GAP PROGRAM CAPITALIZATION SOURCES AS OF 09/15/06
CEII has relied heavily on our bank partners for their investments of loan capital which we utilize in the GAP loan program. Our partners include: Wachovia National Bank, AmSouth Bank, SunTrust Bank, Citizens & Peoples National Bank (and the Federal Home Loan Bank of Atlanta's EDGE Program), Bank of Pensacola, Compass Bank, Front Porch Program (Pensacola & Fort Walton Beach), and others. The total capital investment in the GAP program is $1,602,500, although $400,000 of that amount has never been re-paid to our bank partners.
SELF EMPLOYMENT LOAN FUND ("SELF") CAPITALIZATION SOURCES AS OF 01/01/05
As with the GAP program, banks have invested in our SELF loan program and have provided small grants which we have utilized to provide SELF loans. Our partners include: Wachovia National Bank, SunTrust Bank, Chase National Bank, Compass National Bank, Enterprise Florida's Microloan program, and the Front Porch Florida Program. The total capital invested in the SELF program is $92,500.
LOAN LOSSES
Virtually all of CEII's small and micro business loan clients would not have been eligible to receive a bank loan. This is often due to the start-up nature of many loan applications and also due to weaknesses in collateral and credit history.
Because CEII provides loans which banks do not, we lend in a high risk loan environment. Nonetheless, our cumulative loss rate of $12 Million in loans, over 30 years of lending activity, is still less than 5%.
We feel our low loss rate is due to the extensive training and technical assistance services which we provide to our clients and also to the due diligence we exercise in analyzing loan requests and minimizing, to as great an extent as possible, the risk of loss we assume with each and every loan.
