The Ien Weekly Connection s5

------THE IEN WEEKLY CONNECTION ------April 9, 2007

In Today's Weekly Connection:

- Homeland Security Contracting Solutions - GSA Schedules - Angel Investing Continues Steady Growth - SBA's 504 Loan Program - Lender Orientation Schedule - SBA Illinois District Office - SBA Lenders Performance through March 31, 2007

Homeland Security Contracting Solutions - GSA Schedules Attached you will find details on the upcoming Homeland Security Contracting Conference entitled "Homeland Security Contracting Solutions - GSA Schedules" which will be held on Wednesday, April 25th at the Illinois Central College North Campus on 5407 North University Drive in Peoria.

Angel Investing Continues Steady Growth The University of New Hampshire's Center for Venture Research has tallied up the numbers on angel investing in 2006, and the news continues to be good. Organized angel investors invested $25.6 billion in 2006-a 10.8% over 2005. Overall, 234,000 angels backed 51,000 different firms last year. Both deal numbers (up 3%) and average deal size (up 7.5%) grew, thus offering further indications of a healthy angel market. Health care and medical devices are the top sector backed by angels, accounting for 21% of total investments. Other hot sectors include software and biotechnology. While most of the news is good, the Center's director, Jeffrey Sohl, does point to one potential warning sign. The market still includes a large proportion of "latent angels," i.e. individuals with sufficient net worth who have not yet made an angel investment. If the angel market hopes to continue its recent steady growth, more of these latent angels must move into the active investing category. Learn more about the University of New Hampshire Center for Venture Research report, 2006 Angel Market Analysis http://rs6.net/tn.jsp?t=bvash5bab.0.s76ai5bab.ildv4zbab.15253&ts=S0236&p=http%3A%2F %2Fwsbe.unh.edu%2FCenters_CVR%2F2006pressrelease.cfm

SBA's 504 Loan Program The SBA's 504 Loan Program offers many benefits to small businesses as well as to the participating Bank. When you are financing real property and improvements or the purchase of long-life machinery and equipment, the 504 Program should be given primary consideration.

The 504 loan program differs from the 7(a) guaranty loan program in that it focuses on fixed assets and it provides long-term, fixed rate financing at or below New York prime rate. The typical SBA 504 project includes; A loan from a private sector lender covering 50% of the project and the lender will get a first lien on the project's assets. A loan covering up to 40% of the project is advanced by the CDC, with 100% of that backed by an SBA-guaranteed debenture. The CDC/SBA takes a second lien position. And a contribution of 10% from the small business

The Community Developments Insights report describes the benefits to banks of offering 504 loans and addresses barriers to growth of the 504 loan product. Banks interested in learning more about 504 loans can use this edition's Resource Directory to obtain information on SBA regulations for the product and a listing of CDCs operating in their market areas. This Community Development Insights can be found at: http://www.occ.gov/cdd/Insights_2-06.pdf

The 504 program is operated by Certified Development Companies licensed by the SBA with the authority to operate in the entire state. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community through job creations. This is an excellent marketing tool for community reinvestment, demonstrating the number of jobs created/retained in your local communities. Illinois has seven (7) Certified Development Companies. Attached is a fact sheet on the 504 Program and a list of office locations of participating Certified Development Companies in Illinois.

The CDCs are the experts in the 504 Loan Program and will make the process relatively easy and quick.

Lender Orientation Schedule - SBA Illinois District Office Attached you will find the schedule for the regular Lender Orientation progams conducted by the Illinois District Office of the U. S. Small Business Administration in their Chicago Office at 500 West Madison, Suite 1250, in Chicago.

SBA Lenders Performance through March 31, 2007 The latest listing of SBA Lenders and their production through March 31, 2007 for FFY2007 is included in this newsletter as an attachment.

“Providing Guidance for Business Growth" ======The WEEKLY CONNECTION is distributed by the Illinois SBDC each Monday to the members of the DCEO Illinois Entrepreneurship Network to provide these service delivery partners with regular updates on small business issues, opportunities and resources. Please forward this update to any other interested resource providers and key stakeholders. www.ilsbdc.biz ======