PartnershipsThrougha Difference

Making

New Jersey Community Loan FundAnnual Report 2002

Preston D. Pinkett III, Chair

Marie C. Mascherin, Vice Chair

Carol Kasabach, Secretary

Susan U. Bredehoft, TreasurerCommerce Bank

Dudley BenoitJP Morgan Chase

Randolph HanksFirst Union/Wachovia

Joyce W. HarleyLISC Multi-Cities

Patrick J. KellyFleet Bank

Steven LederCommunity Health Law Project

Carla L. LermanEpiscopal Community Development

Carl H. MalmstromVenture Investment Associates

Connie M. PascaleLegal Services of New Jersey

Daniel SantoPietroHispanic Directors Association of New Jersey

Donna ScaranoD. Scarano & Associates

Affiliation Listed for Identification Purposes Only

New Jersey Community Loan Fund16-18 W. Lafayette StreetTrenton, NJ 08608-2088609.989.7766 Fax 609.393.9401email: njclf@njclf.com

STAFFJacqueline BaranowskiPortfolio Coordinator

Amanda BlagmanDirector, Child Care Initiatives

Kristine N. CooperResource Development & Public Relations Manager

Rachel Davies-DokuChild Care Initiatives Associate

Dick Frank Consultant

Nan FrankelChild Care Initiatives Associate

Candace A. FaunceChief Financial Officer

Bob GrahamSenior Lender

Doris E. HarrisResource Development & IT Associate

Adaku IbekwePrinceton University Intern

Brian M. KeenanSenior Loan Officer

Juanita Y. MarshallAccounts Receivable & Administrative Associate

Pascale DuvertFirst Union/Wachovia/DCA Graduate HousingScholar

Akua SarkodeeFirst Union/Wachovia/DCA Graduate HousingScholar

David M. ScheckExecutive Director

Jane ShoemakerAccounts Payable & Administration Associate

Daniel SullivanFirst Union/Wachovia/DCA Housing Scholar

Layout and DesignANCA Studios

PhotographerRoss Stout, Taylor Photo

CREDITS

BOARD OF DIRECTORS

CHAIRMAN & EXECUTIVE DIRECTOR’S LETTERPreston D. Pinkett III, Chairman and David M. Scheck, Executive Director

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DEAR FRIENDS OF THE FUND,

The New Jersey Community Loan Fund formalized its commitment totransition from a revolving loan fund to a community developmentfinancial institution during the fiscal year ended September 2002.Because the needs of a community and its stakeholders evolve over time,the Fund set out to better understand the neighborhoods it is commit-ted to serving, as well as the products and services the residents,community based organizations, businesses and public sector require inorder to have a meaningful and demonstrable impact in creatinghealthy, vibrant and stable communities.

Over the past decade it has become increasingly clear to practitioners ofurban revitalization that a unilateral approach is not always the mosteffective route to success. More often, community development requiresstakeholder involvement, sustained investment by the private sector, andbroad-based partnerships – themes resonating throughout this year’sAnnual Report.

The Fund’s 2002 Annual Report will introduce you to several of itspartners through vignettes which convey the impact of the Fund’s lending, investment and technical assistance programs in a more effective manner than counting the number of jobs created or units produced, the ratio of dollars leveraged, or the amount of clients served.While outcome-based measurements are relevant and meaningful, theFund is an intermediary and the impact derived from the provision of its capital and consultation are often intangible or, at the very least,difficult to quantify:

How does one measure the impact of a loan to a small entrepreneurlacking access to mainstream credit? Does the measure differ if the venture succeeds or fails? If the venture fails but the lender and entre-preneur each learn from the endeavor, is the impact less valuable?

What is the appropriate manner to convey the momentum resonatingthroughout a downtown due to the redevelopment of an abandonedparcel of real estate underutilized for the past two decades?

Is there an appropriate methodology to quantify an organization’simpact if a student from a community-based early care center enters

kindergarten ready to learn? What if it takes 13 more years before theorganization realizes the student can balance a checkbook? How doesthe measure change if in 25 years the student finds a cure for AIDS?

The Fund is committed to developing meaningful ways to measure itsimpact. Please consider these questions as you review the AnnualReport and if you have any ideas, do not hesitate to call. The questionof how one measures impact is expected to become more significant notonly to the Fund, but also to others in the CDFI industry and to thebroader community development field.

