RD212 - Virginia Small Business Financing Authority (A Component Unit of the Commonwealth of Virginia) Management’s Discussion and Analysis and Basic Financial Statements and Supplementary Information for the years ending June 30, 2013 and 2012

Executive Summary:
This section of the Virginia Small Business Financing Authority’s (the “Authority”) annual financial report presents management’s discussion and analysis of the Authority’s financial performance during the fiscal years that ended June 30, 2013 and 2012. Please read it in conjunction with the Authority’s financial statements, which follow this section. The annual financial report consists of three parts, management’s discussion and analysis, the basic financial statements and the notes to the financial statement.


The following information represents a comparative analysis of key financial aspects of the Authority’s operations between the years ended June 30, 2013 and June 30, 2012.

• For the first time in several years, the amount of money in Capital Access Program reserve accounts has increased (+$96K) due to increased usage by the banks and a slowdown of claims received.

• Notes receivable outstandings have shown a small increase due to increased activity $467K.

• Bond fees collected increased $172K over 2012.

• Interest on loans dropped $46K primarily due to lower interest rates.

• Overall operating revenues increased $120K (note bond fees).

• Operating expenses increased $79K due to an increase in CAP activity (CAP matches are expensed), and increases in payroll expense.

• Department of Minority Business Enterprise transferred $102,616 in additional funds to the P.A.C.E. program.

• Two new loan programs were introduced during the 2nd half of FY 2013 under the SSBCI Fund: Cash Collateral Program and Loan Purchase Participation. Cash collateral was funded in FY '13 for several loans totaling $690K. Activity is expected to be robust during FY 2014 and into 2015 as word of the program spreads in the lending community. Loan Purchase Participation has not generated much interest with the banks.