partner with a promo code.
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Individual, group, or partner paying by check or purchase order: Click
this button to download a form (PDF) if you are paying by check or purchase
order, whether you are an IEDC member, nonmember, partner, or group. Form must
be faxed or mailed in and accompanied by payment. |
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