NEW MARKETS TAX CREDITS

Concurrent with its decision to transition to a CDFI, the Board ofDirectors established policies allowing the Fund to offer a broader anddeeper array of financial and consulting products and services to moreeffectively meet the needs of New Jersey’s underserved individuals andhistorically disinvested communities. Foremost among these products isa New Markets Tax Credit Fund.

During the spring, the U.S. Department of Treasury’s CDFI Fundapproved the Fund, a newly created nonprofit affiliate, and a newly created for-profit affiliate as Community Development Entities. Priorto the end of the fiscal year, the Fund, along with 344 other applicants,submitted an application for an allocation of New Markets Tax Creditsfrom the CDFI Fund. On March 14, 2003, the CDFI Fund announcedthat the New Jersey Community Loan Fund was one of the 66Community Development Entities selected to receive a tax credit allocation - $15 million in the case of the Fund. The Fund was the onlyorganization selected with its headquarters in the State of New Jersey.

The Fund is extremely pleased to have been selected as an allocatee inthe inaugural round of the New Markets Tax Credit Program and itlooks forward to solidifying existing and building new partnerships withorganizations and individuals committed to community development.

Thank you to all of our partners who make the work of the Fund possible and meaningful.

LENDING

COMMERCIAL CRAB TRAPSThe Fund, in partnership with the CumberlandEmpowerment Zone Corporation and the Tri-CountiesCommunity Action Agency, approved an $85,000 loan to Jack D. O’Brien to expand his Commercial Crab Traps business.

O’Brien is a resident of Port Norris, New Jersey, a portionof the Federal Empowerment Zone in CumberlandCounty. He was a commercial fisherman until an accidentleft him physically unable to pursue his profession. Inorder to supplement his income and become more self-sufficient, he decided to design and produce commercialgrade crab traps to sell to local crabbers.

O’Brien is the only manufacturer of commercial crab traps in his immediate market area. On an annual basis,approximately 6,000 traps need to be replaced due to normal wear and tear and loss in storms. O’Brien has had strained working capital from the inception of hisbusiness which has prevented him from being able to purchase adequate raw materials and hire enough helpto produce traps in sufficient quantity to meet the demandsof the local market.

The loan from the Fund and its partners enabled O’Briento acquire a piece of property in Port Norris that includeda large run-down barn where he established his productioncompany. Operations were hampered by the need toimprove the building in order to make production more

New Jersey Community Loan Fund was founded on the principle of providing capital to those lacking access, with a particular focus on revitalizing under-served communities through creative and flexible financing. One of the fund’s most flexible programs is its Disability Enterprise Program.

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efficient and to provide storage for finished traps. Some of theproblems associated with the building were inadequate heatingand plumbing systems and needed repairs to the roof. A fenceenclosing the back portion of the property where finished traps are stored had fallen down and municipal officials requiredthat this be repaired or replaced in order to improve the proper-ty’s aesthetics. O’Brien also needed to replace and modernizethe equipment he uses to manufacture the traps.

The loan, financed through the Fund’s Disability EnterpriseProgram, allowed O’Brien to address the needed repairs andimprovements to his building, allowing him to triple his yearlyproduction. Previously, O’Brien was only able to produce 1,000traps a year. He now has the capacity to produce 3,000 traps.The production of 3,000 traps enables him to capture one-halfof the current local market which will generate enough cashflow to purchase increased quantities of raw material and hiremore help, which in turn will enable him to produce more trapsevery year.

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“In partnership with the Fund I feel confident I will be able to meet the growing needs ofthe local market. Eventually, I would like to produce enough crab traps to meet the total demand in my market area.”

REGAN DEVELOPMENTPlainfield, New Jersey, nicknamed the Queen City, was once one of the wealthiest and most vibrant communities in the state.However, due in part to an aging infrastructure and the civilunrest of the late 1960’s, the middle class fled the city for thesurrounding suburbs leaving a large economic divide betweenthe wealthy, who still reside in the city’s Sleepy Hollow Section,and the poor.

Plainfield has not benefited from the economic boom of the lastdecade to the extent of other urban areas such as Newark, JerseyCity, and Hoboken. There has been little in the way of capitalimprovements in the city until recently. However, unlike manyother distressed communities, the town’s commercial district is

vibrant with few vacant storefronts. The businesses in the cityvary in the types of services and goods provided, but the vastmajority are non-credit rated “mom and pop” shops, chain discount stores, and franchises.

