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Economic Development Training Class
Economic Development Credit Analysis
Date: May 5-7, 2010
Location: Lansing, MI
Please note: This class is conducted in partnership with the
Michigan Economic Developers Association and the National Development Council
(NDC). For information on fees, accommodations, the agenda, and speakers - and
to register online for this class - please visit their website.
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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
May 5 |
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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 |
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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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May 6 |
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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 |
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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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May 7 |
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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
Misty Baskett
Housing and Economic Development Corporation (HEDC)
National Development Council
 National Development Council is a national non-profit that provides economic and community development assistance to local governments. For the past 11 years, Misty Baskett has worked for the National Development Council as an Asset Manager. She helps NDC’s Northwest clients finance, build and maintain government facilities. The projects in her portfolio of over $1 Billion in assets include government office buildings, a city hall, medical clinics, biomedical research facilities, data centers, student housing and parking garages.
Misty teaches the Economic Development Finance and Real Estate Finance courses as part of NDC’s Economic Development Finance Professional (EDFP) Certification series. She is an active participant in course development, working closely with the training staff to keep NDC’s economic development finance training course current and relevant, as well as developing new courses in Asset Management. Misty has mentored and helped train new NDC instructors.
Misty received a B.A. with Distinction in Philosophy from the University of Washington in 1998 and was certified as an Economic Development Finance Professional in 2001.
Robert Sweet
Director
National Development Council
 As a
member of NDC’s East Team, Robert Sweet works primarily in the northeastern U.S.
providing technical assistance to client communities including operational
analyses of proposed client projects to structuring financing packages which
include Historic Rehabilitation and New Markets Tax Credits. Sweet teaches two
courses in NDC’s Economic Development Finance Certification Program: ED101 –
Economic Development Finance and ED201 – Business Credit Analysis. He is also an
underwriter for NDC’s SBA 7 (a) loan fund program: NDC Grow America Fund.
Prior to joining NDC in 2007, Sweet served as the Deputy Regional Director
for the Southern Tier for the Empire State Development Corporation and as well
as the Director of Loan Funds for the Broome County Industrial Development
Agency. He is a graduate of SUNY-Binghamton.
Accommodations/Training Location
Training Location
Thomas M. Cooley Law School
Cooley Temple Conference Center
217 South
Capitol Avenue
Lansing Michigan 48901
Email: avery.john@medaweb.org
Phone: (517)
241-0011
Accommodations
Radisson Hotel Lansing
111 North Grand Avenue
Lansing, MI 48933
Phone: (517) 482-0188 or (800) 333-3333
Hotel
website
IEDC room rate: $116 single/double
Cut-off date: Sunday, April 4, 2010
The Radisson Hotel Lansing is within walking distance (0.3 miles) to the
Cooley Temple Conference Center.
Registration Fees
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By March 24 |
March 25 - April 21 |
*After April 21 |
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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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