Growth Capital Corporation

“Growth capital maintains a membership of at least 25 persons elected from each of the following four groups: (i) government; (ii) private sector lending institutions, (iii) community organizations; and (iv) business organizations.”

“If it is necessary to elect additional members, an appointed officer of the board shall notify the board chair who immediately appoints a committee from among the board. Nominations are reported and new members are elected at a meeting of the members where a quorum is present and by an affirmative vote by a majority of those members present.”

“The members elect the board of directors and new members.”

“The 990 is prepared by an independent cpa and then presented to the finance committee, finance staff, and the executive director for review and approval. The complete return is then electronically distributed to the board of directors for review prior to filing with the irs. An officer signs the 990.”

“Each year, the board members are asked to review the organization's conflict of interest policy. Among other things, the policy makes clear that all decisions of the board, officers, and employees of the organization are made solely on the basis of a desire to promote the best interest of the organization and the public good. The conflict of interest statement requests board members to identify to the best of their knowledge affiliations with organizations that may be potentially related to the financials or other substantive operations of the organization. They are also asked to identify circumstances involving either themselves, or a member of their extended family, that may be construed as a conflict of interest. At the staff level, the organization's personnel also ensure that there are no conflicts of interest when considering the engagement of a new vendor. If a potential conflict is identified, appropriate steps are taken to both assess the nature of the potential conflict and, subsequently, to ensure that the possibility of an actual conflict is mitigated. Such mitigation is managed and the letter and spirit of the conflicts policy are upheld.”

“The board of directors annually evaluates the performance of the executive director. Compensation is based on performance and compared to other state and national sba lenders as well as local banking industry compensation levels. The board of directors has adopted the irs-written "rebuttable presumption" checklist which is completed contemporaneous with the executive director's performance review.”

“Compensation for staff within the organization is determined by the executive director. Compensation is based on performance and compared to other state and national sba lenders as well as local banking industry compensation levels. This compensation is a component of the budget, which is reviewed and approved by the executive and finance committees and also by the board as a whole.”

“The organization's current governing documents, form 990 conflict of interest policy and financial statements are made available to the public upon request. The form 990 can also be found on several publically- accessible websites.”

“Growth capital certainly continued creating real value for small business with its loan activity. This year, we had 52 loans approvals and maintained the number one sba 504 and community advantage lender status in northeast ohio. While sba 504 lending in the district decreased last year, we were able to hold our own and increase our market share at 49% in the sba cleveland district with total project financing of 65mm. Growth capital had an excellent year with 35.6 million in approved loans which leveraged over 100 million in economic development investment in our communities during 2022. Our participation has adding significantly to the overall economic activity of our region with the potential to add over 439 new jobs for ohio workers. Loan closing production for fiscal year 2022 totaled 60 loans funded through september 30, 2022 with loan closing dollar volume reaching 29.7mm. The growth capital loan portfolio demonstrates the hard work being undertaken to support our economic development mission. Our portfolio growth and performance is indicative of our commitment to prudent credit underwriting as we take very seriously our fiduciary responsibility. Sound loan growth is our objective. The sept. 30, 2022 value of the growth capital loan portfolio was 130,286,446 with 418 active loans. Sba 504 - 350 loans community advantage - 96 loans during fiscal year 2022, there were 60 loan prepayments, amounting to 13,117,793.18, a 5.6% decrease over the previous year. The new loan activity over prepayments caused the portfolio to increase by 7,252,215.11 or 5.1%. Growth capital managed no loans in liquidation during fiscal year 2022. There were 0 charge-offs of loans in liquidation. As of fiscal 2022 year-end, growth capital has no loans in the process of being liquidated. As of 09/30/2022 growth capital had a delinquency rate of 14.6% compared to a peer group rate of 2.04%. For the fiscal 2022 year, the sba lender risk rating has risen to 4. In fy 2022: o growth capital made 59 loans totaling 29,445,000 to entrepreneurs, which supported 48,586,379 in additional investment o 39% of loans were made to women-owned businesses o 17% of loans were made to minority-owned businesses o 10% of loans were made to veteran-owned busine”

“Special event expense 0 special event expense 0”