United States
Environmental Protection
Agency
Washington, DC 20460
Solid Waste and
Emergency Response
(5101)
EPA 500-R-00-006
May 2000
www.epa.gov/brownfields/
Brownfields Economic
Redevelopment Initiative
Brownfields Cleanup Revolving Loan Fund
Marketing Guide and Tool Kit
-------
United States
Environmental Protection
Agency
Washington, DC 20460
Solid Waste and
Emergency Response
(5101)
EPA 500-R-00-006
May 2000
www.epa.gov/brownfields/
Brownfields Economic
Redevelopment Initiative
Brownfields Cleanup Revolving Loan Fund
Marketing Guide and Tool Kit
-------
Preface
The United States Environmental Protection Agency's (EPA) Brownfields
Economic Redevelopment Initiative is designed to empower states, communities,
and other stakeholders in economic redevelopment to work together in a timely
manner to prevent, assess, safely clean up, and sustainably reuse brownfields.
As part of this Initiative, EPA has awarded cooperative agreements to
capitalize Brownfields Cleanup Revolving Loan Fund (BCRLF) Pilots.
The purpose of the BCRLF Pilots is to enable states, political subdivisions,
and Indian Tribes to offer loans to facilitate the cleanup and redevelopment
of brownfield properties. In particular, these Pilots are set up to test revolving
loan fund models that foster coordinated public and private cleanup efforts. EPA
provides funds to capitalize the BCRLF Pilots. States, political subdivisions, and
Indian Tribes, as cooperative agreement recipients, may provide loans, but not
grants, to public and private parties for the cleanup of Brownfield properties.
Each cooperative agreement recipient is responsible for managing its BCRLF funds,
ensuring proper environmental cleanups, and complying with all applicable Federal
and state laws and regulations.
EPA recognizes that developing plans and taking steps to attract potential borrowers
are vital early steps in BCRLF implementation. This BCRLF Marketing Guide and
Tool Kit is offered by EPA to help BCRLF cooperative agreement recipients take these
early steps to develop a successful loan fund program. This document, however, is not
designed to address all aspects of the BCRLF program. Comprehensive information
on EPA's BCRLF program requirements may be found in the Brownfields Cleanup
Revolving Loan Fund Administrative Manual (EPA 500-B-98-001, May 1998), the
Brownfields Cleanup Revolving Loan Fund Administrative Manual: Model Terms and
Conditions (EPA 500-B-98-002, October 1998), and the Proposal Guidelines for
Brownfields Cleanup Revolving Loan Fund (EPA 500-F-99-290, November 1999).
BCRLF Marketing Guide and Tool Kit
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BCRLF Marketing Guide and Tool Kit
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Contents
Overview 1
Marketing Guide Purpose 1
Introduction to BCRLF Marketing 2
Step 1. Market Research:
Understanding Your Marketplace 5
Defining the Market for Your BCRLF 6
Positioning a BCRLF Loan within a Redevelopment Financing Package 11
Summary and Action Item: Determining Your BCRLF's Market Niche 15
Step 2. Product and Program Development:
Creating a BCRLF that Meets Borrowers' Needs 17
Developing Loan Products: Addressing Borrower Needs 18
Structuring Your Loan Program: Make it Simple and Appealing 20
Integrating Loan Program with Other Services 21
Building Staff Skills andAwareness 23
Summary and Action Item: Creating a Marketable Product 24
Step 3. Selling The BCRLF:
Communicating Your Offering 25
Identifying Target Audience 26
Developing Outreach Approaches 28
Marketing to Interested Borrowers 41
Maximizing the Effectiveness of Communications 43
Summary and Action Item: Developing BCRLF Outreach and Direct Sales Strategies 45
Step 4. Loan Closing:
Signing and Servicing Your Loans 47
Key Ingredients of a Successful Loan 48
Understanding How Loans Can Fall Apart 49
Summary and Action Item: Developing a Loan Closing Game Plan 49
Retracing the Steps:
Assembling Your BCRLF Marketing Plan 51
Appendix:
Marketing Partners and Resources 53
BCRLF Marketing Guide and Tool Kit
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iv BCRLFMarketing Guide and Tool Kit
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Overview
Marketing Guide Purpose
As a Brownfields Cleanup Revolving Loan Fund (BCRLF) Pilot (i.e., cooperative
agreement recipient), you must attract eligible and appropriate borrowers to your
revolving loan fund program. This BCRLF Marketing Guide and Tool Kit provides
a road map to follow as you establish and implement your BCRLF marketing plan.
By developing a marketing plan, you can help ensure that your community takes
best advantage of your BCRLF's resources.
The guide describes what a marketing plan is, why it is important to have one, and
how to design a plan that suits your particular circumstances. In addition to providing
a framework for developing your marketing plan, this guide offers suggestions about
alternative marketing approaches. It includes real-life examples of marketing tools
and techniques that may be useful in your own marketing plan and activities.
Since every BCRLF serves a unique community, this guide is intended to help you
design a marketing plan that effectively conveys your program's key selling points
and reaches appropriate target audiences in your community. Of course, the most
important feature of any marketing plan and, in particular, one for a new program is
flexibility. Your marketing plan, therefore, should be comprehensive but adaptable to
changes in your BCRLF's market.
*CT)~This guide is
' iST offered by EPA
to help your BCRLF
Develop a marketing
plan
Convey your BCRLF's
key selling points
Reach your BCRLF's
target audience
Key BCRLF Selling Points
Reduced interest rates
Flexible repayment terms and loan amortization
Flexibility in acceptable forms of collateral
Simple application
Quick loan application review
Low transaction costs
Low or no processing fees
Ability to leverage Federal financial involvement to attract other sources of funding
BCRLF Marketing Guide and Tool Kit
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Introduction to BCRLF Marketing
Four Steps to Successful Marketing
This guide is organized into four chapters, each covering a distinct step in the
marketing process. The marketing steps are: (1) identification of potential
borrowers; (2) development of a loan program; (3) outreach and communication
to potential borrowers regarding BCRLF financing; and (4) execution of loans
and on-going support (marketing does not end with the sale).
Market Research
Defining Your Market
Positioning a
BCRLF Loan in a
Redevelopment
Financing Package
Product & Program
Development
Developing Loan
Products
Structuring Your
Program
Integrating Services
Building Staff Skills &
Awareness
Selling the BCRLF
Identifying Target
Audience
Developing Outreach
Approaches
Marketing to
Interested Borrowers
Maximizing the
Effectiveness of
Communications
Loan Closing and
Support
Key Ingredients of a
Successful Loan
Understanding How
Loans Can Fall Apart
The guide also includes a concluding chapter and an appendix. The final chapter
discusses how working through the four substantive chapters of this guide can assist
in preparing and implementing a marketing plan for your BCRLF. The appendix lists
organizations and agencies with which your BCRLF might establish partnerships as
you pursue potential borrowers and develop your BCRLF program.
Key Elements of Successful BCRLF Marketing
Support and active invovlement from elected officials (Mayor, Governor, legislature, etc.]
Hands-on approach with potential borrowers
Partnerships with other brownfields participants and resources
Assistance from your EPA Regional brownfields office
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Developing A Marketing Plan: Managing for Marketing Success
A marketing plan can help you organize and manage your BCRLF program. It
spells out the who, what, where, when, and how of identifying borrowers and sites
that could benefit from BCRLF financing. The four marketing steps introduced
above and described later in this guide make up the four corners of your marketing
plan. As you read through this guide, you can start to answer the implicit and explicit
questions posed:
Who needs BCRLF loans in my community -
e.g., local community groups, regional
organizations, national developers?
Where are the properties and projects they are
trying to redevelop - e.g., in my city, county,
region, or state?
What kind of loan will best meet their needs -
e.g., what size, how long, at what rate?
How do we inform potential customers about the
BCRLF and how it can help them - e.g., with
brochures, at conferences, on the web, face to face?
When the deal is closed, what follow-up
assistance and services are needed to ensure
BCRLF loan requirements are met?
The answers to these questions will form the outline
of your marketing plan. The plan does not have to be
long. You can use bullets, checklists, flowcharts, and
other shortcuts to keep it concise and focused. A good
marketing plan articulates broad goals, short- and long-term
objectives, and specific action items with responsibilities clearly identified. A good
plan also describes the roles of partnering entities, with details on how the BCRLF
Pilot and other involved parties will work together.
A sample BCRLF Marketing Plan Table of Contents is provided on the next page.
As you work through this guide, you can begin to develop your own marketing plan.
This sample Table of Contents is meant to provide you with guidance for organizing
the content of your marketing plan. Your BCRLF's marketing plan will be unique and
you should adapt this sample outline to fit your BCRLF's specific marketing strategy.
#2
Program Development
The What
#4
Executing Loans
Follow-Up Service
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Sample BCRLF Marketing Plan
Table of Contents
I. Market Research R1
A. BCRLF Market Profile R2
Potential Borrowers P.2
Potential Sites P3
Needed Loan Structures P.3
B. BCRLF Market Niche P4
Other Sources of Financing P.4
BCRLF Role in Cleanup and Redevelopment Financing P.4
II. Product and Program Development P.5
A. Loan Products to Be Offered P.5
B. Planned BCRLF Program Structure P.5
C. Technical Support Services to Be Offered P.6
D. Required Staff Training P.6
III. Outreach and Sales P7
A. Target Audience P7
B. Outreach Strategy and Tools P.8
C. Direct Marketing Strategy and Tools P.8
D. Outreach Implementation Timeline and Milestones P.8
IV. Loan Closing and Servicing P.9
A. Pro Forma Loan Documents P.9
B. Schedule Templates P.10
C. Loan Servicing Agreements P.11
D. Recordkeeping Requirements P.12
You should think of your marketing plan as a living document. Over the life of your
BCRLF, you will revise your plan to make sure your marketing strategy is aligned
with your market - i.e., level of demand for loans, level of knowledge about your
program among potential borrowers and other interested parties, availability of other
funding, target sites, economic dynamics, and political priorities. Your BCRLF's
success depends, in part, on your ability to recognize changes in the market and
adjust your marketing plan accordingly. Periodic review of the four marketing steps
throughout the life of your BCRLF will ensure that your marketing plan is geared to
the continued success of your BCRLF.
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Step 1. Market Research:
Understanding Your Marketplace
The first step in marketing your BCRLF is to formulate a thorough
understanding of the potential demand for your loan product or products and
the potential ways a BCRLF loan can fit within an overall redevelopment
financing package.
Each BCRLF market is unique in its size and scope. Marketing objectives, therefore,
must be specific to each BCRLF Pilot. Answering questions about your BCRLF's
potential borrowers, eligible sites, and other sources of funding available to your
borrowers will enable you to better understand the need for BCRLF financing. Some
basic questions to ask about your market include:
Who are the most likely borrowers?
What sites are these potential borrowers working to clean up and redevelop?
Which of these sites are eligible under the BCRLF Pilot criteria?
What other eligible sites exist in the eligible area?
What are desirable financing terms to eligible borrowers?
What are available complementary funding sources for eligible proj ects?
What is the BCRLF's niche relative to other financing sources?
Other factors that also may influence the demand for your BCRLF's loan products
and services include geographic location, affiliation (i.e., a small town, a large city, a
coalition of several municipalities, etc.), and the existence of other brownfield
initiatives in the region.
There are several specific financing roles that your BCRLF can play within your
market. Examples of these roles include the following:
Provider of short-term or bridge financing- i.e., source of financing in the
early stages of the cleanup and redevelopment process, repaid when long-term
financing becomes available.
Provider of long-term patient capital - i.e., source of financing over the entire
project period, repaid some time after project completion and generally over a
longer period.
Source of leveraging - i.e., means to help project sponsor attract other funding
or financing. Other sources of financial support may be more willing to provide
assistance if the project has secured BCRLF support.