The redevelopment of the corner of Somerset Street and WestFront Street into a mixed-use facility in the heart of downtownPlainfield, will further enhance the community. It will mirrorthe restoration of the city’s train station and the South AvenueStreetscape and Business Improvement project. BogartCommerce Urban Renewal LLC, a Regan DevelopmentCorporation company, had been unsuccessful in obtaining debtfinancing from traditional lending institutions because of themix of commercial tenants expected to lease the units. TheFund, understanding the impact of redevelopment, was eager to partner with private and public organizations to finance the project.

A commercial loan of $1,610,000 from the Fund andCommunity Reinvestment Fund, a purchaser of communitydevelopment loans, will assist in the redevelopment of the former Tepper’s Department Store in Plainfield into a majorcommunity resource with 75 apartment units for low and moderateincome families, 8 commercial storefronts, and communityspace. While structurally and environmentally sound, themajority of the property had been underutilized for the last 20years. The redevelopment will return the now vacant and dilap-idated Tepper’s Department Store and the adjacent four-acres ofland to the city’s tax roles, provide quality affordable housing,infuse the downtown neighborhood with new vitality, and act asa catalyst for future community economic development.

Regan anticipates leasing the commercial units to a mix of business types similar to that of the rest of the city, small non-credit rated business, as well as franchise chains. Regan hasdemonstrated its success in similar developments in Newark,Paterson, New York and Connecticut. Regan has secured several commercial tenants including Plainfield Head Start, alaundromat, a retailer and a restaurant. An open space plaza willbe developed to service the community condominium unit and

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127 parking spaces will be furnished for use by housing, communi-ty, and commercial tenants, as well as visitors. “This project wouldnot have been possible without financing from the Fund and itspartners,” said Ken Regan.

The Fund, realizing that there are similar initiatives which requirelarger amounts of specialized capital to underwrite, is in the processof creating new funds to address these innovative projects. TheFund has demonstrated its success as an effective retailer of capital

by originating high quality, performing loans having a demonstrableimpact on historically disinvested communities. Therefore, the ini-tial reactions to the Fund’s new initiatives are being well received bypotential investors.

As the needs of the community development sector require moresophisticated financing products and services, the Fund,in partnership, will systematically broaden its product lines andexpand its capacity to serve low and moderate income communities.

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NEWARK LIGHTHOUSE INITIATIVEFiscal year 2002 was a motivating time as visions and actionplans became realities, and the participating centers began tosee their visions unfold. Teachers at Ironbound Children’sCenter began to reach levels of certification mandated bythe State. At Friendly Fuld Neighborhood Child Care, anexisting building began to take on a new form with addi-tions and renovations that would now provide the space fora parent/teacher resource room. Construction of a buildingat Vailsburg Child Development Center was initiated thatwill open the doors to a quality education for an additional90 preschoolers in state-of-the-art classrooms. Less highprofile, but equally important improvements included theaddition of a copy machine or the purchase of classroomlearning materials.

The implementation year was filled with hard work and enormous potential. It became evident that these opportunities would afford centers the ability to producesustainable quality programs. Taking advantage of theopportunities provided by the New Jersey Supreme CourtAbbott v. Burke decision, state funding of preschool programs,and the commitment to quality by a consortium of founda-tions and corporations, the Lighthouse Initiative startedsketching a blueprint for high quality early childhood programs–both within New Jersey and in other states,designed to ensure children’s success.

Partnerships also played a key role during this period.Alliances were formed with the Newark Board of Education

CONSULTINGImplementation efforts for the Newark Lighthouse Initiative have been exciting and eventful. The first year was filled with action plans, press events,meetings with state representatives and outreach to community stakeholders, project evaluation and partnership building.

6

7

“The Fund shows a real knowledge and commitment to partner on viable projects.”

-Frank AltmanCommunity Reinvestment Fund

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based in part on parity issues, budgeting, curriculum and a highquality education for the children of Newark. Dr. Ellen Frede,State of New Jersey Department of Education AssistantCommissioner for Early Education, spoke at a Lighthouse pressevent in September 2002 where she stated “We applaud theInitiative for bringing together foundations, corporations andeducators to help at-risk children succeed in school.” Due to itsinitial success, the New Jersey Community Loan Fund and itsproject collaborator, the Association for Children of New Jersey,had an opportunity to meet with Department of Human

Services Commissioner Gwendolyn Harris and other state officials to begin a dialogue on the strengthening of existing private and public funding.

