2022-09-26T15:05:49-05:00 2021-12-31 221478099 COHNREZNICK LLP 7501 WISCONSIN AVENUE SUITE 400E BETHESDA MD 20814 990 2021-01-01 953512045 CDC SMALL BUSINESS FINANCE CORP CDCS 6192438600 2448 HISTORIC DECATUR 200 SAN DIEGO CA 92106 NATALIE GUNN CFO 6192438600 2022-11-15 1 NATALIE GUNN 999009999 LORI ROTHE YOKOBOSKY CPA P01273422 3016529100 2022-09-22 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z ELLIS CARR 2448 HISTORIC DECATUR 200 SAN DIEGO CA 92106 48168651 0 X WWW.CDCLOANS.COM X 1978 CA TO CHAMPION THE GROWTH OF DIVERSE SMALL COMPANIES IN OUR COMMUNITIES BY DRAWING ON OUR UNPARRELLELED EXPERTISE IN DELIVERING UNIQUE CAPITAL SOLUTIONS. 16 14 177 0 -123128 0 0 738955 6397665 23666619 383128 7034951 489804 297987 7270597 31738512 0 0 0 0 4360184 22555778 0 0 0 2374309 2469534 6734493 25025312 536104 6713200 280079202 123395668 221290577 57740847 58788625 65654821 X TO CHAMPION THE GROWTH OF DIVERSE SMALL COMPANIES IN OUR COMMUNITIES BY DRAWING ON OUR UNPARRELLELED EXPERTISE IN DELIVERING UNIQUE CAPITAL SOLUTIONS. WE EXCEED THE EXPECTATIONS OF OUR PARTNERS THROUGH TEAMWORK, INTEGRITY AND CREATIVITY. WE MAKE A DIFFERENCE IN THE COMMUNITIES WE SERVE THROUGH UNWAVERING ADVOCACY AND REINVESTMENT. 0 0 22640279 24127172 TO PROMOTE ECONOMIC DEVELOPMENT IN THE STATES OF CALIFORNIA, NEVADA AND ARIZONA, PROVIDE ASSISTANCE AND SERVICES FOR THE IMPROVEMENT OF LOCAL ECONOMY IN ALL COUNTIES AND REGIONS WHICH THE SMALL BUSINESS ADMINISTRATION GRANTS AUTHORITY TO OPERATE. 22640279 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 65 0 1 177 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 16 14 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X NATALIE GUNN 6192438600 2448 HISTORIC DECATUR RD NO 200 SAN DIEGO CA 92106 X ALAINA BEVERLY BOARD DIRECTOR 7.00 X 0 5000 0 BILL SOMMER BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 DAN VARNER BOARD DIRECTOR 7.00 X 0 3750 0 ELLIS CARR PRESIDENT & CEO 40.00 X X 0 725300 34203 ERIK CALDWELL BOARD DIRECTOR 7.00 X 0 3750 0 FRANK ROBINSON BOARD DIRECTOR 7.00 X 0 3750 0 GAIL MARKULIN BOARD DIRECTOR 7.00 X 0 5000 0 GARY CUNNINGHAM BOARD DIRECTOR 7.00 X 0 2500 0 GEORGIA DUTRO BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 GRACE CHIONUMA BOARD DIRECTOR 7.00 X 0 0 0 JERRY SCHNEIDER BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 JOAN EARHART BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 KEVIN PALMER BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 KRISTINE CHUNG BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 KURT CHILCOTT BOARD CHAIR & CONSULTANT 7.00 20.65 X 691892 216250 19097 MIKE STULL BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 OMAR PASSONS BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 OSWALDO ACOSTA BOARD DIRECTOR 7.00 X 0 2500 0 PEDRO GOITIA BOARD DIRECTOR 7.00 X 0 5000 0 RAY MONCRIEF BOARD DIRECTOR 7.00 X 0 5000 0 RICK BENITO BOARD DIRECTOR 7.00 X X 0 0 0 SHERYL CAMERON