BUILDING NEIGHBORHOOD ECONOMIES FROM WITHIN. NDC 2014 ANNUAL REPORT

NEIGHBORHOOD DEVELOPMENT CENTER OVERVIEW:

NDC is a non-profit, community development financial institution that believes residents of low-income, inner city neighborhoods have entrepreneurial talent and energy that represent powerful assets available to help revitalize those communities.

NDC provides entrepreneur training, small business lending (and Islamically acceptable financing), business services and real estate incubators that help our clients start and grow vital small businesses – which in turn create jobs, provide needed goods and services, revitalize blighted properties, create community gathering places, and develop community role models…building the economies of their neighborhoods from within.

There are more than 500 alumni of NDC’s programs that have active businesses. These businesses have created over 2,285 jobs and return over $46 million annually to the economies of their own inner-city neighborhoods. According to a Wilder Study, 82% of our business owners with employees hire neighborhood residents. In 2014, 95% of our entrepreneurs in training are people of color, 51% are female and 43% are considered extremely low income. As economic disparities continue to increase, NDC has chosen a bottom up approach to building and maintaining communities by supporting small business owners.

%* of our businesses occupy a %* of our business owners hire % of our entrepreneurs in training are 60 building that was formally vacant. 82 neighborhood residents 95 people of color and 43% are considered extremely low income

OUR EFFECT ON THE COMMUNITY IN 2014

ENTREPRENEUR TRAINING DURING 2014, NDC AND ITS NEIGHBORHOOD PARTNERS OFFERED

TO OF 21 257 WHICH 231 ENTREPRENEUR ENROLLED ASPIRING COMPLETED TRAINING CLASSES ENTREPRENEURS THE TRAINING

NDC ALSO OFFERED FREE WORKSHOPS THAT WERE ATTENDED BY 278 BUSINESSES.

LOANS DURING 2014, NDC APPROVED 63 TOTALING $2.8 million LOANS TO SMALL BUSINESSES IN OUR TARGET NEIGHBORHOODS (UNIVERSITY AVE. ST. PAUL, EAST SIDE-ST. PAUL, LAKE ST.-, NORTH MINNEAPOLIS)

BUSINESS SERVICES (BOOKKEEPING, MARKETING, BRANDING, LEGAL COUNSELING, ETC.) IN 2014, NDC PROVIDED

6,000+ TO 328 HOURS OF TECHNICAL ASSISTANCE BUSINESSES IN HIGH-NEED TARGET NEIGHBORHOODS

REAL ESTATE DEVELOPMENT

NDC ASSISTED BUSINESSES ARE LOCATED IN AN NDC-OWNED INCUBATOR LOCATION (NDC HAS 7 INCUBATOR LOCATIONS).

WHAT MAKES NDC ONE OF A KIND?

ASSET-FOCUSED PARTNER DRIVEN NDC starts with the belief that all people have NDC’s commitment to working with community assets and talents and the ability to contribute partners enhances our services and helps us to better to a vibrant community. support our businesses long term. We work with a variety of community, business and ethnic/cultural CULTURALLY COMPETENT organizations to find and support entrepreneurs and NDC has a talented, diverse staff allowing it to business owners, and link their success to the effectively serve and communicate with a broad revitalization of their own neighborhoods. spectrum of clients with competence and sensitivity. Our work is primarily focused on low income, COMPREHENSIVE communities of color. NDC supports entrepreneurs and neighborhoods long term by providing wrap around services throughout PLACE BASED the life cycle of a business. NDC employs a comprehensive approach to neighborhood revitalization that is deliberate about concentrating on entrepreneurs in specific geographic areas, which breathes life into visible properties in the community.

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION (DECEMBER 31, 2014)

ASSETS

Cash and Cash Equivalents $853,768 Restricted Cash $2,249,178

Contributions receivable $50,000 Other receivables $253,647

Prepaid expenses $47,259 Loan receivables, Net of allowance for loan losses $3,560,516

Rental Properties and Equipment, Net $4,430,670 Property and Equipment, Net $17,310

Financing Fees, Net $23,762 Investment in Other Companies $81,998 Deposit $20,872

TOTAL ASSETS $11,588,980

LIABILITIES AND NET ASSETS

LIABILITES

Payables and other accruals $1,004,682 Loans Payable $8,888,091

TOTAL LIABILITES $9,892,772

NET ASSETS

Unrestricted net assets $646,208 Temporarily restricted net assets $1,050,000

TOTAL NET ASSETS $1,696,208

TOTAL LIABILITES AND NET ASSETS $11,588,980

STATEMENT OF ACTIVITIES (DECEMBER 31, 2014)

30% 1 REVENUE & 50% SUPPORT 2 3 30%

1 Grants and Contributions $972,442 2 Earned Income $998,320

3 Governemnt Revenue $1,308,777

TOTAL REVENUE AND SUPPORT $3,279,539

3% 1 16% 2 % 19 3 EXPENSES 23% 4 % 23 5 % 16 6

1 Microenterpreneur Training $424,674 2 Technical Assistance $624,518 3 Lending $431,665 4 Incubators Program $619,638 5 Management and General $519,688 6 Fund Raising $92,452