These financing roles are demonstrated at the conclusion of this chapter in brief
descriptions of brownfield redevelopment projects.
BCRLF Marketing Guide and Tool Kit
Market Research
Defining Your Market
Positioning a
BCRLF Loan in a
Redevelopment
Financing Package
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Defining the Market for Your BCRLF
Market Research
Defining Your Market
Positioning a
BCRLF Loan in a
Redevelopment
Financing Package
Define your
' market based on:
Types of potential
borrowers and their
financial needs
Sites you are seeking
to influence
In its broadest form, the market for BCRLF loans includes all individuals, businesses,
or organizations that engage in cleanup and redevelopment activities. To focus your
marketing efforts, however, you will benefit from carefully defining your market.
Thus, it is beneficial to market loans to potential borrowers that either already have
an interest in a specific eligible site or are very likely to be interested in the eligible
sites in your BCRLF's region.
Based on their development interests, potential borrowers will be attracted to
different property types (in terms of size, access to infrastructure, geographic
location, etc.). If your BCRLF operates at the state level, is a coalition of
jurisdictions, or is a large municipality, your market area may have a diverse range of
eligible sites. Alternatively, if your BCRLF covers a smaller, more targeted geographic
area, your market area may have only a few small sites or one significant site eligible
for BCRLF assistance. Working within the scope of your BCRLF, you can refine the
target market for your loans.
Identifying Potential Borrowers
Most potential BCRLF borrowers fall into one of the following categories:
Local or national businesses expanding or relocating to your area
Local private developers
National developers
Non-profit community development organizations
Public and quasi-public entities
Identifying the categories of potential borrowers that exist in your particular area will
involve some preliminary research, as described below.
Expanding Businesses and Local Developers
By building relationships with local businesses and developers in your area, you will
gain a sense of potential BCRLF borrowers. Even with a good list of candidate
businesses and developers, however, you may only obtain limited information on
development plans. In many instances, expanding businesses and developers do not
like to share information regarding their interest in a particular site.
If you are unable to identify expanding businesses or local developers in your area,
you may wish to meet with local commercial real estate agencies with knowledge of
and relationships with local businesses and developers. You also may benefit from
establishing contact with local trade organizations or the local chamber of commerce
to develop leads.
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National Developers
Identifying national developers potentially interested in properties in your BCRLF
region will likely involve more effort than that required to research local developers
and businesses, but the potential payoff could be high. While national developers may
not have local offices in your area, they still may be interested in your region's
brownfields. Many national developers use local real estate agents to identify sites. A
strategic approach, therefore, is to inform local real estate agents about your BCRLF,
rather than attempting to contact national developers directly. Specialty brownfield
development firms, however, may warrant direct contact. Sources of contacts for
national developers include the following (also see Appendix for listings):
Commercial realtor associations
Bankers' associations
Brownfield and land use organizations
Developer associations
Brownfield specialty firms - those that identify brownfield sites and form teams with
environmental insurance carriers and law firms, remediation firms, local banks, and
real estate brokers to acquire, remediate, and redevelop brownfield sites
Not-for-Profit Organizations
Not-for-profit organizations with an interest in economic development and/or
environmental improvement have fostered brownfields reuse around the country,
and may be interested in doing so in your region. For example, the Chicago
Association of Neighborhood Development Organizations would be a useful network
for Chicago's BCRLF to identify potential borrowers.
Non-profits may support open space, parks, institutional uses (hospitals, universities,
etc.), or other related amenities. Non-profit organizations also may be interested in
assisting developers with sustainable or livable community land use plans through the
cleanup phase. Such non-profits can be identified through a review of brownfield and
smart growth journals and initiatives.
Public and Quasi-Public Entities
Your own BCRLF's affiliated governmental unit or other public or quasi-public
entities within your BCRLF region may themselves be potential borrowers.
Identifying interest from these entities is straightforward and may simply involve
discussions with key elected officials and agency managers. It should be noted that a
BCRLF Pilot may make "loans to itself in limited circumstances. The
appropriateness and substantive terms of such a transaction may require consultation
with EPA.
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Identifying Potential Sites
Prior to choosing a site for redevelopment, developers consider site factors such as
location, size, level of contamination, complexity, proximity to infrastructure, and
surrounding development. As a result, successfully generating a BCRLF loan depends
on: (1) whether a successful redevelopment plan can be developed for the site; and (2)
whether your BCRLF can play an effective role in the overall financing plan.
To demonstrate the effect that site characteristics can have on your BCRLF's
market, two simplistic scenarios are presented below. The first discusses the market
for a small site and the second the market for a larger site.
Scenario 1: Role of BCRLF Financing for Small Site Cleanup
When a small brownfield site is being considered for cleanup and redevelopment,
your BCRLF should first identify the key actors who are considering implementing
the project. For some sites, a developer may already own the site and be in search
of financing. For other sites, potential borrowers might be expanding businesses or
local developers. In either case, casting a wide net in search of a large national
developer might be inefficient and counterproductive.
Attracting the interest of local businesses involves more than simply identifying
those interested in expanding. Most small businesses, and perhaps some local
developers, are likely to be unaware of the types of financing packages available for
redeveloping brownfields. Therefore, approaching such potential BCRLF customers
involves explaining the full range of financing possibilities, including your BCRLF.
Smaller businesses and local developers, however, have greater difficulty accessing
capital. As a result, these potential borrowers are likely to find BCRLF loan benefits
more enticing than larger developers or businesses.
Potential Site Inventories
Sites assessed or targeted for assessment
Federal or State designated EZ/EC or priority investment areas
Sites using Federal funding (e.g., EPA, EDA Title IX, HUD CDBG or Section 108) or State assistance
Federal, State, or local designated brownfield tax incentive or abatement areas
Local development/planning office site inventories of economic development properties
(e.g., industrial/business parks)
Local master plans or land use plans
Local tax delinquency announcements
Tax increment financing districts
Environmental health surveys
Relevant land surveys, geographic information systems, or databases
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A Case Example: Scott Peterson Meats - Chicago, IL
Scott Peterson Meats wished to expand a Chicago plant by acquiring the adjacent property, demolishing the existing building, and
constructing employee parking. The company, however, required City assistance for this transaction. The City paid for environmental
investigation, cleanup, and demolition on the site, which was in Chicago's Brownfield Program. The site was then transferred to Scott
Peterson Meats for a nominal fee. In return for the City's help, Scott Peterson Meats expanded its operations, investing over $5 million
in a new smokehouse and hiring 100 new employees from the surrounding area.
Potential BCRLF Role. Some cities may not have the resources to finance a site cleanup like Chicago did in this example. For these
cities, BCRLF financing could offer an alternative for site cleanup financing.
Source: Lessons from the Field: Unlocking Economic Potential with an Environmental Key. Northeast-Midwest Institute.
Scenario 2: Role of BCRLF Financing for Large Site Cleanup
A larger site is more likely to be attractive to a national developer. National developers,
generally, have more expertise and knowledge of financing and development options
than local businesses or developers. Thus, large developers do not necessarily need
a high level of interaction with BCRLF personnel to understand brownfields
redevelopment issues. At the same time, such developers may be less likely to
understand how to navigate State and local regulatory permitting requirements.
Although national developers may be more knowledgeable about financing
arrangements than small businesses, redevelopment of a large site can be
complicated. BCRLF staff should be prepared to offer relevant technical
assistance or access to government entities that can provide the relevant help.
A Case Example: Harbor Redevelopment Project - Stamford, CT
Clearview Investment, Inc. is restoring a 15-acre site on Stamford's harbor. The project area includes the 3-acre Northeast
Utilities Site and the 12-acre Hoffman Fuel Site. Clearview is developing the site into a residential waterfront community,
Southfield Harbor. The development will include approximately 320 residential units and a marina facility with approximately 68
boat slips.
BCRLF Role. In 1999, EPA selected Stamford as a BCRLF Pilot. Subsequently, the Stamford BCRLF made its first loan to
Clearview Investment, Inc. in the amount of $250,000 to conduct brownfields cleanup on 3-acres of the site. The BCRLF loan is
expected to leverage up to a $50 million investment.
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Developing Potential Loan Structures
As part of the market research phase, you also should work to understand the
structure of financing borrowers in your market need. This means assessing the
mix of loan terms, interest rates, and repayment structures that will be of most
assistance to identified customers. The goal of meeting individual borrowers'
financing needs must be balanced against the goal of optimizing your BCRLF's
lending potential. To do this, you generally will want to create a structure that
enables your BCRLF to maintain a body of funds that "revolves" using repayments
to make new loans on an ongoing basis. Providing expansive interest subsidies and
protracted repayment terms, or taking on higher risk borrowers, may compromise
the revolving nature of the funds. Not doing so, of course, may not serve your
borrowers' needs - thus the balancing act. This balance in loan structure
characteristics is discussed below.
Loan Term. Long-term financing may be necessary for some borrowers whose
repayment source becomes available only when the project is completed. Other
borrowers may be seeking short-term financing until they can obtain another
form of long-term financing, or perhaps even a grant.
Interest Rate and Loan Fees. Borrowers' sensitivity to interest rates and loan
fees depends on their ability to access other forms of financing and their need
for other flexibilities (e.g., acceptable forms of collateral, repayment terms, etc.)
which your BCRLF can offer.
Repayment Terms. Frequently, the repayment source for cleanup financing may
not be available until construction is complete (e.g., via property lease payments).
Thus, it is often beneficial to borrowers to have a delayed repayment start date.
In some cases, however, other sources of repayment may be available and
repayment can begin sooner.
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Positioning a BCRLF Loan within a
Redevelopment Financing Package
A BCRLF loan can have a significant impact in a cleanup and redevelopment
financing package. Factors that can influence the extent of the impact include loan
size relative to total cleanup or redevelopment costs, loan timing, and characteristics
of the project's other sources of funding. In some instances, even a small, well-
positioned BCRLF loan can serve as a financing catalyst. In other projects, a larger
BCRLF loan can fully finance cleanup, facilitating the redevelopment project and
providing very interest savings for the borrower.
Redevelopment projects may require additional cleanup financing beyond what your
BCRLF can provide. Redevelopment projects also will require financing for non-
cleanup project phases, such as construction. Partnerships between your BCRLF
and other funding and financing programs may be necessary to help a project secure
additional cleanup financing as well as financing for redevelopment phases.
While aBCRLF loan may not always be able to finance 100 percent of a project's
cleanup costs, even a small BCRLF loan can leverage other financing and therefore
help to accelerate overall project completion. In addition, if your BCRLF offers
subsidized interest rates, any amount of BCRLF financing will lower overall project
costs. The greater the amount of cleanup costs financed through a BCRLF loan at
subsidized interest rates, the lower the project's overall interest cost.
This section discusses other sources of funding and financing for redevelopment
projects that your potential customers may find helpful in rounding out their
redevelopment financing package. At the end of this chapter, a few sample
redevelopment projects and their financial packages are offerred as illustrations.
Other Sources of Redevelopment Financing
BCRLF loans can be used for the cleanup portion of a redevelopment project.
BCRLF loans cannot fund either site assessment or development costs. It
is important, therefore, to work with borrowers to develop comprehensive cleanup
and redevelopment financing plans. Cooperative relationships between your BCRLF
and other financing sources will facilitate financing package development.
In addition to BCRLF loans, financing for brownfields cleanup can be provided by
commercial banks, state and local economic development organizations, venture capital
providers, corporations and individuals, Clean Water Act State Revolving Funds, and
other State and local grant and loan programs. In most cases, these other sources of
financing also may be able to fund the non-cleanup phases of a redevelopment project.
Examples of other funding sources are introduced below. An overview of commercial
bank requirements and a comparison of these requirements to those of your BCRLF
program also are provided.
