Planting a new seed for growth'

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• AgRE State
• Savings and Loan Associations
• Community Reinvestment
• Act Plan
• (Presentation to Investors)

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Recently on TV ?

• BREAKING NEWS

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A New Savings and Loan Assoc. in Solon!!!!
403 Fifth Street
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• AgRE is Very Excited to Address The Concerns of
  the Community

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Whats the Deal with CRA?

• Before the CRA, many bankers excluded low-income
  neighborhoods and people of color from their
  lending products, investments, and financial
  services - a practice known as "redlining"
• Community activists coined the term when they
  discovered that the failure of banks to make
  loans in some low-income neighborhoods was so
  geographically distinct, that it was easy to draw
  red lines on maps to delineate the practices
• In response, Congress passed the Community
  Reinvestment Act

http//www.policylink.org/EDTK/CRA/default.html
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The Community Reinvestment Act

• The Community Reinvestment Act (CRA), enacted by
  Congress in 1977 (12 U.S.C. 2901) and implemented
  by Regulations 12 CFR parts 25, 228, 345, and
  563e,
• Intended to encourage depository institutions to
  help meet the credit needs of the communities in
  which they operate.

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How Has CRA Helped Communities?

• CRA has helped community organizations win
  increased investments, charitable contributions,
  branches, and access to loans and financial
  services

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Why Does AgRE Care About CRA?

• Philanthropic Point of View
• We believe that we should do our part in society,
  and ensure all people have access to financial
  services. Access to credit and financial
  services is critical to all communities,
  especially those that are of low and moderate
  income.
• Business Point of View
• Since AgRE is the only Savings and Loan Assoc. in
  Iowa, we need consumer buy-in, and trust in order
  to gain business. The hope is giving back to the
  community in the form of loans, grants, and
  educational programs will develop trust among
  residents for our financial institution
• Our CRA commitments can also be an opportunity to
  distinguish ourselves from local competitors

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How did We Create our CRA Plan?

• Step 1
• Surveys of neighborhood residents,
  community-based organizations and community
  newspaper readers to evaluate if banks are
  serving the needs of the community
• Competitive Analysis
• Step 2
• Data analysis, using public lending data such as
  that available on home mortgages (Home Mortgage
  Disclosure Act (HMDA) or small businesses
• Step 3
• Reviewed survey and data information to identify
  community needs and goals.

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The Community of Solon, Iowa
Photographs by Karen Kothari
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Community of Solon, Iowa

• Home to farmers, and small business owners
  working together to build a better future for
  their community

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And, Future Home to AgRE
403 Fifth Street
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• Let the People Speak

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Local Restaurant Owners

• Katie Keas Redhead (Local Restaurant)
• Biggest problem during non-seasonal times, the
  Redhead must have fresh greens, and produce
  shipped in from outside the state, which is more
  expensive
• Katie also prefers to buy from local farmers,
  who in turn, support the Redhead by coming by for
  a meal

Picture taken at the Redhead in Solon, Iowa
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Local Small Business Owners

• Meeting with Doug Linder, Publisher
• Small Business Hopes
• Mr. Linder would like to see a small business
  forgivable loan program
• Hed also like to see the city have one grant per
  year for small business owners _at_ zero percent
  interest
• Real Estate Hopes
• Incentives to take on the costs of moving from
  businesses zoned industrially to the downtown
  area

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Farmers

• Farmers are forced to hold second jobs in order
  to have a steady stream of income throughout the
  year.
• This takes a toll on the farmers, and they are
  required to travel long distances to find work

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What is Our Competitor Doing for the Community?
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Recent Meeting with SVP, Don Ellis, of Solon Bank

• Mr. Ellis, and Solon Bank give back to the
  community primarily in the form of loans
• Also, small grants to local clubs or do good
  clubs, as Mr. Ellis calls them (the womens club,
  library club, optimist club, beefdays event, etc)
• Solon Bank board members are active in the
  community (teaching at the high school,
  volunteering, etc.)
• Solon Bank prefers not to do larger projects
  because they will not profit from these projects

