Community Development Investments

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• Community Development Investments Tax Credits

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• What is MetaFund?

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What Are We?

• Community Development Corp
• Venture Capital Firm
• Private Equity Firm
• Non-Profit 501(c)(3) Opened Jan 2000
• 10M capital from 20 Oklahoma banks OK Finance
  Authorities CDFI Fund

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What Do We Do?

• We make CRA-qualifying equity near-equity
  investments throughout Oklahoma
• We facilitate accredited investment in tax
  credit-qualifying companies and projects
• We expect financial reward commensurate to our
  risk Were not a grant-maker at least,
  not intentionally

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How Can We Help You?

• Call us re any CI or R.E. prospect that is
  gt500k. It might qualify for a tax credit.
• Call us re any viable customer or prospect that
  is unbankable.
• Call us re any viable community development
  proposal or idea that is too risky or crazy for
  your bank to do.

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• What are the Tax Credits?

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New Markets Tax Credit

• 39 Federal Tax Credit (over 7 years) for
  Qualifying Loans or Investments
• 5 per year for first 3 years
• 6 per year for last 4 years
• Qualifying business must be in targeted or
  low-to-moderate-income census tract
• 80-85 or more of funds must remain in qualified
  investment for 7 years or be subject to recapture
• Must be made through a certified Community
  Development Entity (CDE), e.g., MetaFund

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Oklahoma Small Business Tax Credits

• 20 Oklahoma TC for investment in business that
• Is in metropolitan area
• Is not primarily engaged in oil gas
  exploration real estate development, sales, or
  rentals wholesale sales retail sales farming
  ranching banking lending or investing funds in
  other businesses
• 30 Oklahoma TC for investment in business that
• Has its principal place of business in a
  non-metropolitan area of the state and conducts
  the activity resulting in at least 75 of gross
  revenue from a non-metropolitan area
• Is engaged in a lawful activity under SIC
  Divisions A,C,D,E,F or I (with the exceptions of
  Major Groups 1 2 of Division A)

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Both OklahomaTax Credits

• Require that investments are in the form of
  equity, near-equity, or subordinated debt
  (minimum 5-yr amortization)
• Require that investments be in companies that
• Have at least 50 of employees or assets located
  in Oklahoma
• Qualify as small businesses under SBA guidelines
• Will not use funds for acquisition of another
  company for at least six months

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• Portfolio Examples

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Venture Capital

• MetaFund invested in convertible preferred stock
  of Advanced Academics (OKC), a complete online
  learning solution for students grades 7 through
  12. AAI, partnering with school districts,
  delivers accredited, state-correlated courses
  /or complete online high schools (free to
  students!) over the Web.

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Venture Capital

• MetaFund provided debt and convertible preferred
  stock to Weather Decision Technologies (Norman),
  which provides high-resolution, accurate weather
  information to businesses and governments to
  minimize weather-related risk.

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Near-Equity

• MetaFund provided convertible debt with a royalty
  agreement to Ideal Crane (Tulsa), a small
  manufacturer of electro-hydraulic truck-mounted
  service cranes.

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Housing

• MetaFund built three middle-income houses to help
  stimulate re-development of the historic, but
  distressed, Brady Heights neighborhood in Tulsa.

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Housing

• MetaFund invested half of the money to rehab a
  36-unit apartment complex. A bank lent the other
  half after MetaFunds equity investment.

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Housing

• MetaFund purchased thirty non-conforming,
  0-interest-rate loans from Central Oklahoma
  Habitat for Humanity.

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R.E. Development TCs

• MetaFund created a TC-qualifying loan/investment
  structure for 3 banks and several private
  investors to redevelop the Colcord Building,
  built in 1910 OKCs first skyscraper, as the
  Colcord Hotel.

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Private Equity

• MetaFund other investors bought the failing
  75-year-old Geophysical Research Company, a
  Tulsa-based manufacturer of down-hole pressure
  and temperature gauges used in the oil and gas
  industry.

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Contact MetaFund

• If you have a potential project
• Call us at [phone], or
• E-mail info_at_metafund.org, or
• See our Web site www.metafund.org