The Lighthouse Initiative continued to build partnerships viacommunity outreach. In collaboration with the Early ChildhoodCoalition of Newark and PSE&G, the Initiative hosted a com-munity seminar for all of Newark’s early care providers entitled“It Takes More Than a Coat of Paint…Putting a New Face onEarly Childhood Education.”

As the Fund and its partners move forward into year two ofimplementation, they know that year one produced results withmeasurable outcomes as determined by the assessments of theparticipating centers conducted by the National Institute forEarly Education Research (NIEER). Plans are already under-way to utilize the “lessons learned” in the first year of theLighthouse Initiative to further improve the quality of early care among participating centers and throughout the state’sAbbott districts.

Last year the Fund’s staff rendered 6,720hours of technical assistance to nonprofit andfor-profit organizations engaged in commu-nity economic development activities.

ACCREDITATION -process through which early childhood professionals and families can evaluate programs, compare them with professional standards, strengthen the program and commit to ongoing evaluation and improvement

CURRICULUM SELECTION -ensure enactment of developmentally appropriate learning activities

PROFESSIONAL DEVELOPMENT PLANS -ensure all staff are grounded in the knowledge base of preschool education and achieve mandated staff credentialing

CHILD ASSESSMENT - add to the understanding of child growth and development.

These are significant components to the achievement of qualityimprovement. The Fund remains eager to tackle the challengesand take advantage of this unique partnership opportunity tomake a difference in the lives of New Jersey’s children.

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NEWARK LIGHTHOUSE INITIATIVE — ONGOING IMPLEMENTATION PHASE:

During fiscal year 2002, the Fund added to its portfoliofour new capital investors. Twenty-four organizations andindividuals renewed their commitments to the Fund andthree organizations not only renewed their partnership withthe Fund but increased their level of support. The Fundseeks to diversify its capital under management throughbusiness development activities including a broader array ofinvestment opportunities to meet the needs of both theFund’s investors and clients.

WORKING CAPITAL - OPERATING SUPPORTAs the Fund’s lending and technical assistance and consulting programs expanded during 2002, so did theneed to attract diverse partnerships with private and publicentities. The Fund partnered with financial institutions,foundations, corporations, faith-based organizations andindividuals in support of its programs and services, includ-ing broadening the scope and depth of its affordable housing, early care and education, and economic develop-ment initiatives. In conjunction with attracting new capitalfrom diverse sources, the Fund’s intermediate term goal isto use its earned income to become self sufficient, utilizingworking capital grants to develop innovative programs toserve the community.

CAPITAL UNDER MANAGEMENT

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ASSETS UNDER MANAGEMENT

* BASED ON FISCAL YEAR END

The Fund relies on innovative partnerships with forward thinking organizations and individuals to further its mission of providing historically disadvantaged communities, organizations, and people access to affordable capital. The Fund was successful in its efforts to attract capital from bothnew and existing socially conscious investors in the form of traditional investments, lines of credit and equity equivalent (“ EQ2” ) capital.

The Fund held its Special Event at the State Theatre of NewBrunswick in February 2002. The event, sponsored by FleetBank, gathered supporters at Rutgers University’s Mason Gross

School of the Arts for a cocktail reception and art exhibit bystudents. The evening was an opportunity to further publicizethe work of the organization, as well as to attract new supporters.

INVESTORS

$1,000,000-$4,000,000First Fidelity Urban Investment

CorporationFleet Development Ventures L.L.C. JP Morgan ChaseNew Jersey Housing & Mortgage Finance

Agency TD Waterhouse Bank

$100,000-$999,999Amboy National BankCalvert Social Investment FoundationCommerce Bank Community Development Financial

Institution FundDomestic & Foreign Missionary Society of

the Protestant Episcopal Church in the USAEisenhart Fund F. B. Heron FoundationFirst Union/Wachovia Fleet Bank Hudson City Savings BankMerrill Lynch CDCNew York Community BankRahway Savings InstitutionU.S. Trust Company of New YorkValley National Bank

$50,000-$99,999Mary Owen Borden FoundationCatholic Health SystemsCommerce Bank North Commerce Bank/ShoreFirst Savings Bank/SLAGreater Community BankLakeland BankPNC BankUnited Trust Bank

$25,000-$49,999Cenlar Federal Savings BankClifton Savings BankSt. George's by the River Episcopal Church,

RumsonSinsinawa Dominicans, Inc.Sisters of Charity of St. ElizabethSSM Int’l Finance, Inc. (Srs. of the