BOARD DIRECTOR 7.00 X 0 0 0 STEVE STULTZ BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 STEVEN DOSS BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 TIM TOPUZES BOARD DIRECTOR 7.00 X 0 3750 0 TYLER ORION BOARD DIRECTOR 7.00 X 0 3750 0 WAYNE SCHELL BOARD DIRECTOR (OUTGOING) 7.00 X 0 0 0 BRIAN MCEVOY GENERAL COUNSEL, CHIEF COMPLIANCE OFFICER 40.00 X 0 274183 11900 CATHERINE RIDDLE CFO - FORMER 40.00 X 118726 0 12012 JARET INGS TREASURER 40.00 X 0 254768 40988 KIM BUTTEMER COO 40.00 X 443353 0 43745 KIMBERLY DORSETT CHIEF HUMAN RESOURCES OFFICER 40.00 X 0 292399 48233 MICHAEL OWEN CCO 40.00 X 539781 0 29456 NATALIE GUNN CHIEF FINANCIAL OFFICER 40.00 X 0 461411 34974 ROBERT VILLARREAL CHIEF EXTERNAL AFFAIRS OFFICER 40.00 X 264461 0 22231 ERIN HEBERT SR. VP OF ADMINSTRATION 40.00 X 225182 0 34615 LAKISHA GANT VP 504 LOAN OPERATIONS 40.00 X 221867 0 16020 PENINA GOODMAN SR. VICE PRESIDENT OF MARKETING 40.00 X 200446 0 2807 SHELLI HAYMAN VP OF PRODUCTION SMART GROWTH BUSINESS DEVELOPMENT 40.00 X 192640 0 19500 TONY BARENGO SVP OF CREDIT 40.00 X 190903 0 17195 ARMEN MADATYAN SR. VP, BUSINESS DEVELOPMENT 40.00 X 448333 0 29655 CHRIS BANE VP, SENIOR COMMERCIAL LENDER 40.00 X 396599 0 42926 DEAN ALOE VP, SENIOR COMMERCIAL LENDER 40.00 X 664764 0 22835 KENNETH ROSENTHAL SR. ADVISOR FOR LENDING, EDUCATION AND TRAINING 40.00 X 256538 0 22835 THOMAS BRUNE PRESIDENT VENTURES LENDING 40.00 X 250879 0 27432 5106364 2268061 532659 49 0 1 0 TODD E KOBERNICK 2448 HISTORIC DECATUR RD STE 220 SAN DIEGO CA 92106 LEGAL SERVICES 899350 MLAN CONSULTING 3960 WPOINT LOMA BLVDH162 SAN DIEGO CA 92110 IT SERVICES 426799 CAMELBACK LAW OFFICERS 829 A MAIN STREET KERRVILLE TX 78028 LEGAL SERVICES 260100 RANDSTAD PO BOX 894217 LOS ANGELES CA 90189 STAFFING AGENCY 120024 PATHFINDERS EXECUTIVE SEARCH 321 GLEN DR DEBARY ORLANDO FL 92713 EXECUTIVE RECRUITMENT AGENCY 113300 5 738955 738955 LOAN INCOME 522210 23651318 23651318 LOAN ESCROW INTEREST 525990 15301 15301 23666619 5395361 5395361 203069 365635 -162566 -162566 -123128 -39438 17704094 16064504 1639590 1639590 1639590 PACKAGING FEES 900099 438847 438847 BAD DEBT RECOVERY 900099 16499 16499 TECH SUPPORT 900099 5207 5207 460553 31738512 24127172 -123128 6995513 3305929 3305929 14257385 14257385 2532099 2532099 1338081 1338081 1122284 1122284 1100498 1100498 295491 295491 447627 447627 208560 208560 449103 394736 54367 491856 491856 935478 935478 254644 254644 81700 81700 102435 102435 966326 966326 471495 471495 37163 37163 LENDING COSTS 538771 538771 PROVISION FOR LOAN LOSS 252968 252968 DUES & MEMBERSHIPS 240575 240575 PROPERTY TAXES 173377 173377 -4578533 -4599041 20508 25025312 22640279 2385033 0 22148642 18581745 11988681 14134280 6400890 4930780 223633994 72720456 2946016 2235772 12614679 6012963 6692277 6601716 4754439 2395924 1514263 1794995 280079202 123395668 3247541 5238071 127358 153272 203256935 50159736 14658743 2189768 221290577 