Market Research
Defining Your Market
Positioning a
BCRLF Loan in a
Redevelopment
Financing Package
Other Sources of Financing
Commercial banks
State and local economic
development organizations
Venture capital
Corporations and individuals
Clean Water Act State
Revolving Funds
Other state and local grant and
loan programs
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-(*^ , By forming
1 rf" partnerships
with other financing
programs, you can best
assist BCRLF borrowers
in assembling their
redevelopment
financing packages
and serve as the
financing catalyst.
Public Financing Programs for
Brownfields Cleanup and Redevelopment
The BCRLF Pilot program has been created in response to an identified gap
in financing for brownfields cleanup. There are, however, some other sources
of public funding and financing available for brownfields cleanup and redevelopment
at the Federal, State, and local levels.
Federal Sources of Brownfields Financing
US Department of Housing and Urban Development (HUD) grants from Brownfields Economic
Development Initiative (BEDI) and Economic Development Initiative (EDI) programs, in conjunction
with Section 108 Loan Guarantees (for more information, see www.hud.gov/bfields)
HUD Community Development Block Grant (CDBG) funds (for more information, see
www.hud.gov/cpd/cdbg/deskguid.html)
US Department of Transportation (US DOT) funds, as long as cleanup is part of an eligible
transportation project (for more information, see www.fhwa.dot.gov/environment/)
US Department of Commerce, Economic Development Administration (EDA) programs to address
economically distressed communities (for more information, see www.doc.gov/eda/html/prgtitle.htm)
State and Local Sources of Brownfields Financing
State and local brownfields cleanup, economic development, or revitalization programs including
grants, loans, or loan guarantees
State and local transportation funds
Clean Water Act State Revolving Fund (SRF) loans, which can finance brownfield cleanup projects
where the objective of the cleanup is to protect or improve surface or groundwater quality
General obligation debt repaid by State or local general revenues
Revenue debt repaid by a revenue source dedicated to the project or a program of projects
12
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Commercial Financing Sources for
Brownfields Cleanup and Redevelopment
Commercial loans can be used in conjunction with BCRLF loans. Generally,
commercial lenders can provide larger amounts of capital than your BCRLF; and
they may provide loans for any phase of a redevelopment project, not just cleanup.
Issues to Consider When
Comparing and Combining Financing Sources
A brownfield project may require a combination of financing from both public and
commercial sources to be financially viable. Issues to consider in helping your
potential borrowers mix and match financing sources include the following:
Use ofloanfunds. Commercial lenders typically provide a loan that covers
cleanup costs only in conjunction with construction of the redevelopment project.
Moreover, commercial lenders do not generally market brownfield loans
explicitly. Instead, they market their ability to provide construction loans to sites
that may have environmental problems and may involve cleanup. Typically,
commercial lenders will only provide financing to a redevelopment project after
site assessments are complete and cleanup costs are quantified.
Financial requirements. Commercial lenders base lending decisions on the
relative profitability of loan transactions. Commercial lenders also base loan
terms, such as interest rates and repayment schedules, on the borrower's
financial strength and creditworthiness and market conditions. While BCRLFs
must be managed in a financially prudent manner, profitability may not be a goal
per se. Thus, your BCRLF is able to be more flexible than commercial lenders
by simply requiring that transactions meet financial benchmarks that ensure
financial prudence. Your BCRLF may offer subsidized interest rates and flexible
repayment terms that will not compromise the financial integrity of the program.
Environmental requirements. All lenders must ensure that the cleanup meets
certain environmental requirements. Therefore, all borrowers, of both
commercial and other public lenders and BCRLF Pilots, must adhere to Federal,
State, and local environmental ordinances. In addition, all environmental response
actions conducted under the BCRLF program must be conducted in accordance
with the Comprehensive Environmental Response, Compensation, and Liability
Act (CERCLA) and consistent with the National Oil and Hazardous Substances
Pollution Contingency Plan (NCP) (see Brownfields Cleanup Revolving Loan
Fund Administrative Manual -EPA 500-B-98-001, May 1998- for additional
detail on environmental response requirements).
^Commercial
lenders do
not typically provide
loans solely for the
cleanup phase of a
redevelopment project.
)' Your BCRLF is
generally able to
offer more flexible loan
terms than commercial
lenders, including longer
repayment periods,
lower interest rates,
and a wider range of
acceptable collateral.
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13
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Stamford BCRLF Loan
Loan size: $250,000
Loan term: 15 months
Interest rate:6%
Other financing: private funds
Resulting redevelopment
project: Rental residential
community of 327 apartments
with waterfront public
amenity access
Total cost of development:
Over $50 million
(100% private funds)
Las Vegas BCRLF Loan
Loan size: $50,000
Loan term:24 months
Interest rate: 2%
Other financing: municipal
bonds
Resulting redevelopment
project:Community and small
business incubation center
Demonstration of Potential BCRLF Loan Positioning
Two examples of brownfield cleanup and redevelopment financing packages that
include BCRLF loans follow. The first example includes a BCRLF loan made by
Stamford, Connecticut. The second example describes a BCRLF loan made by Las
Vegas, Nevada. Both examples show how a BCRLF loan can serve to facilitate a
broader redevelopment financing package.
Stamford, Connecticut BCRLF Loans
EPA selected the City of Stamford as a Brownfields Assessment Pilot in 1998 and as
a BCRLF Pilot in 1999. EPA provided the City with $500,000 to capitalize its BCRLF.
In October 1999, Stamford's BCRLF made a loan to help clean up the Stamford
Harbor waterfront property. The $250,000 loan was awarded to Southfield Associates,
through its managing member Clearview Investment Management. Funds will be used
to clean a 3-acre parcel that is part of a 15-acre site on the west branch of Stamford
Harbor in the Waterside Neighborhood. Over $ 1 million in private funds will be used
to clean the balance of the 15-acre site. The cleanup project will help to restore the
harbor area to a major economic and recreational resource. The loan is secured by
a first mortgage on the property. The term of the loan is 15 months at an interest
rate of 6 percent. A 1 percent loan origination fee also was imposed.
Las Vegas, Nevada BCRLF Loan
EPA selected the City of Las Vegas as a Brownfields Assessment Pilot in 1998
and as a BCRLF Pilot in 1999. EPA provided the City with $500,000 to capitalize its
BCRLF. The Las Vegas BCRLF awarded a cleanup loan to the State of Nevada's
Redevelopment Agency in November 1999. The $50,000 loan will finance cleanup
of the former National Guard Armory site. The 4-acre site will be redeveloped to
house a community and small business incubation center to encourage residents in
the area to take charge of their neighborhoods. The $50,000 loan leveraged $7 million
in municipal bond financing for project construction. The loan term is 2 years and the
interest rate is 2 percent.
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BCRLF Marketing Guide and Tool Kit
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Summary and Action Item:
Determining Your BCRLF's Market Niche
The market for cleanup loans will vary in each BCRLF Pilot's region. A clear
understanding of your market will pave the way for a successful BCRLF.
Identification of potential borrowers, the sites they might develop, and the types of
loans that would be useful to them will enable you to successfully promote your
BCRLF. As you develop this understanding of your market, build a market profile of
potential customers and their site and financing interests (as shown in the sample
illustration below). Loans can then be marketed to potential borrowers that may
already be interested in an eligible site, or are interested, more generally, in the
eligible sites in your BCRLF's jurisdiction.
Identifying other sources of financing available to potential borrowers also is
important in marketing your BCRLF loans. Knowledge of the availability and terms
of the other financing sources will help determine how you can best structure your
loan program to leverage these sources. Once gaps in financing are identified, you
can position your BCRLF loans to most effectively meet borrowers' needs.
Example Market Profile Worksheet
Market Profile
Organization
Name
Steinman
Bros. Air
Conditioners
Smart
Developers
Inc.
Green Growth
Lawton, Inc.
Customer
Type
Expanding
manufacturer
Local
developer
Non-profit
environmental
organization
Local business
Contact
Name
Bob Steinman
Sally Jeffers
Bill Curtis
Sam Lawton
Address
200 W. Oak
Street
300 N. Maple
Street
100 Fitch
Street
222 East
Avenue
Phone
333-222-4444
333-222-5656
333-222-1234
333-222-1222
Site Location
15th and S
Streets
1st and F
Streets
102 Fitch
Street
700 W.
Oakdale
Avenue
Site Size
(Acres)
3
10
2
5
Financing
Needs
Short-term
interim (or
bridge) loan
Low interest,
long-term loan
Interim loan
Short-term
interim (or
bridge) loan
Timing of
Project
Fall 2001
Fall
2000
Spring 2001
Summer
2001
You should define your market niche based on information currently available and
make changes as your BCRLF and its market grows. You also may wish to develop
a research plan to build a more thorough understanding of other financing sources
and resulting market gaps in your BCRLF area.
BCRLF Marketing Guide and Tool Kit
15
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IB BCRLF Marketing Guide and Tool Kit
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Step 2. Product and Program Development:
Creating a BCRLF that Meets Borrowers' Needs
The second step in the marketing chain is product and program development.
This includes both the development of loan features that meet borrowers'
financing needs and the development of a comprehensive set of operating
procedures that are responsive to the community's needs. Establishing loan
instruments and program guidelines that meet the specific needs of your
potential borrowers and your community is essential to a successful BCRLF.
Your BCRLF must offer loan instruments and services that are responsive to
borrowers' needs. Otherwise, even the most comprehensive marketing efforts will be
unsuccessful. Once you have conducted preliminary market research, as discussed in
Step 1 of this guide, you will be well-positioned to develop the details of your
BCRLF program.
This chapter describes the building blocks of a marketable loan program. The pillars
of a successful program are loan features and program services that appeal to your
BCRLF's potential borrowers. You should consider these general features in the
context of your own community's needs. Next, the chapter addresses the vital role of
technical support in ??? out any loan program. Finally, this chapter discusses the
importance of training BCRLF staff in marketing techniques and educating other
relevant personnel about the basics of the BCRLF program. This is a vital marketing
element to be factored into program design.
Targeted Support Services
Product & Program
Development
Developing Loan
Products
Structuring Your
Program
Integrating Services
Building Staff Skills &
Awareness
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Product & Program
Development
Developing Loan
Products
Structuring Your
Program
Integrating Services
Building Staff Skills &
Awareness
-Simplicity and
clarity are crucial
to successful loan
product development.
Developing Loan Products:
Addressing Borrower Needs
It is easy to market a loan product that directly addresses borrowers' needs and is
easy to use. Your BCRLF's loan products are thus a defining feature of your loan
program. The ability of your BCRLF to place loans with borrowers will be influenced
by the loan product characteristics that you offer. Loan product characteristics that
will define the market for your BCRLF include interest rates, repayment terms,
minimum and maximum loan sizes, and eligible uses of loan funds.
The loan products that your BCRLF offers should enable you to meet your
borrowers' needs while maintaining a healthy and financially prudent loan fund.
Carefully-constructed loan product features, as described below, can help your
marketing efforts.
Reduced Interest Rates
BCRLF loans may be made at below market rates, but not less than 0 percent. When
determining interest rates for your loans, remember that lower rates will maximize
borrowers' cost savings and overall project feasibility. Lower rates also will, however,
result in smaller repayments and therefore less capital available for future loans. If
demand for loans is relatively low, you may wish to lower interest rates to entice
additional borrowers. If demand for loans is high, however, a less subsidized interest
rate may be more feasible and permit you to maintain the level of your funds.
The method for determining interest rates should be stated clearly in your BCRLF's
marketing materials. Following are several examples of how interest rates can be stated:
As a fixed rate - e.g., 3 percent, 4 percent, etc.
