2013-01-30T13:52:31-06:00 2011-12-31 COHNREZNICK LLP 500 EAST PRATT STREET SUITE 200 BALTIMORE MD 212023100 990 2011-01-01 593814814 SEEDCO FINANCIAL SERVICES INC % KEVIN BUHSE SEED 2124730255 915 BROADWAY 17TH FLOOR NEW YORK NY 10010 KEVIN BUHSE 2013-02-01 true PHILIP H CORNBLATT CPA 4107834900 2011 2016-02-25 16:41:14Z EDWIN HONG INTERIM PRESIDENT 915 BROADWAY 17TH FLOOR NEW YORK NY 10010 8556236 false X WWW.SEEDCOFINANCIAL.ORG X 2005 NY TO PROVIDE AFFORDABLE FINANCING AND TECHNICAL ASSISTANCE TO NON-PROFIT ORGANIZATIONS, SMALL BUSINESSES, AND DEVELOPERS OF AFFORDABLE HOUSING AND COMMERCIAL PROJECTS IN ECONOMICALLY DISTRESSED COMMUNITIES. 7 4 46 0 8170416 4473400 2177303 4052962 43805 29695 481809 179 10873333 8556236 65301 501943 0 0 3325535 3517501 0 0 218664 6200065 9988153 9590901 14007597 1282432 -5451361 58211671 65357066 39936695 52533451 18274976 12823615 X SEEDCO FINANCIAL SERVICES, INC. (SEEDCO FINANCIAL)IS A NATIONAL, NON-PROFIT COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (CDFI). SEEDCO FINANCIAL WAS CREATED IN 2005 AS A WHOLLY-OWNED SUBSIDIARY OF SEEDCO, A NATIONAL NONPROFIT ORGANIZATION THAT CREATES ECONOMIC OPPORTUNITIES FOR JOB SEEKERS, WORKERS, AND SMALL BUSINESSES. SEEDCO FINANCIAL'S MISSION IS TO PROVIDE AFFORDABLE FINANCIAL AND TECHNICAL ASSISTANCE TO NON-PROFIT ORGANIZATIONS, SMALL BUSINESSES, AND DEVELOPERS OF AFFORDABLE HOUSING AND COMMERCIAL PROJECTS IN ECONOMICALLY DISTRESSED COMMUNITIES. SEEDCO FINANCIAL'S FINANCING PROGRAMS ARE DESIGNED TO FILL CAPITAL AND CAPACITY GAPS WITHIN LOCAL MARKETS. SEEDCO FINANCIAL IS HEADQUARTERED IN NEW YORK CITY WITH REGIONAL FIELD OFFICES IN ALABAMA AND LOUISIANA. false false 13022834 501943 2423318 Seedco Financial provides financing to enable businesses, nonprofits or developers to proceed with their business or real estate projects to the extent such financing benefits low Income Communities, low wage workers or fulfills a charitable purpose. It also offers an affordable source of working capital for organizations seeking to expand, re-locate, or restructure. Borrowers are typically considered to be "high risk" by traditional underwriting standards. However, Seedco Financial offsets a portion of the heightened risk by connecting borrowers to technical assistance, which IS provided either directly by Seedco Financial or through a network of community partners frequently, funds from government agencies and private sources offset potential loan losses associated with our highest-risk lending activities. Seedco Financial provides financing and business services to small businesses that cannot access affordable financing through traditional sources. Our small business borrowers come from a range of sectors and have used loans for working capital, purchasing Inventory and equipment; Improving leased or owned space, and other approved activities that help sustain and expand their businesses. The loan fund seeks to support businesses In underserved communities and businesses owned by underrepresented or disadvantaged groups such as women and minorities. Seedco Financial provides financing and business services to non profits that cannot access affordable financing through traditional sources Our nonprofit borrowers typically come from the human/social service and arts/culture sectors