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AgREs Geographic Area by Median Family Income
http//www.census.gov/ftp/pub/geo/www/tiger/tigerm
ap.html
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• Creating a Niche for AgRE

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1 Barn and Mill Renovation Loans
Photographs taken by Karen Kothari
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Partner with Uptown Main Earthrise Neighborhood
Homes

• Barn and mill renovation can be very expensive,
  but vital to a farmers job
• Going with the theme of community members
  helping each other, we decided to partner with
  Uptown Main Earthrise, who has a history of
  conducting barn renovations

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2 Micro Financing, In a Sense

• Low and moderate income persons often need small
  loans. However, most banks will deny the low
  (for example 2000), and ask that they put it on
  their credit card
• However, credit card interest fees are very high
• AgRE will offer small loans (under 3000), and
  charge an interest rate lower than that of credit
  cards
• This also applies to small business owners

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3 Small Business Start-Up Grant

• Small businesses create two out of every three
  new jobs and account for nearly half of America's
  overall employment.
• They have played a vital role in helping our
  economy add more than 5.1 million new jobs since
  August 2003 and have helped reduce America's
  unemployment rate to 4.7 percent, below the
  average rate of the 1960s, 1970s, 1980s, and
  1990s.
• Small businesses are also vital for supporting
  our communities.

http//www.whitehouse.gov/infocus/smallbusiness/
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3 contd Contest

• Grant will be in the form of a contest evaluated
  by members of the community and AgRE
• Each start-up small business owner will submit a
  business plan to the board
• Board will choose a winner based on the following
  factors (but not limited to)
• Business plan
• Financial and long term viability
• Innovation
• Support to the community
• Credentials of small business owner
• Winner 3000 grant plus interest free loan to
  start their small business
• Oversight
• Board will oversee operations

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4 Educational Programs for Farmers

• Suffering cash flow issues throughout the year
• Partnership
• Coe College
• Grinnell College
• University of Iowa Business School
• University of Iowa College of Law Clinical
  Programs
• Ideas
• Investment advice
• Creation of bed and breakfasts on farms
• Marketing crops throughout the nation, rather
  solely in Iowa
• Creation of website for online purchases

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5 Downtown Revitatlization

• Incentive grants to take on moving costs from
  industrial areas to downtown
• Long Term Goal
• Attract new graduates looking to stay in Iowa,
  but wanting to reside in a quaint area
• Residents can commute to Iowa City, and Cedar
  Rapids
• Continue to keep businesses growing and strong

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6 Loan to Amtrak

• High gas prices make it expensive for farmers,
  and other residents that travel to Iowa City and
  Cedar Rapids for their daily jobs
• AgRE would like to help
• Amtrak and AgRE have partnered to create a new
  rail line from Solon to the Cedar Rapids area,
  and to Iowa City and Coralville

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7 Holiday Generosity

• The holidays are a very difficult time for many
  people, for various reasons
• AgRE wants to help
• We will conduct two food, clothing and toy drives
  in our building (Thanksgiving, and Christmas)
• Matching Program
• For every dollar, toy, food item, and clothing
  item someone brings in, AgRE will match it

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8 Tax Preparation

• Tax preparation can be very confusing, but
  beneficial to those who cannot afford to pay to
  have their taxes done
• AgRE has partnered with H R Block to help 50
  people in Solon and the surrounding area to
  navigate the tax code
• Example Hope Scholarship Fund and the Lifetime
  Learning Credit

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And of Course, Hands on Involvement by the Board

• Our board of directors pledges to take part in
  local community activity, serve on boards, and
  give back to the community

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Conclusion

• AgRE is very excited to meet the needs of Solon
  and the surrounding areas
• Investors should feel confident that we have put
  together a sound community reinvestment plan

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• Thank You