Sorrowful Mother)Spencer Savings BankSterling BankSun National Bank Synod of Mid-Atlantics (RCA)

$10,000-$24,999Atlantic Stewardship BankBergen Commercial BankChurch of St. John on the Mountain,

BernardsvilleCommunity Bank of Bergen CountyEpiscopal Diocese of New JerseyEpiscopal Diocese of NewarkFirst Washington State BankEd GracelySusan E. Hylen & Ted A. Smith Jr.Katherine E. MerckNorCrown BankPrinceton Friends Meeting St. Paul's Episcopal Church, MontvaleSomerset Savings BankUnited Roosevelt Savings Bank Woodstown National Savings Bank &

Trust CompanyYardville National Bank

$1,000-$9,999Equity BankFirst Baptist Church Fellowship FundFirst Presbyterian Church, Haddon HeightsFirst State BankSusanne C. Hand

Jefferson Bank of New JerseyHaig F. & Carol KasabachAmy Lempert & Todd BressiPaul & Carla Lerman Anne S. Li & Edward Muldoon M’Kor Shalom CongregationAlan MallachPatricia B. MasiDoris RadosSusan RepkoSt. Andrew’s Episcopal Church,

New ProvidenceDavid M. ScheckSovereign BankIrwin & Phyllis StoolmacherCarl V. VanOsdallMarshall Wolf

(AS OF FYE 9/30/02)

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DISTINGUISHED SERVICEEach year the Fund honors those individuals who have dedicatedtheir time, efforts and talents to help further the organization’smission. During the 2002 Annual Gathering, generously under-written by First Union/Wachovia, Jennifer Chandler Hauge,Stephen G. Janick III and Barbara Reisman received the Fund’sDistinguished Service Award.

Jennifer Chandler Hauge is Deputy Director of the ProBonoPartnership in Newark. Ms. Hauge is a staunch supporter of theFund, working on a multitude of projects since 1998. ProBonoPartnership provides meaningful pro bono opportunities andsupport to corporate and private attorneys practicing in the areasof corporate, tax, real estate, employment, intellectual property,

GRANTORS

$100,000-$250,000Geraldine R. Dodge FoundationPrudential FoundationSchumann Fund of New JerseyU.S. Department of Health and Human

Services Administration of Children, Youth and Families

$50,000-$99,999F.B. Heron FoundationFleet BankThe Grable FoundationLucent TechnologiesSagner Family Fund

$20,000-$49,999Mary Owen Borden FoundationJP Morgan ChasePNC BankVictoria Foundation

$10,000-$19,999James E.& Diane Burke Foundation, Inc.First Union/WachoviaHealthcare Foundation of New JerseySovereign BankValley National Bank

$5,000-$9,999Clifton Savings BankFund for New JerseyMerrill Lynch Bank, USAYardville National Bank

$1,000-$4,999Amboy National BankAnonymous(1)Atlantic Stewardship BankBoiling Springs BankJoseph & Susan U. BredehoftCIT Group FoundationCitigroup Commerce BankCVM Management & Holding CompanyFirst Savings BankFund for New JerseyGreater Community BankHanvit America BankDirk & Nancy HartogHudson City Savings BankJP Morgan ChaseKorona, Beides & EatonAnne S. Li & Edward MuldoonMarie C. Mascherin & Ernie C. CerinoNew Jersey Redevelopment Authority

Public Service Electric & GasRahway Savings InstitutionRoselle Savings BankSomerset Savings BankSpencer Savings BankThe Unitarian Church in SummitU.S. Trust Company of New York

Up to $1,000Alternatives, Inc.ANCA StudiosGerman & Deborah Aquiar-VelezBruce & Patricia BeckerJohn & Roseanna Bretherick, Jr.Elizabeth A. BurlingameChild Care ConnectionConectivDime Savings BankFederal Home Loan Bank of New YorkFrye, Williams & Co., PAGMAC Commercial MortgageArnold & Ellen D. GwirtzmanHousing & Community Development

Network of New JerseyIsles, Inc.George B. & Margaret Z. JacksonHaig & Carol Kasabach

Keep It Clean Janitorial Services & Supply Company

Lakeland BankPaul & Carla LermanLocal Initiative Support CorporationCarl H. & Catherine B. MalmstromMarriott (Lafayette Yard)Patricia B. MasiDavid McAlpin John MurrayNew Jersey Community Development