and have used loans for working capital, facilities development and other approved activities that help sustain and expand their operations. The loan fund seeks to support nonprofit organizations that provide supportive services to underserved citizens and communities and those that contribute to the cultural Vibrancy of the communities we serve. Seedco Financial provides financing and business services to real estate developers, nonprofit community-based lending organizations and human services nonprofit organizations that are working to encourage economic development Investment In low-Income communities nationwide. Our real estate Borrowers have used loans and New Markets Tax Credits for a range of projects including large-scale job development projects, small business development projects In low Income communities to aid low wage workers or prevent community deterioration, capacity-building of minority-serving Institutions and community facilities, anchor real estate projects that act as catalysts for community development In low- to moderate-Income neighborhoods, acquisition, rehabilitation, or new construction of commercial, residential, or mixed use projects, and affordable multi-family and special needs housing. The loan fund seeks to support Investments that generate Significant community Impacts In the form of new or retained jobs, community services or Increased economic opportunity. 13022834 true true false true false false false false true false true false false true true true false true false false false false false false false false false true true true false false false false false false false false false false false false false true true false false false true 48 0 true 46 true false false false false false false false false false false X 7 4 false false false false true true true true true false false true true true true true true true true false AL CO LA MD NY X KEVIN BUHSE 2129942727 915 BROADWAY 18TH FLOOR NEW YORK NY 10010 X MAURICE L COLEMAN 1.0 X X 0 0 0 RITA CARRILLO 1.0 X X 0 0 0 DOUGLAS JACKSON 1.0 X 0 0 0 CLIFFORD ROSENTHAL 1.0 X 0 0 0 CHERI MORIAL AUSBERRY 1.0 X 0 0 0 CARL MARBURY 1.0 X 0 0 0 LESLIE MITCHELL 1.0 X 0 0 0 GEORGE A PRUITT 1.0 X 0 0 0 BARBARA DWYER GUNN 35.0 X X 378275 0 18733 CHARLOTTE LEE 1.0 X 0 0 0 PAUL R FRANKE III 1.0 X 0 0 0 JAMES BASON 35.0 X 65161 0 2538 CATHY SLOSS JONES 1.0 X 0 0 0 EDWIN HONG 35.0 X 250574 0 17550 AISHA BENSON 35.0 X 128577 0 10550 KENNETH BREZENOFF 35.0 X 118198 15206 MARK MAHER 35.0 X 116256 0 1412 DEMETRIC DUCKETT 35.0 X 0 0 0 ANNE BUSH 35.0 X 166919 0 15930 ANDRE SUITE 35.0 X 166437 0 13130 1390397 0 95049 7 false true false ARENT FOX LLP PO BOX 644672 PITTSBURGH PA 15264 STRATEGIC PLANNING 178875 THE LEADING NICHE 3743 NORTH GODDARD ROAD LITHONIA GA 30038 PROGRAM DEVELOPMENT 105702 COHNREZNICK LLP 500 EAST PRATT STREET SUITE 200 BALTIMORE MD 21202 ACCOUNTING SERVICES 123000 3 168090 3571042 734268 4473400 LOAN INTEREST INCOME 900099 2349671 2349671 PROGRAM PROCESSING FEES 900099 73647 73647 NMTC INCOME FROM PARTNERSHIP 900099 1629644 1629644 4052962 29695 29695 0 0 0 0 0 0 MISCELLANEOUS 900099 179 179 179 8556236 4053141 29695 489610 489610 12333 12333 0 0 1390398 1390398 0 0 0 1522627 1185347 179229 158051 0 604476 518847 58185 27444 0 0 85650 81124 1856 2670 208336 119180 