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We have an exciting opportunity we’d like to announce to our credit unions. The Florida Capital Access Program (FL-CAP) is a new program developed by the Florida Department of Economic Opportunity (DEO), in conjunction with the federal government. The FL-CAP will work with credit unions and other eligible financial institutions (Lenders) to increase capital opportunities for entrepreneurs and small businesses who might not otherwise qualify for conventional financing. The FL-CAP aims to build the Florida economy by allowing more small businesses to expand their operations and create new jobs. The League will be hosting a webinar in conjunction with the DEO on Monday, April 10 at 10 a.m. To register for the webinar, please go to:

FL-CAP provides matching loan loss reserves for loans that fall just outside a lending institution’s normal underwriting standards, by depositing the funds into a pooled account at the participating Lender’s institution. It is expected to enable up to $200 million in business lending. Businesses located in Florida with 500 or fewer employees are eligible for loans under the program. The maximum loan amount is $5 million. Loans may be used to finance any business purpose including start up costs, working capital, business procurement, franchise fees, equipment, inventory, as well as the purchase, construction renovation or tenant improvements of an eligible place of business that is not for passive real estate investment purposes. Nonprofits must have sustainable financial operations. The program has some limitations on passive real estate and refinancing of existing debt. The FL-CAP will be funded at $20.6 million over the next 2 years. Gov. Rick Scott designated the DEO to administer the Florida program. Lenders All federally and state insured credit unions are eligible under the FL-CAP. Lenders are solely responsible for approving all loans, setting their terms and deciding a loan loss reserve premium fee to be shared by the lender and borrower, and matched by FL-CAP. To participate in FL-CAP, a Lender must sign a Lender Participation Agreement with DEO. Small Business Owners For information on loan opportunities, small business owners should inquire at an eligible Lender about participation in FL-CAP. Eligible Lenders are federal and state insured credit unions, federally insured banks, and Community Development Financial Institutions (CDFIs). Lenders information is available by sending an e-mail message to: For more information To learn more about the Florida Capital Access Program, contact Brook Pace, at (850) 717-8519 or at or at How the Program Works

The FL-CAP uses a “loan portfolio insurance” concept. Each participating Lender builds a separate loan loss reserve (the “Reserve Fund”) through fees collected from the Lender/Borrower and matched by FL-CAP. The performance of any one Lender will not affect the performance of others. Moreover, the Reserve Fund is not specific to individual loans, but is used to offset all or part of a loss on any enrolled loan in a participating Lender's FL-CAP loan portfolio. Steps to Participate in FL-CAP  The Lender and the DEO execute the Lender Participation Agreement.  Lender designates primary and secondary FL-CAP contacts.  Lender designates a primary contact to answer any banking questions.  DEO designates primary and secondary contacts.  A Reserve Fund Account is established.  Lender is account holder.  Account must be an interest bearing account, which will not incur service charges.  Lender provides signature card and account resolution.  Lender makes a loan to an eligible borrower.  Lender, borrower and DEO contribute to a loan loss reserve fee (ranging from 2 percent to 7 percent) established by Lender and borrower. Building a Reserve Fund Lender enrolls $5,000,000 in loans within the FL-CAP with an average of reserve fee of 3 percent. Lender/Borrower Reserve Fees: DEO Matching Reserve Fees: Total Reserve Fund Available:

$5,000,000 X 3.0% = $5,000,000 X 3.0% =

$150,000 $150,000 $300,000

The Reserve Fund can be accessed at charge off for any claims, three (3) months accrued interest, and up to one-half (1/2) of all collection costs.