CorporationNew Jersey Economic Development

AuthorityNew Jersey Natural Gas FoundationNew Jersey Utilities Association, Inc.Newark Emergency Services for Families, Inc.Newark Pre-School Council, Inc.Roma Federal Savings BankAlma & Richard SalterSomerset Community ActionThe Employment ChannelUnified Vailsburg Services OrganizationUnited Trust BankUnity BankDr. Terrance & Faye Zealand

(AS OF FYE 9/30/02)

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and nonprofit law to community-based nonprofit organizationsthat serve the poor and disadvantaged populations. Services areprimarily in the areas of health and human services, affordablehousing, and neighborhood revitalization.

Stephen G. Janick III joined the Board of Directors in 1997. Asa member, he brought invaluable expertise in administering theFund’s Disability Enterprise Program. He was also a memberof the Fund’s Finance and Audit Committee. His dedication to the disabled community is exemplary. Mr. Janick serves as a board member for a multitude of committees, commissionsand associations for individuals with disabilities including,New Jersey Protection and Advocacy, Inc., New Jersey StateRehabilitation Council Commission for the Blind & VisuallyImpaired, United Associations for Handicapped Citizens andthe Governor's Task Force on Services for Disabled Persons.Mr. Janick’s term as a board member ended in May 2002, buthe has committed to continue to provide advice and counsel tothe organization.

Barbara Reisman serves as Executive Director of the SchumannFund for New Jersey, a grantmaking foundation, located inMontclair. The Schumann Fund for New Jersey’s program priorities are focused on environmental protection, public policyand early childhood development. Through her leadership atSchumann, Ms. Reisman’s dedication to early care and education is evidenced by the Foundation’s support of theFund’s Building Stronger Centers and Newark LighthouseInitiative programs. Among her varied commitments, sheserves on a number of boards, including Grantmakers forChildren, Youth & Families, Council of New JerseyGrantmakers and Brown University.

PUBLIC RELATIONSTo ensure the Fund is portrayed in a positive light, the Fundparticipates in a variety of community relations activities.Many staff members share their expertise as board members and advisors of other for-profit and nonprofit organizationsincluding Supportive Housing Association, The CommunityDevelopment Institute, LISC Multi-Cities, National Children’sFacilities Network, Metuchen Shade Tree Commission.

In addition to sharing its expertise with other agencies, theFund has also partnered with the March of Dimes for its annual“Walk America” event. Last year all Fund staff members partici-pated, raising over $850 in support of improving the health andwell-being of babies and mothers.

The Fund also shares its knowledge of community developmentindustry with the media. In partnership with print and broad-cast media, the Fund has been featured as an industry leaderfinancing early care and education facilities and its knowledge of affordable housing and economic development both locallyand nationally.

Throughout fiscal year 2003 and beyond, the Fund has engagedstaff members in partnership with marketing communicationsprofessionals to expand its public relations practices. Theseefforts will include the strategic branding and marketing of the organization as well as website development to further itsmission. Outreach and partnership with various audiences torevitalize communities throughout New Jersey is vital to thegrowth of the organization’s programs and services.

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In 2002 the Fund exceeded its loan goal of$8 million by close to $3.5 million. Thesecommitments spurred $60 million of totaldevelopment.

(Balance Sheets)

ASSETSCash and InvestmentsCash and Investments, ReservedCash and Investments, Total

Interest Receivable

Loans Receivable, GrossAllowance for Loan LossesLoans Receivable, Net

Property and Equipment, NetOther Assets

Total Assets

LIABILITIES AND NET ASSETSAccounts Payable and Accrued Expenses Accrued Interest Payable

Notes PayableDue under Participation AgreementFunds Held in Trust, Managed Assets

Other Liabilities

Subordinate Notes Payable

Total Liabilities

Net Assets, UnrestrictedNet Assets, Temporarily Restricted

Total Net Assets

TOTAL LIABILITIES AND NET ASSETS

Sep 30, 2002

COMMUNITYLOAN FUND

$ 1,566,127 4,970,258 6,536,385

57,937

10,983,605 (1,091,786)9,891,819

304,479 5,747

$ 16,769,367

63,128 99,490

9,533,975 809,961

0

27,244

1,500,000

12,033,798

4,762,569 0

4,762,569

$ 16,796,367

Sep 30, 2002

FUNDMANAGED

ASSETS

$ 1,359,059 318,542

1,677,601

3,858

509,858 (8,214)