As a function of the prime rate - e.g., prime minus 2 percent,
but not less than 0 percent
As a percent of market rate - e.g., 25 percent of prime rate or
of a given bond index
As a variable rate, based on loan term - e.g., 8 percent for 12-months,
6 percent for 24-months, 4 percent for 5 years, and so on
Cost Savings as a Result of a Reduced Interest Rate
Market Rate
(6%)
Reduced Rate
(3%)
Inputs
Loan amount
Loan term (years)
$225,000
5
$225,000
5
Outputs
Annual repayment
Principal repayment
Interest cost
Total repayment
Savings
$52,636
$225,000
$38,181
$263,181
$48,767
$225,000
$18,834
$243,834
$19,347
Regardless of the
method your BCRLF
uses to determine its
interest rate, it is crucial
to state your method
simply and clearly.
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BCRLF Marketing Guide and Tool Kit
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Flexible Repayment Terms
Offering flexible repayment terms will support your marketing efforts. For example,
repayment start dates may be extended until redevelopment is complete. EPA
expects sound judgement and prudent practices to be utilized in setting repayment
terms. The BCRLF program does not, however, have specific requirements for
repayment start date or length. Similarly, amortization schedules may be extended to
allow for low monthly payments.
Minimum and Maximum Loan Size
Offering loan amounts that meet potential borrowers' needs is critical to a successful
program. EPA does not impose limits on the loan sizes offered by Pilots. While
offering small loans may require additional administrative resources, it may help
stretch BCRLF resources to the greatest benefit. In some instances, offering large
loans - even 100 percent of your loan pool to one borrower - may be the most
effective use of your loan funds. This decision and how it is communicated in your
marketing materials can have a major impact on the success of your program.
Broadly Defined Eligible Uses
BCRLF funds have been designated for cleanup activities. These activities can be
summarized as actions associated with: removing, mitigating, or preventing the
release or threat of a release of a hazardous substance, pollutant, or contaminant;
site monitoring activities; and meeting public participation, work health and safety,
and interagency requirements.
In addition to cleanup activities, your BCRLF may allow borrowers to use a portion
of loan funds for administrative costs. Based on EPAs guidelines, your BCRLF may
allow borrowers to use up to 10 percent of borrowed funds for such costs.
You also may allow borrowers to use BCRLF funds to purchase insurance, including
environmental insurance. The cost of insurance is not counted against the
borrower's 10 percent limit on administrative funds.
Enabling borrowers to use loan funds for administrative costs and insurance will
increase the appeal of you loan product to some potential borrowers.
BCRLF Marketing Guide and Tool Kit 19
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Product & Program
Development
Developing Loan
Products
Structuring Your
Program
Integrating Services
Building Staff Skills &
Awareness
)^Structure and
administer your
BCRLF program to meet
customers' needs.
Structuring Your Loan Program:
Make it Simple and Appealing
Offering a comprehensive loan program with features that are appealing to
borrowers' financial needs will help your marketing efforts. Your BCRLF program
structure should make borrowing funds as simple as possible. Regardless of the
advantages of your BCRLF's loan products such as low interest rates and flexible
repayment terms, borrowers may be discouraged from borrowing from your BCRLF
if the process is overly burdensome or inaccessible.
Structuring and administering your loan program to meet customers' needs will
encourage potential borrower's to utilize the loan fund. The loan program features
described below can help your marketing efforts.
User Friendly Application
Creating an easy-to-complete application form will help keep borrowers interested.
While keeping it simple, the form should be as comprehensive as possible. This will
help minimize the need to go back to the borrower for additional information, a
process that can be frustrating to you and the borrower.
Quick Loan Application Review
Reviewing applications quickly and providing applicants with an approximate time
frame for review will help keep interested borrowers involved in the process.
Keeping lines of communication open with applicants during the review process also
is important. In addition, you should make sure that, once approved, loans can be
disbursed as quickly as possible. For a developer, timely receipt of funds can make
the difference between project success and failure.
Clearly Defined Record-Keeping and Reporting Requirements
Establishing a record-keeping and reporting framework for borrowers that is easy to
understand is vital to the success of your program. A record-keeping regimen that is
unclear or disorganized will make it more difficult to market loans. Borrowers should
document that they are meeting BCRLF program responsibilities in regular reports.
Borrowers also must provide financial records on a regular basis to ensure basic
accounting and control mechanisms are in place. Cooperative agreement recipients
must maintain documentation for a minimum of 10 years after completion of the
cleanup activity supported by each loan. Please refer to the Brownfields Cleanup
Revolving Loan Fund Administrative Manual (EPA 500-B-98-001, May 1998), for
complete record-keeping and reporting requirements.
Flexibility in Acceptable Forms of Collateral
You may accept a wide range of loan collateral within financially sound practices.
Examples of acceptable collateral include liens on the brownfield site, security
interests in equipment, accounts, and personal guarantees. This flexibility will help in
marketing your loan product.
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BCRLF Marketing Guide and Tool Kit
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Integrating Loan Program with Other Services
Your BCRLF's market reach can be expanded by offering or facilitating access to
related brownfield redevelopment services. These services can be offered directly
by your BCRLF or via cooperative relationships with related agencies, such as local
centers for economic development which may already provide such services.
Services may include the following:
Technical assistance
One-stop shopping
Environmental clearinghouse
Technical Assistance
Borrowers are likely to need assistance with the loan application, loan agreement
development, and other financing-related processes for the cleanup and redevelopment
project. BCRLF staff should make themselves available to potential borrowers for
one-on-one discussions and assistance in filling out applications and other paperwork.
If your BCRLF does not have the staff resources to provide such hands-on
assistance, you may choose to arrange for technical assistance to be provided
through supporting organizations.
Examples of needed assistance include help with completing the BCRLF application,
identifying and obtaining additional financing, and identifying and securing repayment
sources. For example, Pennsylvania's State Drinking Water Revolving Fund program
meets with applicants to help them through the application process. In addition,
several states, including New Hampshire, have made arrangements with state rural
assistance providers to have their travelling representatives assist potential borrowers.
Similarly, your BCRLF could establish partnerships to provide technical assistance to
potential borrowers with local economic development centers.
One-Stop Shopping
Your BCRLF can be integrated with other brownfields, economic development, and
planning initiatives. This integration can provide borrowers with access to business
assistance, as well as information on environmental regulations, legal obligations,
local planning initiatives, and other brownfield redevelopment incentive programs.
Given the wide variety of potential borrowers, it is impossible to predict and be
able to address all of their individual needs. It is beneficial, however, to have as
many technical assistance tools in your BCRLF's "tool box" as possible. The more
information and assistance that your BCRLF can access for your customers, the
better able your program will be to meet their needs.
Product & Program
Development
Developing Loan
Products
Structuring Your
Program
Integrating Services
Building Staff Skills &
Awareness
, Directly offer,
' or facilitate
via cooperative
relationships, services
that support borrowers'
needs throughout
the cleanup and
redevelopment
process.
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Environmental Clearinghouse
Many states or regions have clearinghouses that serve as information repositories
for environmental programs or activities. If your BCRLF region has one, you should
be sure to provide clearinghouse staff with your BCRLF's marketing materials and
program guidelines. If such an institution does not exist in your BCRLF's region, you
might consider working with other interested organizations to establish this useful tool.
22 BCRLF Marketing Guide and Tool Kit
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Building Staff Skills and Awareness
Your BCRLF's staff should be properly trained in both program management and
marketing techniques. Specifically, personnel should be trained in needed loan fund
management and environmental cleanup program elements and in communication
and marketing skills. In addition, relevant staff beyond those directly responsible for
the BCRLF program should be educated about BCRLF program basics.
The Direct Marketers - BCRLF Staff
BCRLF personnel who are marketing loans need exceptional communication and
presentation skills as well as an in-depth understanding of the program. In many
instances, personnel responsible for marketing will have many other responsibilities
and will not be trained marketing professionals. As a result, you should work with staff
to develop these skills. Staff could attend relevant workshops and seminars that are
frequently offered at local colleges and through various professional organizations.
For example, the following two national-level organizations currently provide training
and educational workshops for revolving loan fund managers:
The Council of Infrastructure Financing Authorities (CIFA) holds an annual
workshop that has some sessions relevant to BCRLF Pilots (the intended
audience is water and wastewater State Revolving Fund managers). For further
information, see www.cifanet.org.
The National Association of Development Organizations (NADO) Research
Foundation's Economic Development Finance Service offers training for RLF
professionals. For further information, see www.nado.org.
Other relevant training for BCRLF staff may include marketing or public finance
courses at local colleges.
Product & Program
Development
Developing Loan
Products
Structuring Your
Program
Integrating Services
Building Staff Skills &
Awareness
)»Provide staff
with training to
effectively manage and
market the BCRLF.
Program Ambassadors
Your BCRLF staff
Local business assistance centers
Federal, State, and local economic development organizations
State and local environmental agency personnel
Chambers of commerce
Commercial banks
BCRLF Marketing Guide and Tool Kit
23
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ty Work with your
affiliated agencies and
government officials to
make the best use of
your limited resources
and offer as many cost
saving measures and
technical assistance
services as feasible.
The Indirect Marketers - Affiliated Agency Staff & Others
It is important to go beyond the immediate program managers to create "program
ambassadors" for your BCRLF. In addition to your BCRLF staff, all relevant
agency staff should have a basic understanding of the program and its purpose.
Staff within the BCRLF's affiliated agency as well as staff throughout the State
or local government (as applicable) should be provided basic program information.
Even a minimal understanding of the program enables staff to refer others to the
BCRLF and be extensions of the BCRLF's direct personnel. Presentations at staff
meetings, articles in the organization's internal newsletter, and internal memoranda
and e-mails can be used to provide a broad range of staff with the necessary
level of information.
Other entities also can help your Pilot. Examples include local business assistance
centers, economic development organizations, environmental agency personnel,
chambers of commerce, and commercial banks. Providing these organizations with
information on how your program can work with them to promote environmental
cleanup and economic development will encourage them to refer potential
borrowers to your BCRLF.
Summary and Action Item:
Creating a Marketable Product
The building blocks of a successful revolving loan fund program include attractive loan
terms, streamlined loan application and implementation processes, support services,
knowledgeable staff, and communication strategies to reach potential borrowers. The
key to success is to maintain flexibility to meet specific borrowers' needs while
keeping the program simple and easy to access. It will be beneficial to work with your
affiliated agencies and government officials to make the best use of your limited
resources to offer cost saving measures and technical assistance services.
You should assess where you currently are in the process of developing your
program. Then, you can consider what the needed next steps are to fully define your
program and the resources needed to communicate this to your target audience.
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BCRLF Marketing Guide and Tool Kit
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Step 3. Selling The BCRLF:
Communicating Your Offering
The third step in your marketing plan involves communicating the BCRLF offering
to your target audience. Communicating the availability of BCRLF loans requires
both broad outreach and targeted marketing to individual potential borrowers.
In thinking about marketing, the outreach and direct selling steps are often what
first come to mind. For many, the term "marketing" conjures up visions of intensive
advertising campaigns or coupon wars. It is not, however, until after the market
research and product and program development steps are completed that outreach
and sales can be undertaken effectively. Further, the outreach and sales step includes
much more than advertising-type activities. At the right stage, a carefully crafted
combination of outreach approaches and direct sales techniques will help you place
loans with qualified borrowers.
Sample outreach and direct selling strategies are outlined in this chapter. To be
effective, communications must be clear, concise, accurate, and timely. Care must be
taken to choose the combination of strategies that will work best for your particular
BCRLF. This chapter also describes techniques for maximizing the effectiveness of
communications from your BCRLF.