57740847 X 58788625 65654821 58788625 65654821 280079202 123395668 6713200 152996 0 X 0 1 X 1 0 X 30250 738955 769205 19757135 20782652 22503672 6932403 24127172 94103034 19757135 20812902 22503672 6932403 24866127 94872239 0 0 0 94872239 534890 528618 548986 53588 5444626 7110708 534890 528618 548986 53588 5444626 7110708 20292025 21341520 23052658 6985991 30310753 101982947 0.93030 0.97580 0.06970 0.02420 X SCHEDULE A, PART III, COLUMN (D) 2020 THE AMOUNTS IN THIS COLUMN REPRESENT A SHORT YEAR FROM 10/1/2020 THROUGH 12/31/2020. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2300000 2300000 6966095 3307241 3658854 79438 75013 4425 3269146 2630709 638437 6601716 TENANTS RESERVE 12620 DEPOSIT LIABILITY 1037158 LEASE LIABILITY 1139990 2189768 X PART X, LINE 2: THE ORGANIZATION ELECTION TO CHANGE ITS EXEMPT STATUS FROM SECTION 501(C)(4) TO 501(C)(3) NOVEMBER 24, 2020. THE ORGANIZATION IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND SECTION 23701(F) OF THE CALIFORNIA REVENUE AND TAXATION CODE. CDC HAS A WHOLLY OWNED INTEREST IN SAN DIEGO REGION SMALL BUSINESS DEVELOPMENT ORGANIZATION, AN ORGANIZATION EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND SECTION 23701(F) OF THE CALIFORNIA REVENUE AND TAXATION CODE. CDC ALSO HAS A CONTROLLING INTEREST IN BANKERS, CDC VENTURES, AND CDC DIRECT CAPITAL, WHICH ARE WHOLLY OWNED FOR-PROFIT CORPORATIONS. BANKERS, CDC DIRECT CAPITAL, AND CDC VENTURES DID NOT HAVE ANY TAXABLE INCOME DURING THE YEAR, AND ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN MADE. FEDERAL AND STATE INCOME TAX RETURNS FOR FISCAL YEARS 2020, 2019, AND 2018 REMAIN OPEN. MANAGEMENT CONTINUALLY EVALUATES EXPIRING STATUTES OF LIMITATIONS, AUDITS, PROPOSED SETTLEMENTS, CHANGES IN TAX LAW AND NEW AUTHORITATIVE RULINGS. X X X X X 0 0 0 0 0 0 0 1 0 KURT CHILCOTT BOARD CHAIR & CONSULTANT 309021 0 0 216250 382871 0 13000 0 6097 0 710989 216250 0 0 ELLIS CARR PRESIDENT & CEO 0 725300 0 0 0 0 0 34203 0 0 0 759503 0 0 DEAN ALOE VP, SENIOR COMMERCIAL LENDER 116985 0 0 0 547779 0 13000 0 9835 0 687599 0 0 0 MICHAEL OWEN CCO 434331 0 47642 0 57808 0 13000 0 16456 0 569237 0 0 0 NATALIE GUNN CHIEF FINANCIAL OFFICER 0 461411 0 0 0 0 0 33549 0 1425 0 496385 0 0 KIM BUTTEMER COO 312425 0 75430 0 55498 0 13000 0 30745 0 487098 0 0 0 ARMEN MADATYAN SR. VP, BUSINESS DEVELOPMENT 124895 0 0 0 323438 0 9750 0 19905 0 477988 0 0 0 CHRIS BANE VP, SENIOR COMMERCIAL LENDER 73874 0 0 0 322725 0 9750 0 33176 0 439525 0 0 0 KIMBERLY DORSETT CHIEF HUMAN RESOURCES OFFICER 0 292399 0 0 0 0 0 28264 0 19969 0 340632 0 0 JARET INGS TREASURER 0 254768 0 0 0 0 0 25510 0 15478 0 295756 0 0 ROBERT VILLARREAL CHIEF EXTERNAL AFFAIRS OFFICER 176814 0 45360 0 42287 0 13000 0 9231 0 286692 0 0 0 BRIAN MCEVOY GENERAL COUNSEL, CHIEF COMPLIANCE OF 0 274183 0 0 0 0 0 11900 0 0 0 286083 0 0 KENNETH ROSENTHAL SR. ADVISOR FOR LENDING, EDUCATION A 100573 0 0 0 155965 0 13000 0 9835 0 279373 0 0 0 THOMAS