Grow America Fund Inc

THE GROW AMERICA FUND, INC. ("GAF") HAS A PRIMARY MISSION TO CREATE ECONOMIC OPPORTUNITY, STIMULATE INVESTMENT, AND TO ENCOURAGE ENTREPRENEURSHIP IN LOW-INCOME COMMUNITIES BY FINANCING BUSINESSES AND ENTREPRENEURS THAT INVEST IN THOSE DISADVANTAGED COMMUNITIES, AND/OR CREATE JOBS FOR LOW-INCOME UNEMPLOYED AND UNDER-EMPLOYED INDIVIDUALS. GAF, A LICENSED U.S. SBA SMALL BUSINESS LENDING COMPANY, AND U.S. DEPARTMENT OF THE TREASURY CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION, PROVIDES ACCESS TO CAPITAL FOR BUSINESS EXPANSION STRUCTURED WITH LONGER AMORTIZATION TERMS AND LOWER INTEREST RATES. THESE LENDING TERMS SERVE TO DECREASE DEBT SERVICE COSTS AND IMPROVE THE BORROWER'S OPERATING CASH FLOW, GIVING BUSINESSES A FINANCIAL ADVANTAGE THAT HELPS STRENGTHEN BOTH THE ECONOMIC BASE OF THE BUSINESS, AND THE COMMUNITY.

GAF PROVIDES LONGER TERM, LOWER INTEREST RATE SMALL BUSINESS LOANS THAT ENABLE SMALL BUSINESSES TO CREATE JOBS, STIMULATE INVESTMENT, AND EXPAND THE ENTREPRENEURIAL AND SMALL BUSINESS BASE IN LOW-INCOME COMMUNITIES. GAF HAS ASSISTED MORE THAN 750 SMALL BUSINESSES OWNED BY INDIVIDUALS PREVIOUSLY LACKING ACCESS TO APPROPRIATELY STRUCTURED FINANCING. OVER SIXTY-PERCENT OF OUR LOANS HAVE BEEN MADE IN CDFI-ELIGIBLE CENSUS TRACTS OR TO MINORITY BORROWERS. GAF NOT ONLY PROVIDES LOANS WITH FAVORABLE BELOW MARKET TERMS BUT ALSO PROVIDES INDIVIDUAL BUSINESS COUNSELING AT APPLICATION AND CONTINUING THROUGH THE ENTIRE TERM OF THE LOAN. LOANS MADE THROUGH THIS PROGRAM TOTAL OVER $485 MILLION. IN 2021, GAF VOLUME INCREASED AS A RESULT OF ITS LENDING ACTIVITY UNDER THE PAYCHECK PROTECTION PROGRAM (PPP). IN 2020 AND 2021 GAF PROVIDED $198 PLUS MILLION TO BORROWERS NATION-WIDE. LOANS WERE MADE TO BOTH FOR PROFIT AND NONPROFIT BORROWERS. OVER SEVENTY-FIVE PERCENT OF THE BORROWERS WERE EITHER MINORITY OR LOCATED WITHIN A CDFI ELIGIBLE CENSUS TRACT. LOANS OTHER THAN PPP ARE STRUCTURED TO FIT THE FINANCING NEEDS OF THE INDIVIDUAL BUSINESS AND CARRY BELOW MARKET RATES AND TERMS. TO ASSIST THE BORROWER, GAF CAPS CLOSING COSTS AND PROVIDES BUSINESS COUNSELING AT NO COST TO THE SMALL BUSINESSES. GAF LENDS IN DISTRESSED COMMUNITIES IN AN ELEVEN-STATE MARKET WHERE THE POVERTY LEVEL IS DOUBLE THE NATIONAL AVERAGE. ADDITIONALLY, GAF OPERATES ITS SMALL BUSINESS-LENDING PROGRAM IN FIVE OF THE TEN MOST DISTRESSED CITIES IN AMERICA. CLEVELAND OHIO, BUFFALO NEW YORK, NEWARK NEW JERSEY, CINCINNATI OHIO, AND SAN BERNARDINO CALIFORNIA, HAVE DISTRESS RATINGS RANGING FROM 93.6 TO 99.9 OUT OF 100 ACCORDING TO THE ECONOMIC INNOVATION GROUP DISTRESSED COMMUNITY INDEX (DCI). EIG USES EDUCATION (NO HIGH SCHOOL DIPLOMA), POVERTY RATE, ADULTS NOT WORKING, HOUSING VACANCY RATE, MEDIAN HOUSEHOLD INCOME, CHANGE IN EMPLOYMENT AND CHANGE IN ESTABLISHMENTS AS THE UNDERLYING METRICS TO DETERMINE A CITY'S LEVEL OF DISTRESS. BUSINESSES RECEIVING FINANCING FROM GAF HAVE CREATED AND/OR RETAINED OVER 42,500 JOBS, AND APPROXIMATELY SEVENTY PERCENT OF THOSE JOBS ARE CONSIDERED FILLED BY LOW AND MODERATE-INCOME INDIVIDUALS. OVER THE PAST SEVERAL YEARS, GAF HAS RECEIVED NATIONAL RECOGNITION FROM A VARIETY OF INSTITUTIONS:- THE U.S. SMALL BUSINESS ADMINISTRATION HAS ACKNOWLEDGED GAF AS A MISSION-BASED LENDER FOR CARRYING OUT OUR MISSION TO MAKE CREDIT AVAILABLE TO DISADVANTAGED BUSINESSES AND HELPING THOSE BUSINESSES TO SUCCEED THROUGH OUR TECHNICAL ASSISTANCE. GAF IS AN SBA PREFERRED LENDER. - IN RECOGNITION OF OUR WORK, THE CDFI FUND AWARDED OUR LOAN FUND MORE THAN $10 MILLION IN COMMUNITY FACILITY GRANTS TO CARRY OUT OUR MISSION.