Selling the BCRLF
Identifying Target
Audience
Developing Outreach
Approaches
Marketing to
Interested Borrowers
Maximizing the
Effectiveness of
Communications
BCRLF Marketing Guide and Tool Kit
25
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Identifying Target Audience
Selling the BCRLF
Identifying Target
Audience
Developing Outreach
Approaches
Marketing to
Interested Borrowers
Maximizing the
Effectiveness of
Communications
The target audience for BCRLF marketing and outreach approaches should include
not only potential borrowers but also others involved in the brownfields redevelopment
process. The individuals can help identify potential borrowers and act as program
ambassadors. Examples of these entities are listed below. It will be beneficial to
develop your own Pilot-specific target audience list based on research conducted
during Step 1 - Market Research.
Public Officials and Agencies
Local and/or State political officials (especially those involved in ongoing community
economic development efforts) are critical audiences to reach. These include:
Governor
Mayor
Town council members
Legislators
Local and/or State Agency Representatives
Representatives from agencies currently involved or appropriate to be involved in
brownfields cleanup and redevelopment efforts include those from the following
State and local agencies:
Commerce
Economic development
Community development
Planning
Housing
Public works
Natural resource/conservation
Environmental protection
Citizen and Community Groups
Program ambassadors can emege from voluntary and community-based
organizations, including:
Neighborhood and civic organizations
Community leaders
Community members involved in ongoing economic development efforts
Private land owners
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BCRLF Marketing Guide and Tool Kit
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Academic Institutions and Practitioners
Researchers and practitioners in the fields of economic development, environmental
site assessment, cleanup technologies, and community action can be important
conduits to reach potential borrowers. Examples include:
University researchers and technical experts
Associations and trade organizations
Economic development associations and corporations
Environmental organizations
Consultants (e.g., environmental, real estate, land use, legal, engineering)
Business Interests
Business representatives from within the community are target audiences -
both as potential borrowers and program ambassadors. These include:
Developers
Real estate firms
Local businesses
Small- and minority-owned business developers
Small and minority-owned business organizations
Financial institutions (banks, credit unions, venture capital providers, etc.)
Chambers of commerce
Environmental insurance brokers and providers
BCRLF Marketing Guide and Tool Kit 27
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Developing Outreach Approaches
Selling the BCRLF
Identifying Target
Audience
Developing Outreach
Approaches
Marketing to
Interested Borrowers
Maximizing the
Effectiveness of
Communications
"fD-'Your BCRLF's
17 staff should plan
to spend significant
time meeting in
person with potential
borrowers and other
interested parties.
All outreach approaches should provide potential borrowers and other interested
parties with basic information on your BCRLF program. Potential outreach
approaches can be thought of as either print-based or people-based. Print-based
outreach approaches can generally be defined as written materials that inform,
educate, and market your BCRLF. Print-based outreach does not, on its own,
include any person-to-person contact between your BCRLF's staff and potential
borrowers or other interested parties.
Due to the complexity of the BCRLF program, printed material alone will not fulfill the
outreach function single-handedly. Your BCRLF's staff should spend significant time
with potential borrowers and other interested parties. Your program will likely receive
a more favorable response to people-based outreach approaches than to printed
information. The interactive nature of people-based outreach enables potential borrowers
and other interested parties to ask questions and make significant progress along the
"learning curve" associated with brownfields and, specifically, the BCRLF program.
Depending upon your BCRLF's market, the combination of people-based and
print-based outreach approaches that you utilize will vary. If you have a small set of
identified potential borrowers, you may rely more heavily on people-based outreach.
You may conduct individual meetings or small workshops with potential borrowers. At
these workshops and meetings, you can provide fact sheets, application materials, and
program guidelines. With a small market, you will probably not do any significant mass
mailings, advertising, or press releases to broad audiences.
Alternatively, if you are not certain who your potential borrowers may be, or if you
have a large universe of potential customers, print-based approaches that reach a
broad audience, combined with speaking at conferences and meetings, may be a good
initial approach. This initial step will help to identify a more narrow set of potential
borrowers with whom you will want to meet one-on-one.
For each general outreach approach, this chapter includes a general description,
implementation instructions, a discussion of timing and frequency, advantages and
disadvantages, and, if applicable, examples of use in other revolving loan fund programs.
Outreach Approaches Discussed in this Chapter
Print-Based
Brochures
Fact sheets
Press releases/media coverage
Newsletters
Mass mailings
Preliminary interest forms
Advertisements
Pilot and related web pages
People-Based
Telephone calls
Seminars and other meetings with interested parties
Conferences
Joint marketing with commercial lenders
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BCRLF Marketing Guide and Tool Kit
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Brochures
A brochure is a brief handout or flyer that describes the primary characteristics of
the BCRLF and is distributed at seminars, conferences, and other meetings, or
via mass or targeted mailings.
Implementation Guidelines
Capture reader's attention; be clear and brief; cover main program aspects
Include program description, advantages/benefits, eligible borrowers, eligible Sample Brochure Contents
sites, contact information, and a preliminary interest form
Develop in an easily and inexpensively reproduced format (a high quality It's Easy To Use
tri-fold brochure can be produced in-house on standard word processing/ Project Criteria
graphics software) Typical Loan Terms
Place an electronic version on the BCRLF's or affiliated organization's Who Is The Focus Of
web site, if possible This Program?
Distribute broadly at seminars, conferences, and via mailings Where Must My Property
Be Located?
Timing and Frequency Why Does This Program Exist?
Develop immediately following BCRLF award How Do I Learn More?
Use throughout the life of the BCRLF
Advantages
Quick and simple outreach method
Provides the basics of how to apply for a loan
Inexpensive development and reproduction (especially if done in-house)
Disadvantages
Some development costs (time and production), which increase with use
of color and quality paper
Lacks level of detail ultimately needed by a potential borrower
Brochure Use in Other RLFs
Englewood, Colorado's brownfield assessment RLF distributes its brochure widely and
posts it on their web site: www.ci.englewood.co.us/brownfields
BCRLF Marketing Guide and Tool Kit 29
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Fact Sheets
Sample Fact Sheet Topics
Program purposeSi goals
Site and borrower eligibility
requirements
Loan terms (repayment periods,
interest rates, loan sizes, etc)
Case examples of successful
loans
Fact sheets are single-sheet informative flyers that provide information on a single
BCRLF topic or generally describe the overall program.
Implementation Guidelines
Discuss important or frequently misunderstood topics
Prior to developing, clearly establish BCRLF guidelines
(unclear requirements will make the reader shy away from the program)
Write easy to read, to the point, and understandable text
Develop in-house, if possible
Make one-page in length, double-sided if necessary
Distribute at meetings, seminars, conferences, and via mailings
Timing and Frequency
Develop immediately upon BCRLF guideline formulation and throughout
BCRLF life
Distribute as frequently as feasible
Advantages
Provides details on selected topics of importance
Inexpensive production and mailing
(especially if developed in-house and mailed as a tri-fold without an envelope)
Disadvantages
Limited level of detail
Without follow-up meetings, does not address audience's questions - works best
if used in conjunction with in-person outreach approaches
Fact Sheet Use in Other RLFs
The New Hampshire Clean Water State Revolving Fund has developed a series of fact sheets. One of their fact
sheets, entitled "How Difficult Can It Be," describes the steps taken in applying for a loan. Another, entitled
"What is SRF," provides basic program information, such as purpose and major requirements.
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BCRLF Marketing Guide and Tool Kit
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Media Coverage
This category of outreach strategies includes written statements to the media (i.e.,
press releases) or invitations to the media to BCRLF-sponsored seminars or forums.
Implementation Guidelines
Provide press releases to media (focus on local newspapers and business
journals; television and radio will be less productive). First, provide notification
of the new BCRLF and state the availability of cleanup loans. Future press
releases can then provide detailed program information, information on loans
made, or notification of successful cleanups
Invite journalists to seminars, forums, and other meetings you sponsor
Include BCRLF contact information in all media coverage
Timing and Frequency
Use throughout the life of the program, but particularly at program inception and
key milestones
Prepare press releases and encourage media coverage when activities warrant
Advantages
Low development costs
Potential to reach a broad audience if picked up by the press
Disadvantages
May not be considered of broad enough interest carry
Easy to overlook small clips of information in expansive newspaper sections
Print media alone not effective for a topic with such a steep learning curve
Anywhere, USA Establishes $500,000 Loan Program for Brownfields Cleanup
Anywhere, USA has $500,000 available in loan funds for brownfields cleanup. Entities that
encounter environmental contamination on a property should contact the program to inquire
about the potential for cleanup financing. For more information contact John Brown,
Anywhere, USA Brownfields Cleanup Revolving Loan Fund, 888-888-8888, www.BCRLF.gov.
BCRLF Marketing Guide and Tool Kit
31
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Newsletters
A newsletter is a document, of approximately four to eight pages, that provides
information on the activities of the BCRLF, basic BCRLF programmatic
information, and other relevant brownfield or development news. You can either
develop a stand-alone BCRLF newsletter or add a BCRLF section to an existing
broader brownfields or development newsletter.
Implementation Guidelines
Develop in a way that is easily reproduced
Post on your own or an affiliated organization's web site
Timing and Frequency
Use throughout the life of the BCRLF (more appropriate for an established RLF
with activities to report)
Publish annually or semi-annually, unless activities warrant otherwise (there may
not be sufficient information or funds to publish on a more frequent basis)
Distribute as frequently as feasible throughout the year
Advantages
Provides a method for communicating with interested parties
Provides examples of successful loans; shows BCRLF as a viable financing
source
Disadvantages
Moderate costs associated with development, publishing, and distribution
Newsletter Use in Other RLFs
The New Hampshire Clean Water State Revolving Fund publishes a quarterly newsletter. For
example, the Spring 1999 issue (about 6 pages in length) includes an update on the SRF's activities
and a few articles of interest to its borrowers and other interested parties on legislative actions,
new technologies, and progress of particular projects.
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Mass Mailings
Mass mailings are broad-based mailings to potential borrowers and other interested
parties that include information on your BCRLF. Items to be mailed include those
described earlier in this section, such as newsletters, fact sheets, and interest forms.
Implementation Guidelines
Include identified BCRLF target audience, in particular real estate professionals,
developers, and businesses in the eligible area
To keep expenses down, be brief (i.e., low weight) and provide appropriate level
of information to each target audience
Create as a letter, flyer, or brochure and include newsletter or preliminary
interest form
Provide enough information to capture the recipient's attention and encourage
follow-up
Obtain existing contact lists of potential borrowers or other interested parties
(local centers for economic development and other associations may keep
databases of businesses that can be queried for a specific business type)
Complement with follow-up telephone calls and individual meetings
Timing and Frequency
Use throughout the life of the program
Advantages
Gets the word out about the program to broad audiences
Cost relatively low (especially if done in-house or by volunteers)
Disadvantages
Can be easily overlooked by recipients in stacks of mail
Due to the brevity, requires additional follow-up to provide a full understanding
of the program
Mass Mailing Use in Other RLFs
The Rhode Island Clean Water
Finance Agency notifies all
potential borrowers (in their case,
municipalities) of newly available
loans via mailings to:
Mayors
Town managers
Public works directors
Finance directors
Rochester, New York's Fee-For-Service Brownfield Assessment Program
Rochester's Brownfield Assessment Program maintains a database of community businesses
as well as a targeted database of lawyers, accountants, environmental professionals,
architects, etc. Through mailings, they inform firms of their program and provide contact
information if they or their clients are interested. Rochester plans to use this marketing
technique for their BCRLF program as well.
BCRLF Marketing Guide and Tool Kit
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Preliminary Interest Forms
A preliminary interest form is a short form requesting very basic information from
a potential borrower and serves to solicit interest in the program. The form is not
in any way part of an official loan application.