501,644

0 0

$ 2,183,103

20,160 0

225,000 0

476,545

0

0

721,705

0 1,461,398

1,461,398

$ 2,183,103

Sep 30, 2002

COMMUNITYCONSULTING

GROUP

$ 0 965,460 965,460

0

0 0 0

0 793

$ 966,253

65,370 0

0 0 0

0

0

65,370

0 900,883

900,883

$ 966,253

Sep 30, 2002

TOTAL

$ 2,925,186 6,254,260 9,179,446

61,795

11,493,463 (1,100,000)10,393,463

304,479 6,540

$ 19,945,723

148,658 99,490

9,758,975 809,961 476,545

27,244

1,500,000

12,820,873

4,762,569 2,362,281

7,124,850

$ 19,945,723

Sep 30, 2001

TOTAL

$ 3,013,263 5,186,497 8,199,760

136,374

11,869,298 (1,031,182)10,838,116

301,649 947

$ 19,476,846

76,203 101,701

10,107,272 903,441 550,000

16,295

0

11,754,912

5,449,911 2,272,023

7,721,934

$ 19,476,846

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STATEMENTS OF FINANCIAL POSITION

(Income Statements)

NET INTEREST INCOMEInterest IncomeInvestment IncomeInterest Expense

Net Interest Income

REVENUES, GAINS AND OTHER SUPPORTContributions and GrantsProgram Services and Fee IncomeOther Income

Total Revenues, Gains and Other Support

OPERATING EXPENSESOperating Expenses

Total Operating Expenses

NON OPERATING INCOME AND EXPENSERealized Securities Gains (Losses)Unrealized Securities Gains (Losses)DepreciationProvisions for Loan Losses

Total Non Operating Income and Expense

CHANGE IN NET ASSETSNet Assets, Beginning of YearNet Assets, End of Year

The statements of financial position of The Community Loan Fund of New Jersey, Inc. as of September 30, 2002 and 2001 and the related statements of activities and cash flows for the years then ended have been audited by Lambrides, Lamos,

Moulthrop & Co. and an unqualified opinion has been rendered. The financial statements presented have been derived from the audited financial statements. Copies of the audit reports and the complete financial statements are available upon

request to New Jersey Community Loan Fund, 16-18 West Lafayette Street, Trenton, NJ 08608 or telephone 609.989.7766.

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Sep 30, 2002

COMMUNITYLOAN FUND

$ 773,594 274,763

(356,508)

691,849

394,087 113,915

90,493

598,495

867,891

867,891

(258,232)(575,961)(22,967)

(252,635)

(1,109,795)

(687,342)5,449,911

$ 4,762,569

Sep 30, 2002

FUNDMANAGED

ASSETS

$ 4,338 25,092

0

29,430

40,000 50

3,242

43,292

30,540

30,540

(4,434)2,252

0 0

(2,182)

40,000 1,421,398

$ 1,461,398

Sep 30, 2002

COMMUNITYCONSULTING

GROUP

$ 0 339

0

339

779,593 17,150

0

796,743

746,824

746,824

0 0 0 0

0

50,258 850,625

$ 900,883

Sep 30, 2002

TOTAL

$ 777,932 300,194

(356,508)

721,618

1,213,680 131,115

93,735

1,438,530

1,645,255

1,645,255

(262,666)(573,709)(22,967)

(252,635)

(1,111,977)

(597,084)7,721,934

$ 7,124,850

Sep 30, 2001

TOTAL

$ 864,198 279,511

(377,836)

765,873

4,285,886 82,227 60,127

4,428,240

1,269,166

1,269,166

(1,726)128,305 (14,063)

(200,000)

(87,484)

3,837,463 3,884,471

$ 7,721,934

STATEMENTS OF ACTIVITIES

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Organization Name City AmountLOAN COMMITMENTS

