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									     Joint Oppor tunities for Building Success




 Vectra Bank                       $25,000 JOBS
  Colorado                        grant multiplied

      and                       to bring $750,000
                                   from the SBA
 The Colorado                   Microloan Program
Enterprise Fund
                        Joint Oppor tunities for Building Success Program




    Joint Opportunities for Building Success (JOBS)
    is an economic development funding program that assists FHLBank
    members in promoting employment growth in their communities.
    FHLBank Topeka has allocated $1 million for JOBS annually.

    Recommended uses              Competitive fac tors

    Reduce interest cost on       In its inception in 2004, FHLBank set aside $500,000 for the JOBS grant
    small business loans          program. Due to an overwhelming response to the program and demonstrated
                                  need across the Tenth District, FHLBank raised the grant total from $500,000
    Fund a micro-loan pool
                                  to $1 million in 2005. Even with the doubled JOBS allotment, the application
    as part of a community’s
                                  process remains very competitive. “There were many strengths of the Vectra
    entrepreneurship
    development program
                                  Bank/Colorado Enterprise Fund JOBS proposal, including leveraging other
                                  sources of funds such as SBA for the program; a statewide approach to the
    Facilitate entrepreneurship   program befitting a wide spectrum of employment-generating activities; the
    training in the community     collaboration of a multitude of agencies and funding sources in the program;
    and fund fixed-rate loans     and the program’s emphasis on development of economic assets through
    to viable small business      entrepreneurial activities,” said Chris Imming, FHLBank director of Housing
    projects
                                  and Community Development.
    Collaborate with recently
                                     Employment impact                       Use of multiple FHLBank
    established resources
                                                                             products for project
    such as the New Market Tax       Viability of project and
    Credits and the Community        readiness to proceed                    Member use of FHLBank
    Development Financial                                                    products and services
    Institutions programs            Community needs
                                                                             Distribution of funding
    Enhance equity financing         Community participation                 throughout the Tenth District
    through Small Business
    Investment Corporation
    activity                      Par ticipation requirements

                                  FHLBank members can receive an annual maximum of $25,000 total, with
                                  each project limited to $25,000. Loan pools and similar funding mechanisms
                                  are eligible to receive more than one JOBS award annually provided there is an
                                  eligible project in the pool for each JOBS application funded. JOBS funds may
                                  be used in conjunction with other FHLBank products and programs, except
                                  the Affordable Housing Program (AHP) and AHP set-aside programs (Rural
                                  First-time Homebuyer Program and Targeted Ownership Program).




2                                                                                         denotes CEF qualification
                                                                                          $25,000 JOBS
Vectra Bank Colorado                                                                      Grant: CEF’s
                                                                                          Demographic
With assets of $2.3 billion, Vectra Bank Colorado is a proactive customer-focused         Snapshot
organization dedicated to relationship banking. Part of the Zions Bancorporation family
of banks, Vectra Bank serves Colorado’s small, middle-market and corporate business       County:
clients through more than 40 full-service branches in communities across Colorado.        Multiple/statewide
Vectra Bank has been a member of FHLBank Topeka since 1992.
                                                                                          Census Tract:
                                                                                          Multiple/statewide
FHLBank Member: Vectra Bank Colorado
Michael Martinez, Community Development Director                                          Targeted
2000 S. Colorado Boulevard, Suite 2-900 | Denver, Colorado 80222                          Population:
720.947.7700 | mmartinez6@vectrabank.com | www.vectrabank.com                             Minority; women;
                                                                                          low-income
                                                                                          business owners


Colorado Enterprise Fund                                                                  U.S. Congressional
                                                                                          District:
CEF is a nonprofit community development financial institution (CDFI) serving small         1 – 7 (statewide)

businesses primarily in 15 counties along Colorado’s Front Range. Founded in 1976,
                                                                                          Number of
CEF specializes in microenterprise and small business development, loaning more than
                                                                                          Jobs Created:
$11.3 million to over 600 small businesses since 1990, when its direct lending program
                                                                                          Estimated 150
began. CEF’s mission is to foster economic opportunity and create jobs through small
business ownership by providing loans and technical assistance. CEF specifically targets   Number of
business owners who are low- to moderate-income individuals, women, and/or                Jobs Retained:
minorities, as well as businesses that provide jobs for this target market.               Estimated 225

