Growth Capital Program Overview Kendall Hutchinson Brownfield Workshop

Growth Capital Program Overview Kendall Hutchinson Brownfield Workshop May 15, 2019

Wyoming Smart Capital Network $13. 2 Million Debt and Equity Fund Formed in 2012 through Dept. of Treasury’s SSBCI program Consortium of 17 municipalities in Wyoming • • Led by the city of Laramie 2018 – Expanded to 10 Counties Small business lending and investment programs ($13. 2 Million) • $12. 7 Million Collateral Support Program (CSP) • Invested $500, 000 through Wyoming Smart Capital Fund, successful exit • July, 2018 – Introduced Subordinated Loan Participation Program titled “Growth Capital Program” (GCP) Managed by Development Capital Networks Mark Huston – Enterprise Manager Kendall Hutchinson – Development Specialist Robert Heard – Programs Director Rob Mc. Naughton – Controller

WSCN Service Area

Our Service WSCN partners with private lenders and investors to expand credit and capital availability to small businesses throughout its service area. From 2013 – 2018, the WSCN offered a Collateral Support Program (CSP). WSCN would purchase a Certificate of Deposit and the proceeds would be used to serve as additional collateral. The WSCN Growth Capital Program (GCP) purchases up to 25% of an eligible loan and subordinates its interests to the participating lead bank, thereby increasing a borrower’s lending capability. The lead bank will service the loan as they normally would.

Growth Capital Program Structure • WSCN purchases up to 25% of a commercial loan, with a maximum purchase of $1, 000 • Subordinate to bank in the event of default • Pro rata participant during term of the loan • WSCN’s effective interest rate is 0. 25% less the lead bank’s • Maximum term of 10 years • WSCN fee of up to 1% of total loan amount • Fee is a weighted average of the participation percentage and loan term • WSCN pays a 0. 25% servicing fee based off of the interest portion from each payment to the lead bank

Eligible Commercial Loan Types The additional risk that WSCN inherits is within the spirit of the program. WSCN provides increased collateral coverage and allows lending institutions to close loans that they would like to make, but cannot due to lack of collateral. • Real estate purchase and construction • Equipment • Revolving lines of credit • Business asset purchases • Leasehold improvements • Non profits • No SBA or other federal funding sources, but can do interim financing before 504 funding

Growth Capital Program Process • Operating at the speed of business • Quick turnaround of application – 5 business days or less • Short application, with a request for the bank credit memo • WSCN docs: Commitment Letter, draft of Participation Certificate, 2 WSCN Certifications • When a closing date is scheduled, 5 business days prior, provide us with drafts of final loan docs • Wire funds on closing day

Cumulative Summary of Accomplishments • • • 112 projects funded (97 Collateral Support and 15 Growth Capital) Loans made in 14 of the 17 municipalities Partnered with 14 lending institutions Original allocation of $13, 233, 019 Employed $16, 212, 204 of collateral support funds and $1, 293, 622 growth capital funds for a total of $17, 505, 826 in credit support. Leveraged a total of $77, 914, 885 in debt investment in WY businesses A ratio of 5. 89 to 1 (for every dollar deployed by WSCN, $5. 89 was invested by lending institutions) Projected to create 337 full-time and 252 part-time jobs for Wyoming citizens, which translates into approximately $14. 8 million in new wages 3 loan losses total - less than $100, 000 was lost

Cumulative Summary of Accomplishments CSP • • • 97 projects funded to 83 Wyoming companies Loans made in 14 of the 17 municipalities Partnered with 14 lending institutions Original allocation of $13, 233, 019 Employed $16, 212, 204. 91 of collateral support funds and $720, 376 growth capital funds for a total of $16, 595, 108 in credit support. Leveraged a total of $72, 488, 415. 91 in debt investment in WY businesses A ratio of 5. 48 to 1 (for every dollar deployed by WSCN, $5. 48 was invested by lending institutions) Projected to create 323 full-time and 239 part-time jobs for Wyoming citizens, which translates into approximately $12. 8 million in new wages 3 loan losses total - less than $100, 000 was lost

Growth Capital Program Summary of Accomplishments • July, 1 2018 inception • 15 projects funded for 12 Wyoming companies • Sum of Bank Loans: $5, 426, 470 • Sum of Growth Capital Participation Funds Deployed: $1, 293, 622 • Leverage: 4. 20 • Full & Part-Time Jobs Created: 14 • Full & Part-Time Jobs Retained: 13 • Estimated New Wages: $951, 700

Wyoming Optical, Inc. Casper, WY • • ANB Bank $600, 000 Loan $150, 000 Collateral Support Purchase and renovate a gas station into an optometry office • 6 full time jobs retained

Wyoming Otolaryngology, P. C Casper, WY • • Jonah Bank of Wyoming $2, 242, 000 Loan $500, 000 Collateral Support Construct and equip a new medical clinic at the Platte River Commons (prior Amaco refinery) • 6 full time jobs retained

Partner Banks

Another resource: Council of Development Finance Agencies • CDFI - https: //www. cdfa. net/ • Related article: Casper Hotel and Conference Center – Roadmap to Redevelopment. https: //www. cdfa. net/cdfaweb. nsf/ordredirect. html? open=open &id=201901_Casper_Roadmap_Redevelopment

Thank You Contact: Kendall Hutchinson Wyoming Smart Capital Network 307 -315 -8832 khutchinson@dcnteam. com Visit www. wyosmartcapital. com