2018 Annual Report

States with NAC Closed Loans 12

USDA Approval Rate 93%

A Year of Growth

$1.3B Loans Underwritten

Purposeful People are Attracted to Purposeful Companies In 2018, NAC substantially increased head count, adding new team mem- bers who bring a wide variety of back- grounds and expertise. A USDA loan requires a special mix of people and talent to source, underwrite, and ser- vice. The right skill set combines exten- sive banking and credit expertise, keen understanding of the dynamics and trade-offs of risk and return tradition- ally found in private equity, a high level of attention to detail, and an entrepre- neurial spirit. NAC’s success in 2018 was largely a result of combining the right teamwith these essential skill sets. Nationwide Reach Expands Through Strengthened Relationships with State Offices Each USDA B&I loan must be approved by the USDA Rural Development of- fice in the state in which the loan was originated. NAC has now closed loans in nearly a dozen states and has active projects in over half of the U.S. Main- taining a sharp focus on USDA lending has enabled NAC to efficiently sub- mit loan requests and subsequently receive approval on 93% of the firm’s submitted packages from a wide range of states. This success is a result of an alignment of NAC’s loan struc- tures and the USDA’s program regu- lations, but more importantly, a com- mitment to the heart and mission of both NAC and the USDA B&I program.

Loan Originations Triple from Previous Year The NAC team closed over $60M in USDA B&I loans in 2018, representing 207% year-over-year growth from the prior year. This significant increase in production was driven by expanding NAC’s nationwide reach, strengthen- ing NAC’s market reputation among industry participants, and establish- ing several effective sourcing chan- nels. NAC was also able to grow our pipeline to over $300M eligible loans setting the stage for an even greater origination volume in 2019. In 2017, NAC formed a strategic fi- nancial relationship with a leading commercial bank. NAC and the bank expanded the relationship in 2018 to provide NAC with even greater ac- cess to capital to fund loans across the country. NAC has proven our commit- ment to financial stability and cred- it-worthiness demonstrated by our strong historical performance, clean track record of third-party audits and credit exams, and close adherence to all relevant compliance and regula- tions. Each of these factors has played an essential role in enabling NAC to strengthen and grow our balance sheet and secure long term investment from investors and financial institutions. Access to Capital Broadens with Senior Banking Relationship

In 2018, NAC was the fastest growing USDA B&I Lender in the country. $60M Loans Originated

Cumulative Originations $110M

Revenue Growth 128%

Cumulative Originations


Origination Growth 207%



Loan Paid In Full 1

Jobs Created/ Saved



Loans in Delinquency 0

Closed Deals 22





“NAC’s exciting growth in 2018 was driven by a combination of hustle and teamwork. While those factors will always remain an important part of NAC’s culture, perhaps the Company’s greatest lesson from the year was the importance of systematizing the lead generation and qualification process. NAC will invest over $500,000 in 2019 into systematic marketing and business intelligence. This investment is already yielding fruit via the generation of more than 10 new leads each week. The steady increase of new leads combined with the expansion of a very talented commercial lending team gives me great optimism that we can meet NAC’s very ambitious goals for 2019.” -Eric Johnson, President

Loan Losses $0

North Avenue Capital Quick Stats 2018



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