Loans range in size from $1,000 to $200,000 per business, with an average loan size       Scattered Site:
of $18,613. Interest rates are charged at about 10 percent. Terms are tailored to the     Yes, Rural and Urban
needs and capacity of the business. CEF has maintained an exceptional loan loss rate of
4 percent or less for the last 20 years. Each year, CEF makes about 75-100 new            Other Funding
loans and manages a portfolio of approximately 225 loans.                                 Sources:
                                                                                          SBA; HUD CDBG Eco-
                                                                                          nomic Development;
Non-profit Agency: Colorado Enterprise Fund
                                                                                          State of Colorado;
Ceyl Prinster, Executive Director
                                                                                          Opportunity Finance
1888 Sherman Street, Suite 530 | Denver, Colorado 80203
                                                                                          Network; Major Banks
303.860.0242, x 13 | ceyl@coloradoenterprisefund.org | www.coloradoenterprisefund.org
                                                                                          and Community
                                                                                          Banks; Cities of
                                                                                          Boulder and Denver;
                                                                                          Local Foundation
                                                                                          Grants; U.S. Dept of
                                                                                          Treasury (CDFI);
                                                                                          Calvert Foundation;
                                                                                          BP Amoco Foundation;
                                                                                          Ms. Foundation




                                                                                                             3
CEF’s JOBS Grant Use                                                              Once we learned our
CEF plans on using its $25,000 JOBS grant, awarded in July 2006, toward           JOBS grant request was
providing matching funds for accessing loan capital from the SBA Microloan
Program. CEF has been an active participant in the SBA Microloan Program          viable, I began working
since 1992 when the Program first began. This SBA Program provides fund-
ing to approved intermediaries like CEF to supply loans and technical assis-
                                                                                  on the application right
tance that assist small businesses that cannot access traditional, market-based
financing products. The funding from SBA for the loan pool is structured as a
                                                                                  away. We didn’t have
10-year loan to the intermediary, and in order to access this loan capital, the   much time to complete
intermediary must provide a 15 percent match. The match must be non-federal
funds and cannot be borrowed capital. CEF was already approved on a new           the application, but it
round of SBA loan capital for $750,000. With the JOBS funds, CEF will now
be able to draw down these SBA Microloan funds to help small businesses in        was straightforward and
the community.
                                                                                  a very simple process.
The Boppy Company, Ltd., an example of what CEF clients can achieve               We didn’t have to invent
Many women dream of how to mesh their roles as mother and business                a new program to
women, but Susan Brown has turned that dream into a reality for herself
and her 22 employees. Owner of The Boppy Company, Ltd., a thriving baby           qualify for these funds.
pillow company, Susan is now living her childhood dream. “Having my
own business has been a dream I have had since I was a little girl. I feel
                                                                                  Ceyl Prinster,
immensely empowered to know that I could succeed when put to the
                                                                                  Executive Director,
test, and believe strongly in the power of small business in America.”            Colorado Enterprise Fund




                                                                                                 The Colorado Enterprise Fund’s
                                                                                              motto is “Helping people succeed
                                                                                             in small business.” CEF’s staff does
                                                                                                 just that for small businesses in
                                                                                                Colorado by providing business
                                                                                               loans and technical assistance to
                                                                                              entrepreneurs who lack access to
                                                                                            mainstream financing sources. From
                                                                                                  left to right: Anthony Masucci,
                                                                                                         commercial loan officer;
                                                                                                Ceyl Prinster, executive director;
                                                                                                         Angela Valdez, manager
                                                                                                                  of loan services;
                                                                                                                 and Lewis Hagler,
                                                                                                                        director of
                                                                                                                       operations.
When Susan decided to start her           Relationship Building
pillow business full time in 1989
(pictured below), she quit her job        Michael Martinez, Community Development director for Vectra
at an advertising agency and cashed       Bank Colorado, understands the importance of building connections
in her 401(k), but still needed money
                                          within the community. He joined the CEF board in January 2006, to
to build inventory. Susan wasn’t able
                                          strengthen the collaborative effort in building small businesses.
to qualify for a traditional bank loan,
but had heard about CEF’s microloan
program. “I presented a business
                                          Michael admits that he wasn’t fully aware of the JOBS program until
plan and financial forecasts. I pledged   he met with FHLBank account manager Kelly Malone and community
the house as collateral and received      programs manager Mark Ward. “When I heard about this program,
my first loan of $25,000 through the      I thought, ‘CEF would make a great partner in this,” he said. The
Colorado Enterprise Fund. CEF was                                                                    population that CEF
a lot of help – they paid for me to                                                                  serves is typically
go to a financial seminar to learn                                                                   unbankable small
how to do the monthly books. They                                                                    businesses who are
reviewed my annual plans and                                                                         willing to work hard,
acted like a board of directors for                                                                  but are generally
me. They were there as a helping
                                                                                                     denied access to more
hand and moral support.” Today, the
                                                                                                     conventional financial
Boppy pillow receives accolades from
                                                                                                     support. “At Vectra
American Baby magazine and is sold
nationwide in Toys R Us, Babies R Us,
                                                                                                     Bank Colorado, we
Target, independent stores and a                                                                     feel strongly that a
variety of catalogs.                                                                                 healthy community
                                                       Ceyl Prinster, executive director for CEF and consists of a good
                                             Michael Martinez, Community Development director        mix of small and
Ceyl Prinster, executive director for
                                           for Vectra Bank Colorado, discuss the impact that small
CEF, says Brown’s small business                businesses have on economic vitality in Colorado.    big business.”
success illustrates the long-term
benefit of CEF’s access to funds like     Ceyl Prinster mirrors that belief. “Small businesses are the heart and
FHLBank’s $25,000 JOBS grant. “Susan      soul of the Colorado economy, and most of them – over 75 percent
Brown is just one of the many success     – are very small enterprises having 10 or fewer employees. These
stories we have to share. The money
                                          businesses not only provide jobs for community residents, but they
we’ll get from leveraging these JOBS
                                          build wealth for their owners, and that means investment in the
dollars gives us the opportunity to
                                          economic vitality of the region,” said Ceyl. “The net result is a
continue building success stories like
Susan’s over the next 10 years.”
                                          win-win situation for the business, the lender and the community.”

