prep my cdfi!

Prep My CDFI!:Increase Performance and Impact

and get the CARSTM Rating You Deserve!

Facilitated by:Jason Friedman * Catherine MeyratBarbara Eckblad * Leslie Hoffman

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Friedman Associates

• We specialize in building sustainable nonprofit organizations that help low-wealth individuals & communities create jobs and small businesses. 

• Mission: inspire nonprofit leaders to achieve their vision for the entrepreneurs and communities they serve - and demonstrate the results that lead to increased funding and long-term success.

Areas of Specialization• Organizational assessment• Assessment of Financial Products and

Development Services • Product development and staff training • Develop systems for client tracking and program

performance• Strategic planning• Board development and • Fund development strategies.

Meet the Prep My CDFI! Team

Who Is The Prep My CDFI Team?

Project ManagerJason

Strategy & Systems SpecialistCatherine

Loan Program SpecialistBarbara

Operations SpecialistLeslie

Catherine Meyrat • Core expertise: operations assessment; strategies to

improve process and strategy; analyze operational costs; develop pricing strategies for loan products and earned income ventures; new loan product development; and using technology to scale operations.

• Created a new, standardized risk assessment to enable Accion Texas to increase loans to under-banked and startup businesses and reduce loan process from 2 months to 1 week.

• Oversaw expansion of Microloan Management Services (MMS), a loan origination software and underwriting platform. 

• Former VP of Strategy at Accion Texas, the largest microlender in the U.S.

Leslie Hoffman

• Core expertise: Senior-level positions overseeing microloan and small business lending, client service and technical assistance, loan underwriting, portfolio management and loan collections, sales team development and management, staff recruitment and training, business development and community outreach, corporate fundraising.

• Led Accion New Mexico’s expansion into Arizona and Colorado to become the nation’s 4th largest microlender.

• Program performance focus with strategic planning and process improvement expertise.

Barbara Eckblad

• Core expertise: scaling loan programs; portfolio management; aligning of staff, products and systems; new product development/expansion; earned income strategies; loan operations systems; technical assistance deployment; building collaborations.

• Director of Lending for Wisconsin Women's Business Initiative Corp. where she oversaw all aspects of the loan fund and grew the loan portfolio by 67% over 3 years and decreased delinquency rates to below-industry standards.

• Small business ownership experience, including building an innovative commercial and residential real estate firm from start-up to largest market share, eventually transitioning the firm to employee ownership.

Agenda

• What is CARSTM?

• What is Prep My CDFI?

• How will it prepare me for CARS?TM

• When is it time for Prep My CDFI ?

• How much does it cost?

What Is CARSTM?

The CDFI Assessment and Rating System (CARSTM) is the industry’s independent, third-party rating of impact performance and financial strength.

A CARS™ assessment includes past performance, current financial position, and risk factors in the future. Ratings are based on five years of historical performance.

With CARS™, investors have enhanced transparency, experience greater efficiency, and make smarter investments. Leading community development finance institutions CDFIs are rated.

Context• The trend is clear: More investors require CDFIs to

produce positive financial returns and data that demonstrate long-term impacts.

• Benefits of Impact Measurement* Contribution to operational excellence and internal

tracking. Influence the policies and practices of government

officials and agencies, banks, foundations, community development practitioners.

Contribution to regulatory and investor compliance. Competitive advantage.

Solidifying the Business Case for CDFI Nonfinancial Performance Measurement, Ben Thornley, Pacific Community Ventures in Community Development INVESTMENT REVIEW, Federal Reserve Bank of San Francisco, pg. 53.

Are You Ready for CARS™?

• CARS™ is a demanding process, takes a significant amount of staff time, and takes 6 months to complete.

• A CDFI can be rated only once every three years.

• With so much on the line, why not invest now to assess your capacity and strengthen performance and impact?

Prep My CDFI! Process

Understanding CARSTM

Capacity Assessment:

impact performance and financial strength

Comprehensive Management

Report and SWOT

Preparing for the site visit

After the visit: Implementation

Preparing for a CARSTM renewal

When is the right time for Prep My CDFI!?

“We have funders who have asked if we’re going to get a CARSTM rating.”

“We think it’s time we go through the rating process but don’t know where to begin.”

“We’re signed up for CARS and just got our document request list. We need help!”

“We just received our rating and want to quickly remediate the issues the analysts identified.”

Seeking or in the Process of Obtaining a CARS™ Rating?

• Introduce management and board members to CARS™ philosophy and goals.

• What CARS™ will analyze and what that means for your CDFI, including impact, financial strength, and policy advocacy.

• Scan of your CDFI and its current capacity for working on CARS™

Prepare for CARS™ With Prep My CDFI! • Identify and review the documents you need for

CARS™ and your methods for tracking performance and outcomes.

• Review the questions CARS™ may ask about your required documents.

• Analyze your loan fund policies, procedures, and more to ensure that your CDFI has the backup documentation you need and which CARS™ requires.

• Management report and SWOT analysis (excellent feedback for strategic planning).

Up for CARS™ Renewal and Want to Improve Your Rating?

• Review CARS™ analysts’ report to identify areas of improvement.

• Management report and action plan for remediation.• Review and assess documentation required for CARS™ • Coordinate a strategy for the CARS™ visit.

Pricing

• The minimum fee is $5,000. Does not include a site visit.

• A one-day site visit is optional, but strongly encouraged.

• A moderately higher fee for CDFIs with a higher level of complexity. Determined after initial consultation.

• Additional support to improve or strengthen loan fund operations and impact/outcomes tracking and staff training is available.

Final thoughts..• What is my vision for our

CDFI?• How important is it to meet

and demonstrate industry standards?

• How can I use a CARS™ rating to our advantage?

• Can I benefit from industry experts who know the process and can guide me through it?

Let’s Take Your Questions!

Contact

Jason Friedman, PrincipalFriedman Associatesjasonj@friedmanassociates.net 319-341-3556www.friedmanassociates.net