TOTAL EXPENSES $2,712,635

FUNDERS

FUNDERS Joseph Ring Allianz Life Insurance Company of N. America US Bancorp Foundation Carolyn H Roby The Victor & Christine Anthony Family Foundation University of ST. Thomas Barbara Roy The Bank of America Charitable Foundation, Inc. Valspar Foundation Bonnie Russ Central Corridor Funders Collaborative Wells Fargo Foundation of Samir Saikali Foundation Wells Fargo Bank Dean Sanberg The Jaye F. and Betty F. Dyer Foundation Western Bank A. William Sands F.R. Bigelow Foundation Metropolitan Transportation Network, Inc. Greg Sands The Fredrikson & Byron Foundation Robert Sands Hardenbergh Foundation INDIVIDUAL DONORS John Satorius Knight Foundation Jeffrey Alexander Jessica Savran Marbrook Foundation Catherine Allan Mike Scheisman Marquette Financial Companies Frank Altman Jon Schumacher The McKnight Foundation Brian Alton David Scott The Minneapolis Foundation Wade Anderson Vicki Shipley Northwest Area Foundation Felix K Ankel Patrick Sievert Otto Bremer Foundation Wendy Annis Brian D Singer Jay and Rose Phillips Family Foundation Anonymous Freweini Sium The Saint Paul Foundation Dean Bachmeier Michael Smith Securian Foundation Mary Kay Bailey Pat Smith Emil J. and Emily D. Slowinski Fund of The Saint Paul James Baillie Gordon M. & Doloresi I. Sprenger Foundation Terri Banaszewski Joyce L Starks Travelers Foundation Joan Barnes Bill Svrluga Trillium Family Foundation Kate Barr Juliana Tanning Twin Cities Local Initiatives Support Corporation Elizabeth Beck Mihailo Temali U.S. Bancorp Foundation John Bennett Matthew Thompson Valspar Foundation Jeff Benson Maria Totozintle Wells Fargo Foundation - Minnesota Glenn Bergman Ebisso Uka Western Bank Daniel Birru Haiyen Vang Kathy Bjerke Neeson Vang KEY GOVERNMENTAL PARTNERS Emily Blodgett Senssue Vang Joan & Segundo Velasquez City of Minneapolis – Department of Community Jeff Blodgett Lisa Boyd Andrew Vomhof Planning and Economic Development Teshite Wako City of St. Paul – Department of Planning and Economic Lance Brock Ellen Brown Kevin Walsh Development Pamela Wandzel Hennepin County Library Kari Canfield Cynthia Phil Waugh Rondo Community Outreach Library Ben Webster Small Business Administration Cicely Carr Julie Causey Stephen Wellington St. Paul Port Authority Steve Wellvang State of Minnesota – Department of Employment and Denise Chambers Michael Christenson Anne White Economic Development David Wiese Lending partners Cathy Connett Ingrid Culp Michele Willard African Development Center Treston Wold African Economic Development Solutions Greg and Janice Dames Mike Derus Noya Woodrich American Indian Economic Development Fund Elaine Wyatt City of Minneapolis Michael Dickson City of Saint Paul Dean Dziasek STAFF: Latino Economic Development Center Cristina Edelstein Metropolitan Consortium of Community Developers Paul Engh Jeff Alexander, Director of Real Estate Metropolitan Economic Development Association Steve Erdall Darrell Beauford, Real Estate Accounting Manager Minnesota Black Chamber of Commerce Dwayne Etheridge Daniel Birru, Accountant Women Venture Paul Fate Cicely Carr, Training Administrator Real estate partners Michael Finkelstein Isabel Chanslor, Director of NDC Business Lab Aurora Saint Anthony Neighborhood Development Terri Fleming Sarah Emmel, Loan Fund Administrator Corporation (University & Dale) Dan Flicek Denise Favors, Senior SBA Loan & Business Cooperativa del Mercado Central (Mercado Central) Jamil Ford Development Officer East Side Neighborhood Development Company Barbara Louise Forster Elizabeth (Becky) George, Cultural Events and Property (Swedish Bank) Margo Geffen Manager Episcopal Homes (University & Dale) John Gelderman Harvey Hoffman, Building Operations Manager Greater Frogtown Community Development Corporation Becky George Ben Johnson, Real Estate Project Developer (University & Dale) Steve Gibson Ryan Kidder, Lead Graphic Designer In the Heart of the Beast Theatre (Plaza Verde) Joshua Glenn & Susan E Roe Mike LaFave, Vice President & Chief Operating Officer Latino Economic Development Center (Plaza Verde) Ben Goldfarb Earlsworth Baba Letang, Market Manager Model Cities of Saint Paul (University & Dale) Manuel Gonzalez Mary Kuria, Client Manager & Business Advisor Powderhorn Phillips Cultural Wellness Center (Midtown Kevin Goodno Perla Mayo, Loan Officer & Business Advisor Global Market) Michael Angelo Goze Soon-Young Oh, Communications & Development Project for Pride in Living (Mercado Central) Douglas