Implementation Guidelines
Request barely more than contact information
Distribute within a BCRLF brochure and with other programmatic materials
through mass mailings, conferences, seminars, or other meetings
After receipt of a completed form, conduct follow-up phone calls, mailings, and
meetings
Timing and Frequency
Use throughout the life of the Pilot
Distribute as frequently as feasible
Advantages
Easy to develop and distribute
Opens lines of communication with potential borrowers without requiring them
to do a lot of work
Since not a formal application, no official approvals from potential borrowers'
governing agency needed
Disadvantages
Potential borrowers' apprehension about sharing information
Interested in learning more about the
Anywhere, USA
Brownfield Cleanup Revolving Loan Fund?
(^ BCRLF Preliminary Interest Form
Name!
Company/Organization:
Address!
Phone:
Fax:
e-mail:
Brief project description
(optional):
Mail or fax to:
John Brown Fax: 999-999-9999
Anywhere USA BCRLF Phone: 888-888-8888
1 00 West Street Web: www.bcrlf.gov
Brownfieldville, DC 99999
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An advertisement is an announcement or description of the availability of cleanup
loans published in newspapers, trade journals, and other relevant publications.
Implementation Guidelines
Develop eye-catching, small advertisement to be placed in newspaper business
sections or brownfields or development trade journals and publications
Include a brief program description and BCRLF contact information
If the cost of space is not prohibitive, include a preliminary interest form
If possible, the advertisement should complement a press release or other
BCRLF-related article in the same publication
Timing and Frequency
Use throughout the life of the BCRLF
Given their cost relative to effectiveness, only use in appropriate publications
when those publications have special issues generating significant attention
Advantages
If placed in appropriate publications, targets interested parties and encourages
them to contact the BCRLF for more information
Creates a general awareness of program availability
Disadvantages
Does not provide significant program details
Can be costly relative to other approaches
Can have a diffuse impact or miss the target audience if not properly targeted
BCRLF Marketing Guide and Tool Kit 35
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'r^a BCRLF Web Page
^\ A BCRLF web page is a web site dedicated to your BCRLF and its activities.
w "^f* It can function either independently or through an affiliated organization's site.
Implementation Guidelines
Develop a web page for your BCRLF that includes the following information:
- Program description, purpose, and benefits
- Eligibility requirements for sites and borrowers
- Preliminary interest form (that can be submitted electronically)
- Application procedures and an actual application
- Loan terms
- Program materials (i.e., brochure, newsletter, fact sheets, guidelines)
- Link to EPA's brownfields web site (www.epa.gov/brownfields) and other
relevant State or local government sites
- Other potential sources of funding available to your borrowers, including contact
information or links to relevant web pages and potential loan repayment sources
- Potential sites, including a searchable directory of brownfields available for
redevelopment, if possible
- BCRLF contact information, including e-mail, for additional information
Make accessible through a link on your BCRLF's affiliated agency's web site
Place links to your BCRLF's web site on other web sites that developers and
real estate professionals frequent (e.g., trade journal web sites)
Include your web site address in all programmatic materials and outreach
Timing and Frequency
Develop as soon as program guidelines are formulated
Maintain operational throughout life of the BCRLF
Update on a regular basis to maintain usefulness
Advantages
Provides easy access to program information
Inclusion of e-mail link/question form provides means to begin communications
Disadvantages
Costs associated with development and updates
Access to and comfort with the internet not yet universal
Other RLF's Web Pages
Arizona's Highway Expansion and Extension Loan Program (HELP, a RLE for transportation projects) has a web site that provides
annual and monthly reports, relevant legislation, and application packets. The web site is located at www.dot.state.az.us/
about/fms/help.htm
The city of Englewood Colorado's Brownfield Assessment RLE has a web site that provides program information such as a brochure,
a loan application, and quarterly reports. The web site is located at www.ci.englewood.co.us/brownfields.
36 BCRLF Marketing Guide and Tool Kit
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Telephone Calls
Telephone calls are a means of establishing personal contact with potential
borrowers and other interested parties to discuss the BCRLF.
Implementation Guidelines
Call entities and individuals who have expressed interest in the program or
have already been informed (even if only at a basic level) about the program
Use as follow-up to seminars, conferences, meetings, and mass mailings
Call to solicit interest, inform potential borrowers about the program, or
research sites that may benefit from BCRLF loans
Timing and Frequency
Use throughout the life of the BCRLF, in particular with lead time prior to
application deadline
Concentrate calls at times after the BCRLF has participated in conferences
and seminars or after a mass mailing has been completed
Advantages
If phone calls target a selected group, time may be well spent
Disadvantages
Calling large numbers of potential borrowers is time-consuming with
uncertain results
Given learning curve associated with the program, difficult to provide
comprehensive information in a single phone call
Use of Phone Calls in Other RLFs
Almost all RLF programs use phone calling to keep lines of communication open with existing
borrowers and to follow up with potential borrowers and other interested parties that have
expressed interest in the program. It is relatively rare, however, that an RLF program will "cold call"
potential borrowers that have not expressed interest in the program via some other mechanism.
BCRLF Marketing Guide and Tool Kit 37
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Seminars and Meetings with Interested Parties
Seminars and other meetings are educational gatherings designed to inform potential
borrowers and other interested groups about your BCRLF program. Meetings can
range from moderate-sized groups to smaller or individual meetings.
Implementation Guidelines
Develop informative presentations on borrower eligibility, application procedures,
how to combine BCRLF loans with other financing, and other BCRLF and
brownfields redevelopment topics
Give presentations to one type of group at a time; focus on that group's
particular interests and needs (for instance, developers may require more details
on application procedures while political officials need more general information
to be able to refer potential borrowers to the BCRLF)
Clearly describe the program, especially with respect to eligibility
Use larger meetings to identify key people with whom you should have one-on-
one meetings or telephone conversations
Timing and Frequency
Use throughout the life of the BCRLF
Only hold when appropriate attendees can participate
Avoid repetitiveness
Advantages
Enable significant amounts of information to be relayed, providing an opportunity
to ask and answer specific questions
Gives a face to the program, enabling a dialogue/relationship to develop
Disadvantages
Time and costs associated with developing a format and program for a seminar
Individual meetings are time consuming
Seminars in Other RLF's
Rochester, New York's Fee-For-Service Assessment Program conducts a seminar program on various
brownfields related topics. Typically, someone from the Economic Development Office speaks, but
they also invite outside speakers. Their seminars are about 1 hour in length.
Michigan Department of Environmental Quality's Hevitalization /?//which provides loans for
investigations, demolition and interim response activities provides an annual seminar on their
program to a large audience to spread the word about available funding.
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Conferences
Conferences are knowledge-sharing events on specific topics that are often
sponsored by government agencies or trade organizations. Many conferences
relevant to BCRLF Pilots and brownfields exist.
Implementation Guidelines
Attend conferences frequented by potential borrowers and other interested parties
Obtain a speaking role; use as an opportunity to address developers and other
interested groups
Staff a BCRLF exhibit booth
Timing and Frequency
Use throughout the life of the BCRLF
Attend as many relevant conferences as feasible given travel, time, and budgetary
constraints
Advantages
Reduced attendance costs for local conferences
Speaker registration fees often waived
Enables BCRLF staff to network and meet potential borrowers
Via speaking roles, provides an opportunity to broadly get the word out about
your BCRLF and to educate developers about the potential of sites in your area
Distribution of fact sheets, program brochures, and applications enabled by
staffed exhibit booths
Disadvantages
Travel required for some national or regional conferences
Time-consuming if not targeted
Conference Attendance and Participation by Other RLF's
New York State Clean Water State Revolving Fund personnel attend association conferences
such as the New York State Conference of Mayors and the New York Association of Counties.
They set up exhibit booths and consultant tables and plan to market their brownfield loans with
more prominent displays.
BCRLF Marketing Guide and Tool Kit 39
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Marketing with Commercial Lenders
Commercial banks and credit unions can serve as an important source of borrower
referrals for your BCRLF Pilot. Banks interact with developers and other project
sponsors who are seeking to finance their projects and will know of instances for
which a private financial package will be insufficient. Thus, developing and
maintaining a relationship with commercial banks in the Pilot's region is essential.
A key message to provide to bankers is that your BCRLF complements and increases,
rather than competes with, their business. Your BCRLF can help to generate new
development projects that will depend on banks for the majority of the financing (see
Chapter 1 for further discussion of combining BCRLF financing with bank financing).
Some activities that a BCRLF can use to involve banks in marketing its program are
listed below.
Banker's conference. Host a conference, one-day seminar, or roundtable for
bankers. Topics can include both national and local brownfields and development
issues, BCRLF program requirements and changes, and State and national
legislative and programmatic updates.
Banker's reference book. Develop a notebook that describes the BCRLF,
which would include financial assistance offered, terms of assistance, and
program services. Update and distribute to all area bankers annually.
Banker bulletin. Prepare a newsletter and send to all banks in the BCRLF's
region. The publication should be specifically targeted to bankers and feature
detailed loan program information, helpful hints, and current information about
banks in the region.
Display board. Request permission to place a display board with BCRLF
brochures in lobbies of area commercial banks with real estate clientele.
Bank visits. BCRLF staff may wish to visit area bankers on a routine basis to
respond to questions about the program and encourage bankers to make
appropriate referrals to the BCRLF.
40 BCRLF Marketing Guide and Tool Kit
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Marketing to Interested Borrowers
Through a well-constructed outreach strategy made up of a combination of the
outreach approaches described in the previous section, your BCRLF will effectively
initiate communication with potential borrowers. Following initial contact, your
BCRLF should follow through with individual meetings and phone calls. Meetings
between BCRLF staff and each potential borrower are the cornerstone of one-on-
one marketing and will help ensure that as many potential borrowers as possible and
appropriate become loan recipients. This section builds on the outreach strategies
described earlier and lays out the components of effective direct sales.
One-on-One Meetings with Interested Borrowers
To "sell" a loan, you may need to conduct a series of meetings with each potential
borrower who has expressed an interest in the program. These meetings serve as a
forum to build relationships with borrowers and to discuss the ability of a BCRLF
loan to assist them in their brownfields cleanup. Individual meetings can cover topics
such as how to complete an application, other sources of financing potentially
available, common sources of repayment, how to meet environmental, procurement,
and legal requirements, and other relevant subjects applicable to each borrower.
Meetings enable a significant amount of information to be relayed. Your BCRLF can
acquire a detailed understanding of the interested borrower's needs and the borrower
is provided with an opportunity to ask specific questions. Meetings, however, are
fairly time-consuming. Make sure that each meeting is valuable by targeting truly
interested borrowers and arriving fully-prepared.
Provision of Technical Assistance to Interested Borrowers
As part of Step 2 - Product and Program Development, your BCRLF will have
decided what, if any, technical assistance you will provide to potential borrowers. As
mentioned in that chapter of this guide, your BCRLF can provide technical assistance
either directly or indirectly through partnering organizations. This section focuses on
the forms of technical assistance that may be necessary to move a potential borrower
through the loan application and project development process. The technical assistance
described focuses on assisting the borrower through the process to loan agreement.
Loan Application Assistance
Many borrowers are less sophisticated in finance matters and environmental or
other regulatory requirements than your BCRLF loan application demands. For
instance, potential borrowers may not be familiar with financial agreements or
standard government procedures. As a result, borrowers are likely to greatly
appreciate your assistance.
Technical advice, reminders about deadlines, and meetings with potential borrowers
(at their places of business, if possible) to discuss the BCRLF application process
will help the applicant throughout the process. Such assistance with the application
process could be essential in ensuring that a loan is made.
Selling the BCRLF
Identifying Target
Audience
Developing Outreach
Approaches
Marketing to
Interested Borrowers
Maximizing the
Effectiveness of
Communications
Key BCRLF Selling Points
Flexible repayment terms and
loan amortization
Ability to use funds to
purchase insurance
Flexibility in acceptable forms
of collateral
Simple application
Quick loan application review
Low or no processing fees
Low transaction costs
Ability to leverage Federal
financial involvement to attract
other sources of capital
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41
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- Potential
A
borrowers are
likely to need help in
identifying and
securing financing for
other project elements
and funding streams to
repay all sources of
financing.
