You asked several questions regarding the Community Economic Development Fund's (CEDF) finances and operations.  The questions and answers follow.

We are still waiting for CEDF to provide information on its yearly administrative costs, job titles and salaries, and the typical interest rates for their loan products.

What is the history of state funding for CEDF?

The state has allocated about $15 million to CEDF since 1993. Table 1 shows the amount allocated by year, source, and purpose.

Table 1: History of State Funding for CEDF

Source: OLR report 2006-R-0610; Office of Fiscal Analysis

(1) $3 million capitalized the foundation; $7 million capitalized the corporation (Scilla, Dowling, & Natarelli, LLC, Certified Public Accountants and Consultants).

How many loans has CEDF issued by municipality in the past 3 years? What is the total value of loans of these loans?

Table 2 shows the geographic distribution of all outstanding CEDF loans by municipality as of December 2007. (We are still waiting for CEDF to provide loan amounts issued by municipality in only the past three years. CEDF stopped publishing data in its annual reports on loan amounts and closing dates by business after 2002.) Table 3 shows the total borrowers, new loans, outstanding loans, and loan commitments for these years. CEDF issued 40 new loans in 2007, down from a record 71 new loans in 2006. From 2005 through 2007, the total value of CEDF's outstanding loan commitments has ranged from $11.98 to $12.95 million.

Table 2: Geographic Distribution of CEDF Loans

Table 2: -Continued-

Table 2: -Continued-

Source: CEDF Annual Report 2007

Table 3: CEDF Loan Activity, 2005-07

Source: CEDF Annual Reports 2005-2007

What are CEDF's annual interest earnings on loans?

In 2007, CEDF earned $58,193 in interest on loans. This is up from $27,681 in 2006 and $43, 819 in 2005.

Does CEDF own a building? If so, how was it purchased and at what cost?

According to the Record Journal, CEDF paid $2.5 million for an 11,000-square foot building in Meriden in early 2008. The building is located at 965 East Main Street.

What is CEDF's current financial status and account balance?

CEDF's latest consolidated financial statements are for the 2007 calendar year (Appendix 1). Its account balance (i.e., fund balance) as of December 2007 was $11.35 million. Its assets totaled $14.87 million and its liabilities, $3.5 million. Its income and expense statements show that CEDF earned $1.88 million, spent $1.78 million, and had a balance of $98,113 at year end.

What are interest rates does CEDF typically charge on its loans? Does it charge any transaction fees for processing or administering loans?

According to its website, CEDF charges a 1-2% application fee for most of its loan products. Participants in the Small Business Administration's Micro Loan Program do not pay any fees but must reimburse CEDF for credit reports and make a $100 annual contribution towards technical assistance costs.

Table 4 includes the interest rate and application fee information listed on CEDF's website for each of its loan and loan guarantee programs.

Table 4: CEDF Loan Products: Interest Rates and Application Fees

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