BRUNE PRESIDENT VENTURES LENDING 176538 0 36110 0 38231 0 12409 0 15023 0 278311 0 0 0 ERIN HEBERT SR. VP OF ADMINSTRATION 162816 0 38292 0 24074 0 13000 0 21615 0 259797 0 0 0 LAKISHA GANT VP 504 LOAN OPERATIONS 120680 0 35115 0 66072 0 2249 0 13771 0 237887 0 0 0 SHELLI HAYMAN VP OF PRODUCTION SMART GROWTH BUSINE 110164 0 34860 0 47616 0 4500 0 15000 0 212140 0 0 0 TONY BARENGO SVP OF CREDIT 129148 0 31150 0 30605 0 9750 0 7445 0 208098 0 0 0 PENINA GOODMAN SR. VICE PRESIDENT OF MARKETING 134090 0 38307 0 28049 0 0 0 2807 0 203253 0 0 0 PART I, LINE 7 THE ORGANIZATION SETS OVERARCHING CORPORATE STRATEGIC PERFORMANCE GOALS AND KEY METRICS FOR THE YEAR THAT ARE APPROVED BY THE BOARD OF DIRECTORS. INDIVIDUALS THEN DEVELOP INDIVIDUAL PERFORMANCE GOALS AS APPLICABLE, LEVERAGING AND TYING INTO THE CORPORATE GOALS. THE BOARD OF DIRECTORS APPROVES A TOTAL BONUS POOL TO BE ALLOCATED AMONGST EMPLOYEES AT THE DISCRETION OF MANAGEMENT IN CONCERT WITH EVALUATIONS OF PERFORMANCE PER EMPLOYEE PERFORMANCE GOALS. FORM 990, PART VI, SECTION A, LINE 1A THE ORGANIZATION HAS AN EXECUTIVE COMMITTEE FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION'S EXEMPTION UNDER 501(C)(3) IS EFFECTIVE NOVEMBER 24, 2020 AS PROVIDED BY THE IRS, AND CONFIRMED IN AN UPDATED DETERMINATION LETTER. THE ORGANIZATION ARTICLES OF INCORPORATION AND BYLAWS HAVE BEEN UPDATED TO REFLECT THIS CHANGE. EFFECTIVE APRIL 1, 2021, CIP AND CDC SMALL BUSINESS FINANCE CORP. ("CDC") ALIGNED THEIR OPERATIONS UNDER ONE CHIEF EXECUTIVE OFFICER AND SUBSTANTIALLY OVERLAPPING BOARDS OF DIRECTORS. CAPITAL IMPACT PARTNERS AND CDC REMAIN AS SEPARATE LEGAL AND TAX ENTITIES WITH NO CONTROL OVER THE OTHER. CDC IS A CALIFORNIA NOT-PROFIT ORGANIZATION COMMITTED TO SERVING THE CAPITAL NEEDS OF SMALL BUSINESSES IN CALIFORNIA, NEVADA, AND ARIZONA. CDC IS A CERTIFIED DEVELOPMENT COMPANY CERTIFIED BY THE U.S. SMALL BUSINESS ADMINISTRATION. ITS MISSION IS TO CHAMPION THE GROWTH OF DIVERSE SMALL COMPANIES IN ITS COMMUNITIES THROUGH ADVOCACY AND LENDING SERVICES. CDC ARRANGES INDUSTRIAL AND COMMERCIAL REAL ESTATE, AND BUSINESS DEVELOPMENT LOANS FOR SMALL BUSINESS COMPANIES LOCATED THROUGHOUT THE STATES OF CALIFORNIA, NEVADA, AND ARIZONA. CIP AND CDC CROSS GUARANTEE MOST OF THE OTHER PARTY'S DEBT, AND ARE CO-BORROWERS ON OTHER OBLIGATIONS TO ENABLE EACH ORGANIZATION TO BENEFIT FROM THE COMBINED FINANCIAL STRENGTH OF BOTH ORGANIZATIONS. CIP AND CDC HAVE SUBSTANTIALLY OVERLAPPING EXECUTIVE MANAGEMENT TEAMS WITH ELLIS CARR, CAPITAL IMPACT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER, SERVING AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOTH ORGANIZATIONS. THE TRANSACTION CLOSED ON JULY 15, 2021. FORM 990, PART VI, SECTION B, LINE 11B THE CHAIR OF THE AUDIT COMMITTEE REVIEWS THE FORM 990 WITH CDC SMALL BUSINESS FINANCE'S CHIEF FINANCIAL OFFICER, CONTROLLER AND TAX PREPARER BEFORE IT IS SUBMITTED TO THE AUDIT COMMITTEE. THE AUDIT