89156 0 82019 82019 0 0 0 0 567930 417274 138173 12483 13740 9231 4413 96 0 0 0 440584 390040 39064 11480 156466 140001 11200 5265 0 28035 27215 340 480 1052454 1052454 0 0 1614928 1469584 145344 0 14229 0 14229 0 0 RECRUITMENT & TEMP PERSONNEL 16320 12055 4265 0 SUPPLIES 71731 37840 33891 0 BOARD EXPENSES 3737 2724 1013 0 BANK CHARGES 13251 13092 159 0 5618743 5572466 45582 695 14007597 13022834 766099 218664 0 0 15768929 25122593 3819831 2041316 0 0 0 0 0 0 32490069 37512459 0 0 13311 0 69544 52819 30954 16725 1216002 289630 0 0 0 0 0 0 4872575 374343 58211671 65357066 1137889 366700 0 0 979423 29244 0 0 0 0 0 0 37731311 52057082 0 0 88072 80425 39936695 52533451 X 14672602 9679294 3602374 3144321 0 0 18274976 12823615 58211671 65357066 -5451361 X false true true X true true X 17645797 8153940 11422999 8170416 4473400 49866552 17645797 8153940 11422999 8170416 4473400 49866552 1594689 48271863 893720 522546 122251 43805 1135192 2717514 252908 114316 101450 474491 524326 1467491 54051557 0.89307 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 82019 82019 false SCHEDULE C, LOBBYING ACTIVITIES PART II - B, LINE I SEEDCO FINANCIAL SERVICES DOES NOT UNDERTAKE ANY ACTIVE LOBBYING ACTIVITIES, HOWEVER, IT DOES PAY A CONSULTING FIRM TO UNDERTAKE LOBBYING INITIATIVES ON ITS BEHALF. FOR THE YEAR ENDING DECEMBER 31, 2011, SEEDCO FINANCIAL SERVICES PAID ARENT FOX, LLP $82,019 TO LOBBY ON BEHALF OF SEEDCO FINANCIAL SERVICES ON ISSUES PERTINENT TO ITS TAX EXEMPT MISSIONS. ON FORM 990, PART VII, SEEDCO FINANCIAL SERVICES DISCLOSES THAT IT PAID ARENT FOX, LLP $179,875 IN FEES FOR THE YEAR ENDED DECEMBER 31, 2011. IN ADDITION TO THE DISCLOSED LOBBYING ACTIVITIES, ARENT FOX, LLP ALSO UNDERTAKES STRATEGIC PLANNING AND GOVERNMENTAL AFFAIRS ACTIVITIES (THAT DO NOT CONSTITUTE LOBBYING). false false 10491 10278 2631 59053 56770 14094 16725 0 REFUNDABLE CONTRACT ADVANCES 7288 DUE TO RELATED ORGANIZATION 41961 SWAP CONTRACT 31176 80425 8556236 14007597 -5451361 -5451361 8436176 8436176 120060 120060 8556236 13887537 13887537 120060 120060 14007597 fin 48 part iv, line 11f SFS has applied for and received a determination letter from the Internal Revenue Service (IRS) to be treated as a tax exempt entity pursuant to Section 501(c)(3) of the Internal Revenue Code and did not have any unrelated business income for the years ended December 31, 2011 and 2010. Due to its tax exempt status, SFS is not subject to income taxes. SFS is required to file and does file tax returns with the IRS and other taxing authorities. SFS' Form 990, Return of Organization Exempt from Income Tax, for the years ending 2008, 2009, and 2010 are subject to examination by the IRS, generally for three years after they were filed. FASB ASC 740, "Income Taxes," prescribes a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized upon adoption of this interpretation. ASC 740 also provides guidance on accounting for derecognition, interest and penalties, and classification and disclosure of matters related to uncertainty in income taxes. schedule d - reconciliation PART XII & PART XIII, LINE 4B PRIOR YEAR CONTRIBUTED FUNDS, REFUNDED BY SEEDCO FINANCIAL SERVICES - ($120,060). true LOYOLA UNIVERSITY 3330 N CAUSEWAY BOULEVARD SUITE 42 METAIRIE LA 70002 720408946 501(C)(3) 12012 UP DESIGN LLC 8 SOUTH