Assistance with Financing Package
In many cases, borrowers will need to obtain financial support from many sources
to implement a comprehensive redevelopment project. In some instances, a BCRLF
loan may not cover all cleanup costs and further cleanup financing will need to be
identified. In all cases, BCRLF funds are prohibited from financing non-cleanup
related costs. Therefore, all construction financing must come from other sources.
Potential complementary sources of financing may include the following:
Commercial bank loans and short-term commercial paper
Payments by responsible parties or purchasers
HUD Community Development Block Grant funds
HUD grants from Brownfields Economic Development Initiative and Economic
Development Initiative programs in conjunction with Section 108 loan guarantees
State and Federal transportation funding/financing, including State Infrastructure
Bank and federal credit programs
Low income housing tax credits
State-level revolving loan funds, including Clean Water Act and Drinking Water
Act State Revolving Fund programs
State financial incentives including tax credits, loans, and grants
Local government loans, grants, and incentives
Empowerment Zones and Enterprise Communities funding
US Department of Agriculture programs
US Department of Commerce Economic Development Administration programs
General obligation bond proceeds
Revenue bond proceeds
Foundation grants
Corporate and individual donations
Assistance with Identifying Repayment Sources
In addition to other sources of up-front capital financing, your borrowers may need
help identifying funding streams to repay the BCRLF loan as well as the other
sources of financing. The identified repayment sources may be, but do not
necessarily need to be, directly related to the project. Examples include the following:
Sales revenue from resulting business
Income from subsequent property sale
Lease payments
Tax increment financing revenues
Long-term financing sources (with BCRLF as interim or bridge financing)
State and Federal grants
Foundation grants
Corporate and individual donations
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Maximizing the Effectiveness of Communications
All communication from your BCRLF should be clear and understandable,
encouraging interest in the program. This section outlines steps to ensure that
all means of communication are consistent in content and clear in message. This
section also discusses the importance of tracking communications with potential
borrowers and other interested parties to ensure appropriate follow-up, which
increases the likelihood of generating loans.
Reviewing Marketing Materials
All BCRLF program materials and marketing tools should undergo a review prior
to being released to the public. All materials should be checked for the following:
/ Consistency. All materials should state program information consistently.
Inconsistencies will cause confusion. Potential borrowers will not feel
comfortable with the program.
/ Accuracy. Materials must properly reflect your BCRLF's program requirements.
/ Clarity. Materials must clearly state factual points so that statements are not
misinterpreted.
/ Brevity. Information in materials should be easy to read, brief, and to-the-point.
/ Attractiveness. Materials should be in an attention-grabbing and graphically
inviting format.
/ Identity. Your BCRLF should have an identity that includes a name and perhaps
a symbol that can be placed on all Pilot materials. This symbol or logo will
improve recognition and awareness of the program throughout the community.
It also is important to remember that as your program develops and evolves,
information on your program will need to be updated. Materials should be easily
adapted to accommodate such changes.
Selling the BCRLF
Identifying Target
Audience
Developing Outreach
Approaches
Marketing to
Interested Borrowers
Maximizing the
Effectiveness of
Communications
)-As your program
evolves, you will
need to update your
marketing materials.
Keep this required
flexibility in mind in
the development stage.
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Tracking Communications
Over time, your BCRLF's staff will use various approaches to make contact with
potential borrowers and other interested parties. It is important to track the success
of each approach in generating loan agreements. This will help you make any
needed adjustments in your communication strategy over time.
An easily updated database will be a critical tool for tracking your BCRLF's
communications. The database should have fields for general contact information,
dates of contact, substance of conversations, and interests and needs of the potential
borrower. Your communications database can be developed with spreadsheet or
database software, depending on the preferences of your staff and the anticipated
level of data requirements.
44 BCRLFMarketing Guide and Tool Kit
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Summary and Action Item:
Developing BCRLF Outreach and Direct Sales Strategies
It is important to choose the right outreach approach and marketing strategy for
each audience you wish to reach. Every BCRLF serves a different community,
each with its own complement of site types, cast of redevelopers, and institutional
arrangements. The examples below offer illustrations of the development of a
targeted program of outreach and direct sales strategies. You should build your own
communication program once you have conducted the necessary market research
and developed technical components of your BCRLF program.
BCRLF A-Brown City
Developed a communications plan and budget, with annual updates
Developed a brochure and a preliminary interest form
Developed relationships with local commercial banks and realtors by which they will refer
developers to their program
Developed a fact sheet on eligibility requirements for borrowers and sites
Established links to the BCRLF's web site on Brown City's Department of Economic Development and
Department of Environment web sites
Attends an annual conference sponsored by a local developers association, speaks on a
brownfields panel, and sets up a booth with program materials
Places follow-up calls to contacts made at the conference and in response to completed
preliminary interest forms received
BCRLF B - State of Brownfields, Coalition with Industry City and Abandonment City
Developed a communications plan and budget, with semi-annual update
Developed a brochure and a preliminary interest form
Developed BCRLF section in Department of Economic Development's quarterly brownfields
newsletter
Developed fact sheets on program purpose and eligibility
Developed web site
Attends conferences sponsored by realtor and developer associations
Conducts an annual mass mailing to realtors, developers, bankers, and businesses in the two
coalition cities
Places follow-up phone calls to contacts made at the conferences as well as the recipients of
the mass mailing
Conducts individual meetings, as appropriate
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46 BCRLFMarketing Guide and Tool Kit
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Step 4. Loan Closing:
Signing and Servicing Your Loans
The final step in the BCRLF marketing chain is making and servicing a loan.
Until a loan is actually made, the marketing process is not complete. Moreover,
continued program marketing should continue throughout the life of a loan.
The marketing function at this stage is to ensure that the borrower is informed and
in agreement with all loan terms and that the implementation of the loan runs
smoothly.
Communication instruments that are critical to the deal-closing phase include: the loan
application; the loan agreement and related documentation; and finally, fact sheets
and publicity to announce the loan and the cleanup project, as appropriate.
Loan Closing and
Support
Key Ingredients of a
Successful Loan
Understanding How
Loans Can Fall Apart
Avoiding
Pitfalls
Solid
Application
Strong
Project
Good
Communication
Components of Deal Closing
Loan application
Closing schedule
Loan agreement and
documentation
Escrow and loan servicing
agreements, if necessary
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Key Ingredients of a Successful Loan
Loan Closing and
Support
Key Ingredients of a
Successful Loan
Understanding How
Loans Can Fall Apart
A loan is successfully closed when the borrower understands and concurs with all
components of the loan agreement. Your BCRLF has direct control over a number
of the key features of successful loan closings, as listed below. For those items over
which you do not have direct control, your BCRLF can contribute ideas and technical
support. Taking a hands-on approach with each potential borrower is essential at this
stage. Clear and timely communications about your BCRLF program and the loan
you and the borrower are negotiating will help ensure both a successful loan and
a successful program.
Some key features of successful loans include the following:
A strong cleanup and redevelopment project
A borrower that has taken ownership of the process
A hands-on approach by the BCRLF
Clearly identified repayment sources
Flexible loan terms that meet the borrower's specific needs
Personal meeting(s) with the borrower quickly after loan application approval
Discussion of all details of the loan terms and any conditions that may cause
problems
Identification of documentation necessary to properly close the loan
A clearly articulated and adhered to timetable for loan closing
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Understanding How Loans Can Fall Apart
BCRLF loans can unravel or be delayed for numerous reasons. It is important
to be aware of some of the more common danger signs and to take appropriate
preventative steps. The two primary reasons that loans can fall apart during loan
agreement development are described below. The first is outside the BCRLF's
direct control and the second is only partially within your control.
For both, you can play a critical supporting role.
The brownfields redevelopment project does not move forward because:
Project costs escalate beyond the borrower's ability to afford the project;
Site requirements and/or costs make the project impractical;
The borrower has a change in ownership and/or control;
The financial strength of the borrower deteriorates; and/or
Proper zoning and clearances cannot be obtained.
Available financing (including BCRLF and other components of the financing
package) does not meet the needs of the potential borrower because:
Loan size is not adequate for cleanup costs and other funding or financing for
cleanup is not attainable;
Timing is too slow for needed proj ect start date;
Interest rate is too high and, therefore, costly to the overall redevelopment proj ect;
and/or
Repayment terms do not accommodate anticipated timing of repayment revenue
stream from the redevelopment project.
While many of the causes for loan deal failure are beyond the direct control of your
BCRLF, knowledge of what can go wrong can help you take some preventative
measures. Providing borrowers with assistance to help save the project will help
ensure successful cleanup and redevelopment occurs.
Loan Closing and
Support
Key Ingredients of a
Successful Loan
Understanding How
Loans Can Fall Apart
)-While many of
the causes for
projects collapsing
are beyond the control
of the BCRLF, you often
will be an important
player to help
borrowers get their
deals back on track.
Summary and Action Item:
Developing a Loan Closing Game Plan
Following through on the details that lead to deal closing will ensure that a
potential customer actually becomes a borrower. Working with your regional EPA
brownfields office, as well as local, state, and other Federal officials throughout
the process - especially in the development of loan documents - will greatly aid
in implementing a successful deal. Developing pro forma loan documents and loan
servicing agreements also can aid in the loan closing process. Finally, being aware
of potential pitfalls and taking preventative measures to avoid such scenarios will
help maximize the effectiveness of your deal closing process.
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50 BCRLFMarketing Guide and Tool Kit
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Retracing the Steps:
Assembling Your BCRLF Marketing Plan
Following the four marketing steps described in this guide can take you through
the development of your BCRLF marketing plan. As a summary, the steps are:
Step 1. Market Research, including identification of customers and sites,
other sources of financing, and how to best position the BCRLF loan to
meet financing needs in your market.
Step 2. Product and Program Development, or the development of loan
features and program parameters and services to meet your market's needs.
Step 3. Selling the BCRLF, including development of a communications
strategy comprised of general outreach approaches and direct selling
techniques.
Step 4. Loan Closing, including the steps necessary to come to a loan
agreement as well as the ongoing technical support and communications
required.
Taking the actions suggested within each of these steps will help you both to
develop a comprehensive and strategic marketing plan and to implement your
program. Your marketing plan does not have to be extensive. Bullets, checklists,
flowcharts, and other shortcuts can be used to keep it concise and focused (see
sample Marketing Plan Table of Contents on the following page).
Over your BCRLF's life, you will undoubtedly revise your marketing plan.
Your BCRLF's success depends, in part, on your ability to recognize changes
in the market and adjust your marketing plan accordingly. Items to track to
ensure your marketing plan is aligned with your market include:
Overall demand for loans
Eligible sites
Availability of other funding
Economic dynamics
Political priorities
Knowledge about your program among potential
borrowers and other interested parties
Reviewing the four steps of marketing throughout the life of your BCRLF
will ensure that your marketing plan contributes to the overall success of
your BCRLF and related brownfields initiatives.