- IN THE EARLY 2000'S JPMORGAN CHASE MADE A $7 MILLION GRANT TO A CONSORTIUM OF SMALL BUSINESS LENDERS WORKING WITH DISADVANTAGED BUSINESSES IN LOW-INCOME COMMUNITIES IN CHASE'S COMMUNITY REINVESTMENT AREAS. GAF IS A MEMBER OF THE LENDING CONSORTIUM AND RECEIVED $2.3 MILLION OF THE $7 MILLION GRANT.- JP MORGAN CHASE, PNC BANK AND DISCOVER BANK SUPPORT OUR EFFORTS BY MAKING VERY LOW INTEREST LOANS AND GRANTS AVAILABLE TO US TO CARRY OUT OUR MISSION IN LOW-INCOME COMMUNITIES AND WITH DISADVANTAGED BUSINESSES.- THE LONGWOOD FOUNDATION, BALLMER GROUP, GREATER TACOMA COMMUNITY FOUNDATION, INHERENT FOUNDATION AND THE SEATTLE FOUNDATION HAVE MADE GRANTS AND PROGRAM RELATED INVESTMENTS (PRIS) AND GRANTS TO OUR SMALL BUSINESS LOAN FUND TOTALING MORE THAN $7 MILLION. BELOW ARE EXAMPLES OF DISADVANTAGED BUSINESSES THAT GAF'S SMALL BUSINESS LOAN FUND HAS RECENTLY ASSISTED:PAYCHECK PROTECTION PROGRAM LOANS: TRUE TREAD TIRES, AN AFRICAN AMERICAN WOMAN OWNED BUSINESS LOCATED IN DAVIE, FLORIDA. ONE IN FOUR PEOPLE LIVING IN DAVIE ARE CLASSIFIED AS LIVING AT OR BELOW THE FEDERAL POVERTY LEVEL. THE BUSINESS RECEIVED TWO DRAWS TOTALING $4,208. THE SMALL BUSINESS RECEIVED ITS FIRST DISBURSEMENT IN LESS THAN FOUR WEEKS AND RECEIVED THE SECOND DRAW IN LESS THAN THREE WEEKS. THE TIMELY RECEIPT OF THE LOAN ALLOWED THE BUSINESS TO REMAIN OPEN THEREBY RETAINING JOBS AND PROVIDING SERVICE TO THIS LOW-INCOME COMMUNITY. ANOTHER EXAMPLE IS LA BUSINESS PERSONNEL, A WOMEN-OWNED BUSINESS PROVIDING STAFFING SERVICES TO LA AREA BUSINESSES AND LOCATED IN A CDFI-DESIGNATED CENSUS TRACT. THE LOAN EXTENDED BY GAF SAVED 197 JOBS. THE BUSINESS RECEIVED A LOAN OF $832,337 AND THE FUNDS WERE IN THE BUSINESSES ACCOUNT IN LESS THAN FOUR WEEKS AFTER APPLYING. - GAF 7A LENDINGSBA GUARANTEED LENDING VOLUME WAS LOW IN 2021 DUE TO THE AVAILABILITY OF PPP LOANS. HOWEVER, GAF WAS ABLE TO LEND $12 MILLION TO 14 BORROWERS. INCLUDED IN THOSE 14 LOANS ARE: AFRICAN AND CARIBBEAN MARKET: THE MARKET IS LOCATED IN FT. LAUDERDALE, FLORIDA IN A CDFI ELIGIBLE CENSUS TRACT. THE BUSINESS OWNER IS AN AFRICAN AMERICAN WOMAN. THE STORE EMPLOYEES 15 FULL-TIME EMPLOYEES. THE $229,000 LOAN WAS USED TO MAKE LEASEHOLD IMPROVEMENTS AND PROVIDE PERMANENT WORKING CAPITAL TO THE BUSINESS. FIESTA MARTIN MANCHESTER: IS A FAMILY-OWNED AND OPERATED RESTAURANT LOCATED IN ENGLEWOOD, CALIFORNIA. THE RESTAURANT EMPLOYEES 21 FULL-TIME EMPLOYEES AND IS LOCATED IN A CDFI ELIGIBLE CENSUS TRACT. THE RESTAURANT WAS STARTED AND IS CURRENTLY OWNED BY A HISPANIC COUPLE. GAF PROVIDED A $2.27 MILLION LOAN THAT WAS USED ACQUIRE THE REAL ESTATE FOR THEIR NEW LOCATION. GAF'S PPP LENDING CREATED/RETAINED 16,515 JOBS AND GAF'S 7A LENDING CREATED/RETAINED 454 FULL-TIME JOBS. FIFTY-EIGHT AND THIRTY-NINE PERCENT OF GAF'S 7A AND PPP LOANS RESPECTFULLY, WERE MADE TO MWBE OWNERS. GAF'S 7A VOLUME ATTRIBUTED TO MWBE BORROWERS WAS $7 MILLION AND THAT PORTION OF OVERALL MWBE LENDING ATTRIBUTED TO PPP WAS $49 MILLION.