FULLERTION AVENUE MONTCLAIR NJ 07042 223705476 65167 ROBINSON GROUP CONSULTING INC 1604 DARIEN CLUB DR DARIEN IL 60561 203195500 11250 KBL LLP 110 WALL STREET NEW YORK NY 10005 030525474 42500 FDG CREATIVE 1212 MOUNT VERNON STREET ORLANDO FL 32803 010638455 20666 DO-WAP AGENCY 201 ST CHARLES AVENUE SUITE 2500 NEW ORLEANS LA 70170 721470164 7667 ABARFR BUSINESS ADVISORY SERVICES 1375 BROADWAY 17TH FLOOR NEW YORK NY 10018 130436940 57500 BUREAU BLANK 273 GRAND STREET 6TH FLOOR NEW YORK NY 10002 201057120 17333 MADISYN CONSULTING SERVICES INC 246 MALCOLM X BOULEVARD NEW YORK NY 10027 133855794 15000 NEXT STREET FINANCIAL LLC 186 DUDLEY STREET SUITE 200 ROXBURY MA 02119 203265456 30000 THE MICHAELSON LAW FIRM 11 BROADWAY SUITE 615 NEW YORK NY 10004 272654282 60000 WISS AND COMPANY LLP 14 PENN PLAZA SUITE 300 NEW YORK NY 10122 221732349 11625 YES CFO LLC 55 MADISON AVENUE SUITE 400 MORRISTOWN NJ 07960 096444155 15000 SPARK INSITES 515 GIROD STREET NEW ORLEANS LA 70130 270287426 7334 WEB DEVELOPERS OF NEW YORK 130 OVERLOOK AVENUE NO4E HACKENSACK NJ 07601 383596411 20900 1 13 Economic Assistance 2 12333 MONITORING PART 1, LINE 2 Seedco Financial employs the below procedures to select professional services vendors to provide customized technical assistance services to its small business clients. Currently, we have sixteen vendors in New York and twelve vendors in Louisiana. These vendors are selected through an open and competitive selection process which entails three steps. Step #1 Seedco Financial issues a Request for Qualifications (RFQ) calling for applications from qualified vendors to join its vendor network RFQs are circulated through small business networks and associations and vendors are typically given three weeks to submit a Written response. Step #2 All applicants are given a fair and thorough review by a panel comprising Seedco Financial staff Applications are evaluated based on relevant experience and expertise, quality of services and competitive rates for services The panel is responsible for selecting shortlisted applicants for final interviews. Step #3 All shortlisted applicants are interviewed by the Seedco Financial selection panel Applicants are required to submit three references. The committee is responsible for verifying the business references provided by vendors. Finally, candidates who net all of the selection criteria are admitted into the vendor network Performance Management Seedco Financial Manages the performance of vendors by clearly outlining the program deliverables milestones, and payment schedule in a tRI-party agreement that is executed between Seedco Financial, the smAll business clients, and the professional services vendors. We divide each project into three phases with a staggered payment Model to ensure accountability and compliance from the vendors. In addition at the conclusion of each phase, our smell business clients and the vendors are required to correlate a standardized feedback form indicating their consent to MOVE forward with the project before the vendors receive the payment for the subsequent phase. These steps help us to ensure compliance from vendors with performance Metrics identified in the contracts and to minimize the risk of potential issues arising after the start of the project. false false