Gregory Officer Whittier Community Development Corporation Cay Shea Hellervick Phillip Porter, Loan Officer & Business Advisor (Mercado Central) Lindsay Herbert Samir Saikali, Manager of Grants & Data Community Development Financial Institution Fund Rick Heydinger Brian Singer, Director of Lending U.S.Small Business Administration JoAnna Hicks Emma Spillman, Training Coordinator & Office Manager Minneapolis Department of Employment and Economic Beth and Jeff Hvass Mihailo Temali, Founder & Chief Executive Officer Development Judy Jandro Bee Vang, Loan Officer & Business Advisor City of Minneapolis Nick Jellum Teshite Wako, Chief Financial Officer City of Saint Paul Steven Johnson Hennepin County Tadd Johnson BOARD OF DIRECTORS: Minneapolis Empowerement Zone Brian Kamin Arvid Povilaitis - Board Secretary, Chief Operating Rondo Community Outreach Library Tim Keenan Officer, Meritex Enterprises, Inc. Office of Community Services John Kimball Asad Aliweyd, Executive Director, New American State of Minnesota Omer Kissi Academy Michou Kokodoko Dennis Prchal, President, Western Insurance Agency TRAINING PARTNERS John Koneck Douglas Gregory ,Regional Vice President, The Travelers Marc Kotsonas African Career, Education & Resource, Inc. Companies, Inc. Brett Kramer Ed Padilla - Board Vice Chair, President & CEO, African Community Services Joseph D. Krueger African Economic Development Solutions NorthMarq Capital James W. & Gail O. LaFave Grover Jones - Board Vice Chair, Executive Director, Aurora Saint Anthony Neighborhood Development Mike LaFave Corporation Northside Economic Opportunity Network (NEON) Laurie LaFontaine Haiyen Vang, Small business owner, The Clearance Bii Gii Wiin Community Development Fund Liz Lambrecht Blake Road Corridor Collaborative Rack Becky Landon Jim Graves, CEO-Chairman, Graves Hospitality City of Saint Paul Dan Le Dayton’s Bluff Community Council Leigh-Erin Irons, Shareholder, Fredrikson & Byron, P.A. Tony Lemaire Long X. Yang, Executive Director, Hmong American Emerge Community Development Earlsworth (Baba) Letang Hamline Midway Coalition Mutual Assistance Connie Lewis Margo Geffen, Manager, Housing Development and Hmong American Mutual Assistance Association, Inc. Julian Loscalzo Hope Community Finance at Hennepin County Public Works Lorrie Louder Mary Mathews, Small business owner Neighborhood Development Alliance Rodney & Nancy Maeker New American Academy Muffie Gabler, Senior Vice President - Central Region Bridget Manahan Community Development, Wells Fargo North Hennepin Community College Bonnie Marshall Northside Economic Opportunity Network Noya Woodrich, President & CEO, Minneapolis Council Mary Mathews of Churches Maureen Michalski CORPORATE AND FOUNDATION Patti Tototzintle, CEO, Casa de Esperanza Lisa Middag Steve Gibson - Board Chair, Senior Vice President, US Allina Health System Maren Misner Bank Deluxe Corporation Foundation Juliet Mitchell Terri Fleming, Senior Vice President, Western Bank Fredrikson and Byron Foundation Mike Monson Vivienne Williamson - Board Vice Chair, Small business F.R. Bigelow Foundation Nneka Morgan owner, Mighty Stitch, LLC Goerge Family Foundation Kathy Moriarty Community Advisors: Local Initiative Support Corporation Ann Mulholland Repa Mekha, Executive Director, NEXUS Community Living Cities/The Integeration Initiative Ellen Muller Partners Hardenbergh Foundation Eric Muschler Tony Genia, Community Liaison Heron Foundation Rosemarie K. Ndupuechi Wafiq Fannoun, Executive Director, Islamic University Marbrook Foundation Andrew Nelson of Minnesota The Marquette Financial Companies John Neuchterlein William Sands, Retired Chairman, Western Bank Minneapolis Foundation Lisa Nicholson Otto Bremer Foundation Kim Norberg Allianz Life Insurance Company of N. America Sandra Oakes Nexus Community Partners Cheryl O’Donnell Northwest Area Foundation Soon-Young Oh Northmarq Capital Amy O’Neil Piper Jaffray & Cos Marcus Owens Pohlad Family Foundation Oyeronke Oyinloye Securian Foundation Ed Padilla Simikis Foundation Cheryl Paullin Trillium Family Foundation Trung M Pham The Jay & Rose Phillips Family Foundation Leila Poullada The Jaye F. and Betty F. Dyer Foundation Dennis Prchal The Mcknight Foundation Steve Quam John S. and James L. Knight Foundation Ben Rasmussen THE Emily J. & Emily D. Slowinski Fund Paul Rebholz The Saint Paul Foundation Dan Rickett Travelers Foundation John Ries

*2013 Wilder Research Evaluation; Research is Conducted Every Two Years.