U.S. SMALL BUSINESS
ADMINISTRATION![](media/image1.png){width="1.1555555555555554in"
height="1.1729166666666666in"}

P.O. BOX 000, ROOM 999

FEDERAL BUILDING, U.S. POST OFFICE

657 ANY AVENUE

NEW CITY, NORTH KANTUCKY 0000-0000

**TO:** A. B. McConnell, Jr. Chief, 504 Loan Program Branch

**THRU:** John Doe, District Director

**THRU:** Jane Doe, District Counsel

**FROM:** John Smith, Lender Relations Specialist

**DATE:** May 44, 2008

**SUBJECT:** Blank Certified Development Corporations (BCDC) Annual
Review

**CDC:** Blank Certified Development Corporation

123 Any Street, Suite 500

Sometown, KT 00000

V (555) 555-5555 F (555) 555-1234

Email: [info@blankcdc.com](mailto:info@dakotacdc.com)

**Staff:** Executive Director Name

Marketing principal Name

Packaging Principal Name

Servicing Principal Name

John Smith replaces Samantha Smith who has left the CDC.

**CDC Operations:**

A. [Program activity]{.underline} (CDC Fiscal Year)

1\. How many 504 loans were approved 00

2\. How many 504 loans were closed 00

3\. How many jobs are anticipated to be created

or retained for projects closed in the last two years. 0,000

What is the average debenture investment per job? \$00,000

4\. Did the CDC package other in SBA loans, how many? 0 Microloans

5\. Did the CDC package non-SBA loans, how many? 0 Rural Development

6\. Did any of the CDC's 504 loans become delinquent by

two or more payments, how many? 0

7.  Did the CDC initiate servicing actions and

> informing SBA of problems, status and actions? Yes, Fresno CLSC

8.  Did the CDC follow up with this problem loans and

> document efforts towards workout, deferment or
>
> assumption in cooperation with SBA? Yes, Fresno CLSC

B. [CDC Organization]{.underline}

1\. If CDC staff changes were made, were you provided

copies of SBA 1081, fingerprint card and résumé? Yes

2.  Has the CDC reported changes in the membership of its

> board of Directors and general membership? No changes

3.  Are there any indications of control being vested in a

> small group which might impair the CDC? None

C. [CDC Financial Capability]{.underline}

1\. Are CDC financial statements in accordance with

GAAP? Yes, a full audit

2.  Are current year revenues and expenses consistent with

> those for prior years? Yes

a.  If the CDC lost revenue from one source, what

> was the source? NA

3.  Do they indicate that the CDC has financial capability to

> market, package and service the loans? Yes

4.  Have any legal actions been filed were taken against the

> CDC? No

D.  [CDC Reports]{.underline}

> 1\. Was a CDC annual report filed in a timely manner? Yes

E.  [CDC Contracts for Professional Services (Notice
    5000-787)]{.underline}

> 1\. Does the CDC contract for professional services? Yes
>
> 2\. Was the contract submitted with the Annual Report? Yes
>
> 3\. Did the Field Office review the contract? Yes
>
> 4\. Is the contract in compliance with SBA's rules and
>
> regulations? Yes

**Overall Rating of CDC**

**A. A**ll CDC applications are submitted to the Sacramento Center and
they report:

> The applications submitted by Blank Certified Development Company are
> generally complete.  They are also of sound credit quality and within
> SBA's eligibility rules.  Their analysis of the packages is good. 
> They appear to be knowledgeable in both packaging of the loan and
> eligibility issues. Terry Bellmore, 504 Finance Manager, Sacramento
> Loan Processing Center 916-930-2475.
>
> A review of their application procedures indicated they are using
> industry developed software that generates appropriate SBA forms as
> well as credit comment and ratio analyses.
>
> B. **Closing Documents** District legal staff working with the Blank
> CDC report a good experience with the CDC as well as the attorney
> involved. There very few if any deficiencies.

C. **Servicing Actions** Gary Wamhoff with the Fresno Commercial Loan
Servicing Center reports the following:

> They do a good job, I wouldn\'t have an objection to a renewal of
> their ALP status. As an existing ALP, they have historically utilized
> their delegated unilateral servicing authority in a prudent manner. 
> They do a good job with supporting documentation (i.e., preparation of
> subordination agreements, etc).  The CDC is quick to call or e-mail
> with unusual scenarios. I see that they have \"passed\" all of the
> risk management benchmarks on their \"at a glance\" report.

D. **Documentation Servicing Actions** Jane Doe is the staff member
primarily involved with servicing actions. She has provided a listing of
how their subsequent case files are organized with sufficient
documentation for all aspects of the loan making, servicing and closing
processes.

E. Existing staff is knowledgeable and capable to handle the functions
necessary for a successful CDC. I would rate them as very good.

**Comments** Jane Doe is staff member involved in servicing also is
being cross trained for loan origination work. John Smith is relatively
new to the staff and primarily involved in loan origination. He will be
cross trained also in the servicing aspects of the CDC operations.

**Problem Situations**

A. Have written comments been attached to this review? See the attached
audit and annual report.

B.  Has this review and comments been discussed with the CDC? The Board
    of Directors has requested a copy and it will be shared with them.

C.  Do you recommend that the CDC be **de**certified? No

Based on the above information Blank CDC is compliant with terms of the
SBA 504 loan program and its administration.