false false false false false true false BARBARA DWYER GUNN 352870 0 12000 0 13405 0 18733 0 0 0 397008 0 0 0 EDWIN HONG 181195 0 69000 0 379 0 12815 0 4735 0 268124 0 0 0 ANNE BUSH 153526 0 12000 0 1393 0 11200 0 4730 0 182849 0 0 0 ANDRE SUITE 153951 0 12000 0 486 0 8400 0 4730 0 179567 0 0 0 NON-FIXED PAYMENTS FORM 990 SCHEDULE J, PARTI, LINE 7 Seedco Financial Services paid bonuses to six individuals reported on Form 990 Part VII (and Schedule J, Part II, Column (B(ii))) for the year ending December 31, 2011. Chief operating officer, Edwin Hong, SECRETARY & TREASURER, BARBARA DWYER GUNN, CHIEF CREDIT OFFICER, ANNE BUSH, SENIOR VICE PRESIDENT, ANDRE SUITE, SENIOR VICE PRESIDENT OF NEW MARKETS TAX CREDITS, KENNETH BREZENOFF and VICE PRESIDENT, AISHA BENSON, were paid performance bonuses for meeting certain performance metrics during the 2010 calendar year. Those bonuses were actually paid in 2011. The bonuses were as follows Edwin Hong - $69,000, BARBARA DWYER GUNN - 12,000, ANNE BUSH - 12,000, ANDRE SUITE - 12,000, Kenneth Brezenoff- $5,500, AISHA BENSON - $5,500. These bonuses are being reported on Form 990, Part VII Column (F) (and Schedule J, Column (c)). The accrued bonuses were paid in calendar year 2012. All bonuses issued are approved by the full Board of Directors and documented in the appropriate board committee MINUTES. CORPORATE MEMBER PART VI, LINE 6 SEEDCO FINANCIAL SERVICES HAS ONE SOLE CORPORATE MEMBER, ITS PARENT ORGANIZATION, STRUCTURED EMPLOYMENT ECONOMIC DEVELOPMENT CORPORATION (SEEDCO). THE RELATIONSHIP BETWEEN THE TWO ORGANIZATIONS IS MEMORIALIZED IN SEEDCO FINANCIAL SERVICES BYLAWS. PARENT CORPORATION PART VI, LINE 7 SEEDCO FINANCIAL SERVICES' PARENT ORGANIZATION, SEEDCO, HAS CERTAIN RESERVED POWERS ENUMERATED IN SEEDCO FINANCIAL SERVICES' BYLAWS, SEEDCO HAD THE AUTHORITY TO APPOINT ALL NON EX-OFFICIAL VOTING MEMBERS OF THE BOARD OF DIRECTORS AND MAY APPROVE ALL CHANGES TO THE ORGANIZATION'S BYLAWS. ADDITIONALLY, BY AGREEMENT THE PARENT HAS GUARANTEED CERTAIN CREDIT OBLIGATIONS OF SEEDCO FINANCIAL SERVICES, AND RETAINS THE RIGHT TO APPROVE THE ORGANIZATION'S ANNUAL BUDGET. 990 REVIEW PART VI, LINE 11 A COPY OF THE FORM 990 WAS SHARED WITH ALL MEMBERS OF THE BOARD OF DIRECTORS IN DRAFT FORM VIA ELECTRONIC MAIL. ONCE THE AUDIT COMMITTEE OF THE BOARD APPROVED THE FORM 990, IT WAS ELECTRONICALLY FILED WITH THE INTERNAL REVENUE SERVICE. CONFLICT OF INTEREST POLICY PART VI, LINE 12C SEEDCO FINANCIAL SERVICES OPERATES UNDER THE CONFLICT OF INTEREST POLICY OF ITS PARENT ORGANIZATION, SEEDCO. THE GENERAL COUNSEL SERVES AS AN ADVISOR TO DIRECTORS REGARDING POTENTIAL CONFLICTS, BOTH DURING THE ANNUAL RECERTIFICATION PROCESS AND AS THEY ARISE. AS NECESSARY, THE GENERAL COUNSEL BRINGS MATTERS PERTAINING TO OFFICERS AND DIRECTORS TO THE PRESIDENT FOR DISCUSSION WITH THE BOARD AND ADVISES WHEN DIRECTORS MUST REMOVE THEMSELVES FROM VOTING ON ORGANIZATION MATTERS. SALARY STRUCTURE PART VI, LINE 15 For all employees of the organization except the president, SFs has a salary structure that consists of job grades with a minimum, Midpoint, and Maximum. This structure provides competitiveness with the external market through comparison with relevant Market information. An independent consultant used surveys published by Abbot, Langer and