Market Research
Defining Your Market
Positioning a BCRLF Loan in a
Redevelopment Financing Package
Product & Program
Development
Developing Loan Products
Structuring Your Program
Integrating Services
Building Staff Skills & Awareness
Selling the BCRLF
Identifying Target Audience
Developing Outreach Approaches
Marketing to Interested Borrowers
Maximizing the Effectiveness of
Communications
Loan Closing and Support
Key Ingredients of a Successful Loan
Understanding How Loans Can Fall
Apart
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51
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Sample BCRLF Marketing Plan
Table of Contents
I. Market Research R1
A. BCRLF Market Profile P.2
Potential Borrowers P.2
Potential Sites P3
Needed Loan Structures P.3
B. BCRLF Market Niche P4
Other Sources of Financing P.4
BCRLF Role in Cleanup and Redevelopment Financing P.4
II. Product and Program Development P.5
A. Loan Products to Be Offered P.5
B. Planned BCRLF Program Structure P.5
C. Technical Support Services to Be Offered P.6
D. Required Staff Training P.6
III. Outreach and Sales P7
A. Target Audience P.7
B. Outreach Strategy and Tools P.8
C. Direct Marketing Strategy and Tools P.8
D. Outreach Implementation Timeline and Milestones P.8
IV. Loan Closing and Servicing P.9
A. Pro Forma Loan Documents P.9
B. Schedule Templates P.10
C. Loan Servicing Agreements P.11
D. Recordkeeping Requirements P.12
52 BCRLF Marketing Guide and Tool Kit
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Appendix:
Marketing Partners and Resources
EPA Regional Office BCRLF Coordinators and Regional Brownfields Home Pages
Region 1 (CT, ME, MA, NH, RI, VT)
Lynne Jennings
John F. Kennedy Federal Building
One Congress Street, Suite 1100 (HIO)
Boston, MA 02114-2023
(p) 617-918-1210, (f) 617-918-1291,
http: //www. epa. gov/regionO 1 /remed/brnfld/
Region 2 (NJ, NY, PR, VI)
Larry D'Andrea
290 Broadway, 18th Floor
New York, NY 10007-1866
(p) 212-637-4314, (f) 212-637-4360
http://www.epa.gov/r02earth/superfnd/brownfld/
bfmainpg.htm
Region 3 (DE, DC, MD, PA, VA, WV)
Sherry Gallagher
1650 Arch Street
Philadelphia, PA 19103-2029
(p) 215-814-3211, (f) 215-814-3002
http: //www epa. gov/reg3 hwmd/bro wnfld/hmpage 1. htm
Region 4 (AL, FL, GA, KY, MS, NC, SC, TN)
Wanda Jennings
Atlanta Federal Center
61 Forsyth Street
Atlanta, GA 30303
(p) 404-562-8682, (f) 404-562-8628
http: //www epa. gov/region4/wastepgs/bro wnfpgs/bf. htm
Region 5 (IL, IN, MI, MN, OH, WI)
Deborah Orr
77 West Jackson Boulevard (MC SE-4J)
Chicago, IL 60604-3507
(p) 312-886-7576, (f) 312-886-4071
http://www.epa.gov/R5Brownfields/
Region 6 (AR, LA, NM, OK, TX)
Roger Hancock
First Interstate Bank Tower at Fountain Place
1445 Ross Avenue, Suite 1200
Dallas, TX 75202-2733
(p) 214-665-6688, (f) 214-665-6660
http://www.epa.gov/earthlr6/6sf/bfpages/sfbfhome.htm
Region 7 (IA, KS, MO, NE)
Debi Morey
901 N 5th Street
Kansas City, KS 66101-2728
(p) 913-551-7593, (f) 913-551-7063
http://www.epa.gov/region07/specinit/brown/
brownfields.htm
Region 8 (CO, MT, ND, SD, UT, WY)
Tom Pike
999 18th Street, Suite 500 (EPR)
Denver, CO 80202-2405
(p) 303-312-6982, (f) 303-820-5656
http ://www. epa. gov/regionO 8/cross/brown/brownf. html
Region 9 (AZ, CA, HI, NV, AS, GU)
Scott Minor
75 Hawthorne Street, SFD-1-1
San Francisco, CA 94105
(p) 415-744-1489, (f) 415-744-1796
http ://www. epa. gov/region09/waste/brown/index. html
Region 10 (AK, ID, OR, WA)
Timothy Brincefield
1200 Sixth Avenue
Seattle, WA 98101
(p) 206-553-2100, (f) 206-553-0124
http://epainotesl.rtpnc.epa.gov:7777/rlO/cleanup.nsf/
webpage/Brownfields
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National and Regional Bankers' Associations
American Bankers Association
(202)663-5000
http: //www. aba. com
National Bankers Association
(202) 588-5432
http ://www. nationalbankers. org/
America's Community Bankers
(202)857-3100
http: //www. acbankers. org
Consumer Bankers Association
(703)276-1750
http: //www. cbanet. org
State Bankers' Associations
Independent Bankers Association of America
(800) 422-7285
http ://www. ibaa. org
Independent Community Bankers of America
(202)659-8111
Community Bank League of New England
(617)542-0515
http://www.cblne.org
Bank Marketing Association
(202) 663-5268
http ://www. bmanet. org/
Alabama Bankers Association
(334)834-1890
http ://www. alabamabankers. org
Community Bankers Association of Alabama
(334) 244-9456
http ://www. cbaaonline. com
Alaska Mortgage Bankers Association
(907)277-0701
http ://www. mortgagemag. com/guide/c004/c004540. htm
Arizona Mortgage Bankers Association
(602)953-6151
California Independent Bankers
(909) 788-2265
http ://www. cib.org
Independent Bankers of Colorado
(303) 832-2000
http ://www. independentbankers. denver. co. us
Connecticut Bankers Association
(860)527-5161
http: //www. ctbank. com
Connecticut Community Bankers
(860)567-9401
Arkansas Bankers Association
(501)376-3741
http: //www. arkbankers. org
Arkansas Community Bankers
(501)525-1634
http://www.acbonline.org
California Bankers Association
(415)284-6999
http ://www. calbankers. com
Delaware Bankers Association
http: //www. debankers. com
Florida Bankers Association
(850) 224-2265
http: //www. floridabankers. com
Georgia Bankers Association
(404)522-1501
http ://www. gabankers. com
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Community Bankers Association of Georgia
(770) 541 -4490 or (800) 648-8215
http ://www. cbaofga. com/index, html
Illinois Bankers Association
http ://www. ilbanker. com
Louisiana Bankers Association
(225)387-3282
http ://www. Iba. org
Maine Bankers Association
http ://www. mainebankers. com
Community Bankers Association of Illinois
(217)529-2265
http: //www. cbai. com
Indiana Bankers Association
(317)921-3135
http ://www. inbankers. org
Community Bankers Association of Indiana
(317)595-6810
http: //www. cbai. org
Iowa Bankers Association
(515)286-4300
http ://www. iabankers. com
Iowa Independent Bankers
(515)453-1495
Kansas Bankers Association
(785) 232-3444
http://www.ink.org/public/kbank
Community Bankers Association of Kansas
(785)271-1404
Kentucky Bankers Association
(502) 582-2453
http ://www. kybanks. com
Community Bankers of Kentucky, Inc.
(502) 584-9775
Community Bankers of Louisiana
(225) 927-9022
Maine Association of Community Banks
(207)791-8400
Maryland Bankers Association
(410)269-5977
http ://www. mdbankers. com
Massachusetts Bankers Association
(617)523-7595
http ://www. mas sbankers. org
Massachusetts Independent Bankers Association, Inc.
(978) 465-5555
Michigan Bankers Association
(517)485-3600
http ://www. mibankers. com
Michigan Association of Community Banks
(517)336-4430
Minnesota Bankers Association
(612)835-3900
http ://www2. minnbankcenter. org/mba/aboutmba. htm
Independent Community Bankers of Minnesota
(651)687-9080
Missouri Bankers Association
(573)636-8151
http: //www. mobankers. com
Missouri Independent Bankers Association
(816)471-4404
http: //www. miba. org
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Montana Bankers Association
(406)443-4121
Montana Independent Bankers
(406)449-3811
Nebraska Bankers Association
(402)474-1555
http ://www. nebankers. org
Nebraska Independent Bankers Association
(402) 474-4662
Community Bankers Association of New Hampshire
(603)536-0001
Community Bankers Association of New Jersey
(904)850-9010
New Mexico Bankers Association
(505) 822-7900
http ://www. nmbankers. com
Independent Community Bankers Association of
New Mexico
(505)327-2151
http: //www. icba. nm. org
Independent Bankers Association of New York State
(518)436-4646
North Carolina Bankers Association
(919)781-7979
http ://www. nebankers. org
Independent Community Banks of North Dakota
(701)258-7121
http: //www. icbnd. com
Ohio Bankers Association
(614)221-5121
http ://www. obanet. com
Community Bankers Association of Ohio
(614)846-8124
http: //www. cbao. com
Oklahoma Bankers Association
(405) 424-5252
http: //www. oba. com
Community Bankers Association of Oklahoma
(405)524-4122
Oregon Bankers Association
(503)581-3522
http: //www. oregonbankers. com
Pennsylvania Bankers Association
(717)255-6900
http ://www. pabanker. com
Pennsylvania Association of Community Bankers
(717)231-7447
http ://pafindit. com/pacb
South Carolina Bankers Association
(803)779-0850
http://www. scbankers. org
Independent Banks of South Carolina
(803)772-5354
http://www.ibsc.org
Independent Community Bankers of South Dakota
(605) 996-9329
Tennessee Bankers Association
(615)244-4871
http://tnbankers.org
Independent Bankers Division of Tennessee Bankers
Association
(901)795-4777
Texas Bankers Association
(512)472-8388
http ://www.texas bankers, com
Independent Bankers Association of Texas
(512)474-6889
http: //www. ibat. org
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Utah Bankers Association
http ://www. uba. org
Vermont Bankers Association
(802)229-0341
Virginia Bankers Association
(804)819-4701
http: //www. vabankers. org
Virginia Association of Community Banks
(804)217-8250
http: //www. vacb. org
Washington Independent Community
Bankers Association
(425) 688-0495
Developer/Real Estate Associations
West Virginia Bankers Association
(304)343-8838
http: //www. wvbankers. org
West Virginia Association of Community Bankers
(304) 254-9822
Wisconsin Bankers Association
(608)441-1200
http://www.wisbank.com
Community Bankers of Wisconsin
(608)833-4229
http: //www communitybankers. org
Wyoming Bankers Association
(307)638-5008
National Association of Industrial and Commercial
Properties
(617)965-0100
http ://www. naiopma. org
American Industrial Real Estate Association
(213)687-8777
http: //www. airea. com
American Real Estate Society
(216)687-4732
http ://www.aresnet. org
American Real Estate & Urban Economics
Association
(812)855-7794
http: //www. areuea. org
Counselors of Real Estate
(312)329-8427
http: //www. ere. org
International Development Research Council
(770) 446-8955
http: //www idrc. org
National Association of Realtors
http ://www. areuea. org/nar. htm
Society of Industrial and Office Realtors
(202)737-1150
http ://www. sior. com
Women in Real Estate
http: //www hia. com/hia/wire/wi-home. html
Associated Owners & Developers
(703) 734-2397
http://www.tvontheweb.com/channels/construction/
profdirectory/htmlassociated_owners developers.html
ICI World Real Estate Network:
Industrial, Commercial, Network
(877)272-1721
http ://www. ici world, com/html/welcome. htm
Developer/real estate directory
http://barryinc.com/idx/svc.htm
Vandema: Commercial Real Estate Resources
http://www.vandema.com/DirectoryFram.htm
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Brownfield and Land Use Associations
National Brownfields Association
(847)870-8208
http://www.brownfieldassociation.org
Urban Land Institute
(202) 624-7000
http://www.uli.org/indexJS.htm
The Brownfields Non-Profits Network
http ://www brownfieldsnet. org/
Center for Land Renewal
(717)230-9700
California Center for Land Recycling
(415)820-2080
http: //www. cclr. org/
Council for Urban Economic Development
(202)223-4735
http: //www. cued. org/
Northeast-Midwest Institute
(202) 544-5200
http: //www. nemw. org/
The Trust for Public Land
(415)495-4014
http: //www. igc. ape. org/tpl/
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