COMMITTEE THEN INDEPENDENTLY REVIEWS AND APPROVES THE FORM 990 PRIOR TO FILING. THE CHAIR OF THE AUDIT COMMITTEE REPORTS ON THE PROCESS AND FINDINGS OF THE AUDIT COMMITTEE AT THE NEXT REGULARLY SCHEDULED MEETING OF THE BOARD OF DEIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C THE GENERAL COUNSEL AND THE ETHICS OFFICIAL DESIGNATED IN THE CODE OF CONDUCT AND ETHICS POLICY JOINTLY EVALUATE ALL CONFLICTS OF WHICH THEY BECOME AWARE AND SUBMIT SUCH CONFLICTS FOR RESOLUTION TO THE BOARD'S AUDIT COMMITTEE, IF NECESSARY. MINUTES REFLECTING ALL MEETINGS HELD AND ACTIONS TAKEN BY THE AUDIT COMMITTEE, INCLUDING WITH RESPECT TO CONFLICTS MATTERS, ARE INLCUDED IN THE COPORATE RECORD BOOK. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS HAS DELEGATED THE REPSONSIBILITY FOR REVIEWING AND MAKING RECOMMENDATIONS WITH RESPECT TO EXECUTIVE COMPENSATION TO ITS EXECUTIVE COMMITTEE (THE "EXECUTIVE COMMITTEE"), PURSUANT TO THE BOARD AND COMMITTEE RETAINED AUTHORITY AND DELEGATION OF AUTHORITY TO MANAGEMENT AND THE EXECUTIVE COMMITTEE CHARTER. THE EXECUTIVE COMMITTEE REVIEWS THE COMPENSATION OF THE EXECUTIVE OFFICERS OF CDC SMALL BUSINESS FINANCE; THE EXECUTIVE COMMITTEE THEN REPORTS ITS PROCESS, FINDINGS AND RECOMMENDATIONS TO THE BOARD OF DIRECTORS FOR INDEPENDENT REVIEW AND APPROVAL BY THE BOARD OF DIRECTORS. THE PROCESS INCLUDES: MAKING THE PROCESS OF COLLECTING AND REVIEWING MARKET DATA FOR THE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND THE REST OF THE EXECUTIVE MANAGEMENT TEAM; PERIODICALLY ENGAGING INDEPENDENT CONSULTANTS TO PERFORM INDEPENDENT MARKET ANALYSIS; EVALUATING THE PERFORMANCE OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER; AND RECOMMENDING ANNUAL EXECUTIVE-LEVEL COMPENSATION AND INCENTIVES (IF ANY) TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST AT THE CORPORATE OFFICE. FORM 990, PART VII, SECTION A: KURT CHILCOTT IS PROVIDED COMPENSATION FOR CONSULTING SERVICES PROVIDED TO CDC AND CIP. SAN DIEGO REGION SMALL BUSINESS DEVELOPMENT 2448 HISTORIC DECATUR RD 200 SAN DIEGO CA 92106 330845173 PROVIDE ECONOMIC DEVELOPMENT TO SMALL BUSINESSES IN SAN DIEGO CA 501(C)(3) LINE 7 CDC SMALL BUSINESS FINANCE CORP 1 CAPITAL IMPACT PARTNERS 1400 CRYSTAL DRIVE 500 ARLINGTON VA 22202 521290127 COMMUNITY LENDING AND DEVELOPMENT DC 501(C)(3) LINE 7 N/A 0 CDC VENTURES 2448 HISTORIC DECATUR RD 200 SAN DIEGO CA 92106 330918531 SOFTWARE CA CDC SMALL BUSINESS FINANCE CORP C 1.00000 1 CDC DIRECT CAPITAL 2448 HISTORIC DECATUR RD 200 SAN DIEGO CA 92106 201904046 COMMERCIAL FINANCE CA CDC SMALL BUSINESS FINANCE CORP C 1.00000 1 BANKERS SMALL BUSINESS COMMUNITY DEVELOPMENT CORPORATION OF CALIFORNIA HISTORIC DECATUR 200 SAN DIEGO CA 92106 330517722 FINANCE CA CDC SMALL BUSINESS FINANCE CORP C 1.00000 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 CDC VENTURES P 3900000 CASH CDC DIRECT CAPITAL P 4000000 CASH CDC VENTURES D 3041695 CASH CDC DIRECT CAPITAL D 565337 CASH