Associates and PRM Consulting Group to benchmark SFS's salaries, the average of nonprofit organizations of comparable size in the New York region is the market target for salary compensation. A pool for salary increases and bonuses for all staff is proposed in the organization's annual budget. This pool is subsequently reviewed and approved by the Board of Directors when it approves the organization's annual budget. The President reviewed and approved the salaries and bonuses of all staff of the organization as does the board Compensation for the President is determined by the Board of Directors based on its assessment of the company's overall performance and the President's performance against individual goals. FINANCIAL STATEMENTS PART VI, LINE 19 SEEDCO FINANCIAL SERVICE'S EXPANSIVE WEBSITE CONTAINS A SECTION RESERVED FOR FINANCIAL STATEMENTS UNDER THE "INVESTOR RELATIONS" WEBLINK. THE ORGANIZATIONS FINANCIAL STATEMENTS CAN BE FOUND HERE AND THERE IS A NOTATION INSTRUCTING THE PUBLIC THAT ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST BY CONTACTING SFSINFO@SEECO.ORG. THE ORGANIZATION'S FORM 990 IS AVAILABLE UPON REQUEST AT ITS HEADQUARTERS AND CAN BE OBTAINED ONLINE ON WWW.GUIDESTAR.ORG. Notes Receivable 990, part x, line 7 IN RELATION TO THE PROGRAM SERVICES THAT SEEDCO FINANCIAL SERVICES OFFERS, THE NOTES RECEIVABLE AT DECEMBER 31, 2011 IS $37,512,459 NET OF DEFERRED LOAN ORIGINATION FEES OF $52,595. THIS INCLUDES 69 LOANS TO NON-PROFIT ORGANIZATIONS AND 413 LOANS TO SMALL BUSINESSES. NOTES AND LOANS RECEIVABLE BY GEOGRAPHICAL AREA CONSISTED OF THE FOLLOWING: LOANS LOAN LOSS LOANS RECEIVABLE RESERVE RECEIVABLE, NET ------------ ---------- ---------------- ALABAMA $3,515,556 $506,950 $3,008,606 LOUISIANA 7,228,407 1,085,206 6,143,201 COLORADO 1,367,663 225,065 1,142,598 TENNESSEE 242,237 84,809 157,428 NATIONAL 1,305,809 178,460 1,127,349 NEW YORK 27,987,821 2,448,348 25,539,473 SEEDCO 892,797 446,398 446,399 ------------ ---------- ---------------- TOTAL $42,540,290 $4,975,236 $37,565,054 OTHER EXPENSES FORM 990 PART IX DESCRIPTION:PAYROLL EXPENSE TOTAL EXPENSES:5672 PROGRAM SERVICES:MANAGEMENT AND GENERAL:5672 FUNDRAISING: OTHER EXPENSES FORM 990 PART IX DESCRIPTION:BAD DEBT EXPENSE TOTAL EXPENSES:5354995 PROGRAM SERVICES:5354995 MANAGEMENT AND GENERAL:FUNDRAISING: OTHER EXPENSES FORM 990 PART IX DESCRIPTION:MISCELLANEOUS TOTAL EXPENSES:138016 PROGRAM SERVICES:97411 MANAGEMENT AND GENERAL:39910 FUNDRAISING:695 OTHER EXPENSES FORM 990 PART IX DESCRIPTION:GRANTS REFUNDED TOTAL EXPENSES:120060 PROGRAM SERVICES:120060 MANAGEMENT AND GENERAL:FUNDRAISING: STRUCTURED EMPLOYMENT ECONOMIC DEV CORP 915 BROADWAY 17TH FLOOR NEW YORK NY 10010 132875743 WORKFORCE DEV NY 501(C)(3) 7 false NON-PROFIT ASSISTANT CORPORATION 915 BROADWAY 17TH FLOOR NEW YORK NY 10010 133952047 WORKFORCE DEV NY 501(C)(3) 9 false EMPOERMENT REVINVESTMENT FUND LLC 915 BROADWAY NEW YORK NY 10010 043671771 FINANCING NY RELATED 1264012 757552 false false 0.99000 false false true true false false false false false false false true false false false true false false STRUCTURED EMPLOYMENT ECONOMIC DEVELOPMENT C 68090 COST STRUCTURED EMPLOYMENT ECONOMIC DEVELOPMENT D 892797 COST STRUCTURED EMPLOYMENT ECONOMIC DEVELOPMENT L 1614928 COST EMPOWERMENT REINVESTMENT FUND LLC P 524147 COST