                                          Ceyl explains the importance of FHLBank’s $25,000 JOBS grant to
                                          the organization. “These types of programs leverage dollars, skills,
                                          contacts and resources. In our case, the $25,000 JOBS grant is multi-
                                          plied to bring $750,000 from the SBA Microloan Program.”



                                          CEF Challenges: Matching Funds and Marketing

                                          Two of CEF’s key challenges have been finding matching funds and
                                          marketing its program. “Working with banks is our best solution to
                                          this problem, because banks can not only refer businesses to us that
                                          do not meet their criteria – which eases our marketing problem – but
                                          they can also invest in our program, which addresses our funding
                                          needs,” Prinster noted. “By doing so, banks assist businesses and

                                                                                                                             5
    entrepreneurs in finding financing while keeping their deposits and other         I think more and more
    financial services. With people and organizations working together doing
    what each does best, everyone comes out ahead and the community is the          people are recognizing
    better for it.”
                                                                                    that housing and eco-

    Use of Multiple FHLBank Produc ts                                               nomic development are

    Vectra Bank currently uses FHLBank advances and letters of credit. Vectra
                                                                                    intimately linked. In
    Bank has also received more than $2 million in AHP grants since 1992.
                                                                                    the past, we were apt to
    Michael added that many FHLBank programs have been fruitful for Vectra,         view them as individual
    and builds the case that its strong use of FHLBank Topeka’s Affordable
    Housing Program (AHP) funds has also contributed to economic development        silos, but now, hand in
    in Colorado. “I just got back from a ribbon-cutting ceremony for the San Luis
    Migrant Farm Worker Housing Corp., subsidized with a $300,000 AHP grant.        glove, you can’t have
    It was remarkable, seeing new construction in a very rural part of Colorado
    in the San Luis Valley. This housing development created jobs and stimulated    one without the other.
    confidence within the community,” he said. “I think more and more people
                                                                                    Michael Martinez
    are recognizing that housing and economic development are intimately linked.    Community Development Director,
    In the past, we were apt to view them as individual silos, but now, hand in     Vectra Bank Colorado
    glove, you can’t have one without the other.”



    What ’s Ahead

    The new relationship forged between Vectra Bank and CEF is a symbiotic
    one to say the least. As a primarily commercial lender, Vectra Bank
    certainly has interest in graduating non-bankable folks into mainstream
    customers. “They’re the backbone of our economy and the customer
    base that we want to serve. In addition to the strong nonprofit
    organizational development skills I bring to the table, we’re able to
    access funding that CEF will benefit from (i.e., JOBS),” said Michael.




            Martinez remains acutely aware of how
        important the relationship Vectra Bank has
        with CEF is in building economic growth in
         Colorado. “Having a strong small business
     climate makes for strong local economies and
      communities. The CEFs of the world, through
         their lending, help banks raise the tide for
          all communities, in particular historically
           under-served communities through the
        provision of conventional loans they offer.”


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