Glossary

Community Development Financial Institution (CDFI) - A private sector financial institution that focuses on personal lending and business development efforts in local communities. CDFIs can receive federal funding through the U.S. Department of the Treasury by completing an application. They can also receive funding from private sector sources such as individuals, corporations and religious institutions.

Co-Lending/Single Event Financing - Seedco Financial offers gap financing in partnership with banks or other lenders to support individual projects. The bank investor would be the senior lender in the project and Seedco Financial will take either a co-senior position or a subordinated position. Typical projects include real estate developments in low-income communities, often with involvement of community-based organizations. Investors in these projects should be open to the inclusion of Seedco Financial's "community covenants."

Community Development - Community development seeks to empower individuals and groups of people by providing these groups with the skills they need to affect change in their own communities. These skills are often concentrated around building political power through the formation of large social groups working for a common agenda. Community developers must understand both how to work with individuals and how to affect communities' positions within the context of larger social institutions.

ERF- Seedco Financial’s subsidiary CDE, called Empowerment Reinvestment Fund LLC (ERF), invests federal NMTC in projects that encourage economic development investment in low-income communities nationwide.

Equity Equivalent (EQ2) - Equity Equivalent (EQ2) investments typically take the form of 10-year subordinated debt with automatic renewal, a 100% balloon, and interest paid quarterly. Bank Investors are entitled to "leveraged CRA credits" and qualify under CRA Investment Test. EQ2 investments also entitle investors to pro-rata share of incremental community development loans made by the CDFI.

FICO Score - A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant's credit risk and whether to extend a loan.

Fisheries Assistance Center [FAC] – Located in Belle Chasse, Louisiana. The Center, the first and only one-stop resource center for fisheries in Louisiana, will provide financial assistance and comprehensive business services to commercial fishermen. The Center will support the commercial fishermen of St. Bernard, Plaquemines, Jefferson, and Orleans Parishes.

Growth Opportunity Loans & Services (GOLS) - is a unique financing and business assistance program, developed by Seedco Financial with funding from Goldman Sachs. The GOLS Program provides high-growth small businesses in New York City with affordable financing and comprehensive, hands-on professional business services and mentoring.

LMI – Refers to low- and moderate-income communities

Micro-economy - Microeconomics is primarily focused on individual businesses and their actions in accordance with "supply and demand" theory.

Micro-lending - Microlending is the practice of making small and unconventionally secured loans to those generally outside the banking system. That is: for people without collateral, a credit history, or demonstrable employment, it’s a way that they can get additional money to finance their small business.

New Markets Tax Credits (NMTC) - Seedco Financial's for-profit subsidiary, the Empowerment Reinvestment Fund (ERF) partners with banks to invest New Markets Tax Credits (NMTC) in anchor development projects. Bank partners can purchase credits (as a NMTC equity investor) and/or Bank can provide senior debt in NMTC projects. Seedco Financial as the parent organization provides financial and technical assistance along with NMTCs to enable the deal to move forward.

Program Related Investment (PRI) - Program Related Investments (PRIs) are typically 5- to 7-year notes with a full or partial balloon and with interest paid quarterly. Seedco Financial provides standard quarterly portfolio reporting and annual audited financial statements to the lender. For banks, a PRI to Seedco Financial will qualify under the CRA lending test. Seedco Financial also offers a match to local/regional PRI capital with national PRI capital on a $1-for-$1 basis.

Seedco Financial - Seedco is a national nonprofit organization that develops and oversees programs to create new economic opportunities for low- to moderate-income communities, as well as those recovering from disasters.

Social Impact- In business and government policy, social impact refers to how the organization's actions affect the surrounding community.

Traditional Loan Program- Seedco Financial’s baseline financing program with loan amounts of $50,000 - $250,000 for small businesses, not-for-profit organizations, and real estate developers.