Bay Area Employment Development Company

Nonprofit profile at a glance

EIN
953457545
IRS 990 coverage
2011–2024
Forms available
Form 990 2024
Location
Concord, CA, USA
Phone
9259261020
Rating
80
Verdict
STRONG
Rating confidence
Moderate

Official website

Reported finances

Revenue
$4,965,067
Expenses
$4,730,573
Assets
$4,015,435
Liabilities
$1,201,666

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

17 people listed

Executive titles in this filing

  • Richard Grant (CEO)
  • Walter Menzel (Vice President)
  • Michael Johnson (President)

Highest reported compensation

  • Richard Grant (CEO): $534,611 total reported compensation
  • Mark Schwan (Senior VP): $232,925 total reported compensation
  • Isiah Alcantar (SVP & Marketing Manager): $193,595 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Assist growing small businesses obtain low cost optimally structured financing for fixed asset expansions which helps them retain and create jobs and assist their communities with neighborhood commercial revitalization efforts.

What it reported doing in 2024

Bay Area Employment Development Company BDC is licensed by the U.S. Small Business Administration, a federal agency, as a certified development company, for the purpose of making 504 loans to eligible small businesses. BDC uses 504 financing to assist growing small businesses obtain low cost financing for fixed asset expansions which helps them retain and create jobs and assist their communities with commercial revitalization efforts. Since its inception, BDC has provided 2,554 small businesses with over $1.8 billion of 504 financing and over $5 billion of funding overall. This has helped those companies create and retain approximately 28,000 jobs. Over 1/3 of the businesses funded are in low and moderate income areas and over 1/3 of their clients are women and minority owned businesses.

Operating model

Revenue model
Earned-program. 99% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 99% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Expenses are high relative to revenue and total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 72
  • Transparency & Controls: 86
  • Accountability: 95
  • Sustainability: 37
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 78.5%; rating input score 79
  • Program expense ratio: 83.2%; rating input score 83
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 4 of 6 controls in place; rating input score 67
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 72nd percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 8 of 9 controls in place; rating input score 89
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 4.7%; rating input score 50; 50th percentile among comparable filings
  • Total-asset coverage ratio: 0.85; rating input score 31; 31st percentile among comparable filings
  • Liabilities to assets ratio: 0.3; rating input score 34; 34th percentile among comparable filings
  • Officer compensation ratio: 43.7%; rating input score 2; 2nd percentile among comparable filings

Growth

  • Program expense growth: 2% per year; rating input score 100; 22nd percentile among comparable filings
  • Revenue growth: 1.5% per year; rating input score 100; 18th percentile among comparable filings
  • Asset growth: 7.2% per year; rating input score 100; 46th percentile among comparable filings

Details

  • Where the money goes: 78.5% of revenue deployed · 83.2% of spending went to programs
  • Governance: 7 of 7 board members independent · 8 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $3.9M in reported program spending
  • Leadership: top reported pay $535K · 17 people listed · 4 of 6 pay-setting controls reported
  • Highest-paid contractors: 3 contractors listed · $603K reported
  • Consistency: 31 of 31 current checks pass
  • Schedules: 4 filed schedules · includes grants and executive pay
  • Filing history: 13 filing years from 2011 to 2024
  • Contacts: How to reach this organization
  • Money network: 17 filed money-flow records
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Review — Sustainability: Operating margin scored 50/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 31/100.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • High — Sustainability: Officer compensation ratio scored 2/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 34/100.