-Overview
The Advanced Revolving Loan Fund Course builds on CDFA’s Intro RLF Course by providing in-depth instruction on loan underwriting and portfolio management. Topics discussed during this course include analyzing borrower documents, performing financial analysis, and making loan decisions based on the mission and lending criteria of your RLF. In addition, attendees will learn principles for analyzing loan performance, balancing portfolio risk through borrower and industry diversity, and smartly managing RLF proceeds to create new lending programs. Given the advanced curriculum for this course, it is expected that attendees will already have some basic education about how revolving loan funds operate and have previously participated in underwriting loans.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Join us online, and start down the road to personal and professional advancement today.
Course Objectives
- Develop robust and nuanced loan underwriting skills
- Learn how to provide technical assistance to borrowers
- Create a methodology for making loan decisions based on mission
- Analyze and measure risk from multiple variables
- Sharpen portfolio management skills that strengthen RLFs
- Identify philosophies that can grow loan proceeds and build new programs
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Topics Covered
- Advanced underwriting techniques
- Analyzing borrower documents
- Performing financial analysis
- Evaluating risk
- Investment strategies
- Market analysis
- Using proceeds to build new programs
- Creative RLF strategies
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Who Should Attend?
- Loan fund managers
- Economic development professionals
- Community development professionals
- Government and nonprofit finance officers
- Legal counsel
- Underwriters
- Commercial bankers
- Accountants
- Financial advisors
- Policymakers
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Course Advisor
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Fawn Zimmerman
Council of Development Finance Agencies
Managing Director, CDFA Advisory Services
Fawn Zimmerman is Managing Director of CDFA Advisory Services in the Knowledge & Networks Division at the Council of Development Finance Agencies (CDFA). In her role, Fawn assists development finance agencies nationwide with strategic planning, ... finance program development, and obtaining CDFI certification. She also leads initiatives to enhance capital access for underserved communities. Fawn oversees the CDFA Equitable Capital Loan Guarantee Program, aimed at increasing funding for underserved small businesses, and the CDFA–NASDA Foundation Socially Disadvantaged Farmers & Ranchers Access to Capital Program, which focuses on building a comprehensive agricultural resource database, offering hands-on technical assistance, and developing culturally relevant programs to boost investment in socially disadvantaged farmers and ranchers.
Fawn holds a Bachelor of Arts with honors in Communication from The Ohio State University and has pursued postgraduate studies at Ohio University. Her career is deeply intertwined with her philanthropic goals, and she is committed to leveraging her creative, academic, and professional experiences to drive positive changes in the development finance sector. (More)
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-Agenda
Day 1
| 12:00 PM - 12:15 PM |
Welcome & Overview
Welcome participants, introduce CDFA, and set the stage for the course.
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| 12:15 PM - 1:30 PM |
Principles of Loan Underwriting
To start the Advanced Revolving Loan Fund Course, we will discuss the essential best practices for loan underwriting. This session will include a discussion about RLFs in the context of economic development, and how underwriting principles should be aligned to the RLF’s mission and communicated clearly to borrowers, staff, and loan committee representatives. This session will form the foundation for upcoming exercises and case study analyses of various underwriting scenarios.
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| 1:30 PM - 1:45 PM |
Break
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| 1:45 PM - 2:45 PM |
Evaluating Risk
Developing a philosophy around risk is a critical component of operating a successful RLF. This philosophy could encompass several elements, including borrower risk, credit risk, default risk, portfolio risk, industry risk, and many others. Often, these risks are perceived and can lead to investment bias. Balancing the reality of improving access to capital of underserved borrowers while also employing a growth mindset can be difficult. Identifying where your RLF lands along the compendium of risk will help you be able to do to the most good with the capital you have.
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| 2:45 PM - 3:00 PM |
Break
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| 3:00 PM - 5:00 PM |
Borrower Analysis
No two loans are alike, and rarely is a loan a “no-brainer”. Even with clear underwriting guidelines, conducting the financial analysis and due diligence process takes time and a skilled team. During this session, several case study examples will be provided and course participants will collectively evaluate the loan decision. Come prepared for debate, a robust conversation about character lending, and detailed analysis of financial statements.
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| 5:00 PM |
Adjourn
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Day 2
| 12:00 PM - 12:15 PM |
Revisiting Day 1
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| 12:15 PM - 1:15 PM |
Collecting Borrower Documents and Providing Technical Assistance
Every RLF should be governed by a set of approved guidelines, policies, and procedures. This is especially important for maintaining consistency throughout the application, review, and technical assistance process. Many technology platforms exist to help make this process efficient, but not even the best IT infrastructure can replace the essential human interaction between loan fund staff and potential borrowers. During this session, we will evaluate various application procedures and discuss how proactive communication with borrowers can aid the underwriting process.
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| 1:15 PM - 2:15 PM |
Investment Strategies
Your RLF is making loans and charging fees, borrowers are paying back principle with interest, accounts are revolving and growing. The most successful RLFs are regularly evaluating the strength of their account balances and making decisions about investing returns. At what point have you earned enough to be able to build a new loan program? During this session, we will evaluate investment policies and ongoing growth strategies.
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| 2:15 PM - 2:30 PM |
Break
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| 2:30 PM - 3:30 PM |
Portfolio Management
A robust RLF often encompasses several sources of capitalization along with a diverse set of borrowers. Managing reporting requirements, borrower payments, portfolio allocation, and constantly fluctuating accounts can sometimes feel like too many competing priorities. Identifying staff allocations and implementing consistent procedures can help maintain efficient operations and open up more time for long-term strategy and development. During this session, we will discuss portfolio management practices that work.
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| 3:30 PM - 3:45 PM |
Break
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| 3:45 PM - 5:00 PM |
Identifying Market Gaps in Your Community
Aligning your RLF to the needs of the businesses in the community you serve is a constantly moving target. As industries change, borrower profiles evolve, and political leadership shifts, market gaps may appear and new groups of underserved businesses emerge. During the last session of the course, we will discuss proactive strategies for keeping a pulse on the business community and developing strategic partnerships to ensure your RLF continues to be relevant. Topics include evaluating rates and fees, updating lending criteria, watching economic statistics, and building a lending culture that supports borrowers.
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| 5:00 PM |
Adjourn
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-Location
The Advanced Revolving Loan Fund Course will take place on Zoom. The course will meet each day from 12:00-5:00 PM Eastern. Attendees must have access to a computer and the internet to attend the course.
-Registration
This training course qualifies for the CDFA Training Institute's
Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
Scholarships are available to attend this event. Learn more about the
CDFA Scholarship Program,
and submit your application today.
CDFA permits only one person to log in and participate in the course. If multiple people are accessing the course without paying to attend, we will terminate the connection and access. CDFA offers group discounts for organizations that wish to register multiple people.
Register by ___ for Early Bird Rates.
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CDFA Member: $550
Non-Member: $825
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CDFA Member: $600
Non-Member: $875
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