1 00:00:04,700 --> 00:00:05,300 Welcome 2 00:00:05,300 --> 00:00:08,300 to the on demand course capitalization. 3 00:00:08,400 --> 00:00:11,833 This course is part of the Small dollar Consumer Lender Bootcamp. 4 00:00:12,666 --> 00:00:15,766 This training is provided by Credit Builders Alliance. 5 00:00:16,600 --> 00:00:20,500 CPA serves as a bridge between equity focused nonprofits 6 00:00:20,500 --> 00:00:23,666 and the credit industry to unlock credit as an asset for all. 7 00:00:24,600 --> 00:00:28,266 We offer technical services such as access to credit 8 00:00:28,266 --> 00:00:32,466 reports and credit reporting, access to capital through our CB, 9 00:00:32,766 --> 00:00:36,400 CDFI intermediary, CB fund, and capacity 10 00:00:36,400 --> 00:00:39,400 building for nonprofits and practitioners. 11 00:00:39,866 --> 00:00:43,266 This includes our Training Institute training series, webinars 12 00:00:43,500 --> 00:00:47,700 and toolkits, CPA finance, credit builders alliances. 13 00:00:47,766 --> 00:00:49,000 Community development. 14 00:00:49,000 --> 00:00:51,666 Financial institution intermediary. 15 00:00:51,666 --> 00:00:56,466 We help nonprofit lenders start or grow a small dollar consumer loan program to 16 00:00:56,466 --> 00:01:01,500 provide safe and affordable alternatives to predatory loans in their communities. 17 00:01:02,566 --> 00:01:05,566 We employ three prong approach of support 18 00:01:06,066 --> 00:01:09,233 loan capital, capacity building grants. 19 00:01:09,966 --> 00:01:11,033 Technical assistance. 20 00:01:12,166 --> 00:01:15,700 This course is part of the SDCL bootcamp. 21 00:01:16,133 --> 00:01:21,433 There are five other courses that also focus on SDCL loan product 22 00:01:21,433 --> 00:01:24,600 design, policies and procedures, 23 00:01:25,533 --> 00:01:29,766 underwriting, staff capacity marketing. 24 00:01:30,900 --> 00:01:34,100 While other courses may be mentioned in these video lessons. 25 00:01:34,133 --> 00:01:37,600 You do not have to take them to understand what is covered in this course. 26 00:01:38,033 --> 00:01:42,200 However, we do encourage you to take the SDCL courses 27 00:01:42,533 --> 00:01:47,200 that cover other operational areas as you develop an SDCL program. 28 00:01:47,766 --> 00:01:51,866 The learning objectives for this course are to learn the key elements 29 00:01:51,900 --> 00:01:55,333 and inputs of an SDCL capitalization plan. 30 00:01:56,333 --> 00:01:59,633 Consider the benefits and risks associated 31 00:01:59,633 --> 00:02:03,133 with different funding sources for an SDCL program. 32 00:02:04,100 --> 00:02:06,800 Understand the role that your loan funds risk 33 00:02:06,800 --> 00:02:10,166 tolerance and goals play and your capitalization plan. 34 00:02:11,233 --> 00:02:14,800 Before we start, let's define what an SDCL is. 35 00:02:15,466 --> 00:02:18,800 Small Dollar consumer loans, or SDCL, 36 00:02:18,800 --> 00:02:22,533 are loans used for personal stability or household purposes, 37 00:02:22,866 --> 00:02:25,800 including payday loan alternatives, 38 00:02:25,800 --> 00:02:28,400 refinancing, high cost debt, 39 00:02:28,400 --> 00:02:31,666 emergency loans, credit builder loans, 40 00:02:32,300 --> 00:02:37,500 small home or auto repair loans, and assistive technology loans. 41 00:02:38,433 --> 00:02:42,000 SDCL are usually $2,500 or less. 42 00:02:42,933 --> 00:02:44,900 This course will cover the importance 43 00:02:44,900 --> 00:02:47,900 and structure of a capital authorization plan. 44 00:02:48,000 --> 00:02:48,966 Different types 45 00:02:48,966 --> 00:02:52,733 of funding that loan funds may include in their capitalization plans. 46 00:02:53,233 --> 00:02:56,233 An overview of models for a loan loss reserve 47 00:02:56,433 --> 00:02:59,433 and data that is relevant to your capitalization plan. 48 00:02:59,966 --> 00:03:02,700 This course does not cover a precise number on 49 00:03:02,700 --> 00:03:06,333 the total capital needed for a SDCL program. 50 00:03:07,100 --> 00:03:10,566 A decision on whether or not to pursue particular types of funding, 51 00:03:11,133 --> 00:03:14,866 or guidance on applying for specific funding opportunities. 52 00:03:16,000 --> 00:03:18,400 This course also offers activities 53 00:03:18,400 --> 00:03:21,400 using materials found and course resources. 54 00:03:21,466 --> 00:03:24,466 This includes an SDCL manual workbook. 55 00:03:24,900 --> 00:03:27,900 You may also wish to follow along with these resources 56 00:03:27,900 --> 00:03:30,900 and work on them as you watch the video lessons. 57 00:03:31,666 --> 00:03:34,500 This course contains six modules. 58 00:03:34,500 --> 00:03:35,700 Introduction. 59 00:03:35,700 --> 00:03:37,966 Creating a capitalization plan. 60 00:03:37,966 --> 00:03:40,966 Common SDCL funding sources. 61 00:03:41,166 --> 00:03:43,033 Loan loss reserves. 62 00:03:43,033 --> 00:03:45,900 Leveraging your capitalization plan. 63 00:03:45,900 --> 00:03:49,566 Course recap modules, including a mixture of video 64 00:03:49,566 --> 00:03:52,566 lessons, flashcard review, and quizzes. 65 00:03:53,133 --> 00:03:56,166 You can access course resources in each module, 66 00:03:56,166 --> 00:03:59,166 including downloadable documents or web links. 67 00:03:59,300 --> 00:04:03,133 Make sure to click the complete button at the end of each video lesson. 68 00:04:03,933 --> 00:04:07,000 Once you completed the course and pass the final quiz, 69 00:04:07,266 --> 00:04:10,266 you'll be awarded a Certificate of Completion. 70 00:04:10,500 --> 00:04:12,566 With that out of the way, let's move on to the module. 71 00:04:12,566 --> 00:04:14,433 Creating a capitalization plan.