Economic Development Finance Service

Certification Program

In 2004, EDFS launched the Certification Program in Small Business Loan Fund Management. Certification demonstrates loan fund staff professionalism and commitment to small business lending. The program is designed for any loan fund professional involved with small business loans.

To earn certification, participants must take all three core courses and pass the accompanying exams. If participants have taken similar courses through the National Development Council, they may test out of two of the three courses. In addition to the core course requirements, participants must take at least five credits of elective courses.

EDFS Training Archive

Core Courses:

Loan Fund Management Essentials (3 credits)
This highly rated class will provide a thorough overview of all aspects of fund management and lending, and uses in-class exercises and discussions, case studies, and sample documents that can be adapted for use in your office. The course is designed for organizations considering setting up a fund, new staff and board members, and loan fund partners. Experienced loan fund professionals will benefit from the best practices information.

Credit Analysis for Small Business Loan Funds (3 credits)
This hands-on class teaches you how to reduce the risks inherent in economic development lending by making lending decisions based on sound credit analysis techniques. Case studies of a variety of small businesses are used in hands-on exercises. Recommended course pre-requisite: Managing a Loan Fund (formerly Loan Fund Organization and Administration).

Structuring Deals Using Small Business Loan Funds (2 credits)
This class demonstrates how small business loan funds can play a pivotal role in leveraging public and private sector capital for businesses needing more than the loan fund can provide. Case studies teach participants how to structure deals using a range of capital options. Recommended course pre-requisite: Making Sound Lending Decisions (formerly Credit Analysis for Loan Funds).

Elective Courses:

Fund Design and Your Economic Development Strategy (1 credit)
Just as your borrowers compile a balance sheet, economic development organizations should have a list of assets and liabilities about their region. This class teaches you the importance of understanding your region's resources and how to structure your loan fund to best serve the needs of your region.

Strategic Loan Fund Management (2 credits)
Learn how to move beyond simply operating your loan fund to managing it. This class teaches you strategies for actively growing and safeguarding your fund so that it better serves the capital needs of your community.

Loan Fund Marketing (1 credit)
Increase deal flow and stakeholder support for your loan fund by learning effective marketing strategies. Brochures, press releases, Web text, and special events are covered.

Evaluating Business Plans (2 credits)
Making sound lending and investment decisions depends on thorough business plan analysis. This class is designed for loan fund staff, loan review committee members, economic development professionals and others responsible for reviewing plans from prospective borrowers and plans for proposed projects. Using actual business plans, in-class exercises, and discussions, this class covers all elements of a plan, what to look for, what questions to ask, and how to decide to move forward or not.

Analyzing Borrowers' Tax Returns (2 credits)
Small businesses often are unable to submit accountant-prepared financial statements, leaving loan fund staff with the task of reviewing only their tax returns to determine the business's ability to repay its loan. This class will improve your tax return- based credit analysis and servicing by reviewing the types of returns for each type of business (sole proprietorship, corporation, etc.) and how to analyze them using case studies and in-class exercises. Day One will focus on business tax returns, and personal tax returns for sole proprietorships and personal guarantors will be covered on the second day. This class will especially benefit loan fund staff whose portfolios include small businesses that are more likely to submit tax returns rather than accountant-prepared financial statements. Familiarity with credit analysis is recommended.

Essential Loan Documents (2 credits)
Understand the importance of proper loan documentation and the various documents needed for different types of loans. The course will review the steps needed to perfect your lien on different types of collateral, the importance of affirmative and negative loan covenants, what your commitment letter should and should not contain, an overview of the changes in UCC regulations, and certifications and assurances required by your funding agencies. Case studies will focus on compiling the needed documents for various types of loans, borrowers, and collateral. Recommended course pre-requisite: Managing a Loan Fund.

Working with Problem Loans (2 credits)
This class will teach you how to identify the red flags associated with problem loans and the steps required to assist your borrower as much as possible while protecting your loan fund. Issues related to writing off loans and bankruptcy will also be addressed. Recommended course pre-requisites: Managing a Loan Fund and Making Sound Lending Decisions.

EDA RLFs: Keys to Improved Compliance (1 credit)
With increasing program oversight, "by-the-book" administration of an Economic Development Administration (EDA) Revolving Loan Fund (RLF) has never been more important. Participants will learn how to navigate and comply with the full range of program requirements, covering such topics as support documentation for expenses, composition of good loan write-ups and documents, plus a review of the federal requirements that apply to RLF loans. This course is designed for organizations that currently administer the EDA RLF program or that are considering applying to do so.

USDA IRPs: Keys to Improved Compliance (1 credit)
The US Department of Agriculture (USDA) requires organizations that administer its Intermediary Relending Program (IRP) to comply with an array of programmatic requirements. USDA staff and our trainer Dana Sumner will walk you through these, which include such topics as the written work plan, Intermediary contribution, civil rights compliance, and staff experience in making commercial loans. They will also be available to answer your questions. This course is designed for organizations that currently manage USDA IRPs or that are considering applying to do so.

If you have already taken similar courses through EDFS or completed the National Development Council's (NDC's) Economic Development Finance Professional (EDFP) Certification Program, you are eligible to test out of two of the three EDFS core courses. For more information, contact Laurie Thompson at 202.624.5948 or lthompson@nado.org.

Disclaimer: The certification does not constitute EDFS' warranty or guarantee that those who have been certified are competent to practice as a loan fund professional.