Advance Housing Inc.Alternatives, Inc.Bergen Family CenterBogart Commerce Urban Renewal, LLCBridgeway HouseBrighter Tomorrows Children's Academy & Enrichment CenterCathedral Community Development Corp.Community Enterprise CorporationCommunity Hope, Inc.Community Lending Partners of New Jersey, Inc.Community Urban Renewal Enterprise, Inc.Dekbon Housing Development Corp.Fairmount Housing CorporationFairview Village Urban Renewal AssociatesFirst Steps Day Care CenterGlory Tabernacle Family Life Center, Inc.Homes of Montclair Ecumenical CorpHousing and Neighborhood Development Services (HANDS), Inc.Integrity, Inc.Invention Factory Science CenterIsles, Inc.It Takes A VillageJane Addams Day Care Center, IncLatin American Economic Development Association, Inc.Macedonia Ministries CDCMain Street Counseling CenterNew Jersey Citizen Action CorporationNewBridge Services, Inc.Ocean Housing AlliancePopular Food MarketSt. Paul's Community Development CorporationSecond Steps, Inc.Summit Child Care CentersThe Community Builders, Inc.Unified Vailsburg Services OrganizationUnion Township Community Action Organization, Inc.United Cerebral Palsy of Morris/Somerset, Inc.Victoria L. VafiadesZelphy's Creative Learning Center

(AS OF FYE 9/30/02)

FairviewBridgewaterEnglewoodPlainfieldWest AmwellNewarkPerth AmboyFreeholdMorristownTrentonNewarkPleasantvilleJersey CityCamdenJersey CityBridgetonMontclairOrangeNewarkTrentonTrentonJersey CityToms RiverCamdenNewarkWest OrangeHackensackLittle FallsPoint Pleasant BeachVinelandPatersonLong BranchSummitNew BrunswickNewarkVauxhallTewksburyMillvilleMillville

$395,000$230,000$25,000$1,200,000$75,000$25,000$1,030,000$50,000$500.000$270,000$200,000$350,000$50,000$400,000$535,000$91,550$49,000$$250,000$830,000$150,000$200,000$225,000$560,000$770,000$50,000$85,000$50,000$693,700$93,450$25,000$342,500$59,000$850,000$190,000$50,000$142,000$84,000$30,000$382,000

New Jersey Community Loan Fund does not have the human,intellectual, or financial capacity to achieve meaningful and systemicimpact on its own. However, by formulating strategic partnershipswith civic, community-based, governmental, and private sector partners, it is in the unique position to effectively identify challenges,devise ideas, assist in the preparation of plans, and capitalize onopportunities. The provision of services, in partnership, allows thecompany to be a proactive participant in the revitalization, growth,and sustainability of the communities it serves.

The Fund would like to extend a very special thank you to its partners who help it achieve its goals and objectives and further its mission.

Janis Ginsburg, Program Manager; New Jersey Department of Community Affairs. Ms. Ginsburg has been instrumental

placing students with the Fund under the First Union/Wachovia/DCA Housing Scholars Program.

Daniel Sullivan, New Jersey Housing Scholar, completed a ten-week summer internship with the Fund. During his internship,Daniel helped coordinate a Quality Improvement Survey andresearched the New Markets Tax Credit Initiative. Daniel, who iscurrently completing his senior year at Rutgers University, said hecame out of the internship with a “better understanding of howcommunity development works.”

Adaku Ibekwe, a junior psychology major at Princeton University,began an internship with the Fund under the auspices of theUniversity’s Pace Center for Community Service. Ms. Ibekweworks with the Resource Development and Public Relationsdepartment several hours a week researching additional fundingsources and working on special projects.

The following attorneys and law firms provided pro bono legal assistance:Ken Norcross and Diane Flynn – Drinker, Biddle & Reath; Florham Park, NJPaul St. Onge, Michael J. Lubben, Peter Ulrich and Mark Kossow – Gibbons, Del Deo, Dolan, Griffinger & Vecchione; Newark, NJNatalie Silver – Kirkland & Ellis; New York, NYJeffrey M. Beides – Korona, Beides & Eaton; Jersey City, NJJohn Bradley and Florina Moldovan – McElroy, Deutsch & Mulvaney; Morristown, NJMichael Turner, Daniel Kalosieh, and Michael Zelenty – Pitney, Hardin, Kipp & Szuch; Morristown, NJJennifer Chandler Hauge – ProBono Partnership; Newark, NJ

The Fund’s financial statements are audited by: Bill Arnold & Paul Becker – Lambrides, Lamos, Moulthrop & Co.; Montclair, NJ

The following organizations work in partnership with the Fund implementing its successful early care and education initiatives:Nancy Thomson, Beth Gardiner and Cecila Aerstin Child Care Connection (Building Stronger Centers and Children's Futures)

Ceil Zalkind and Cynthia Rice Association for Children of New Jersey (Newark Lighthouse Initiative)

Lighthouse Executive Committee Members

The Fund would also like to thank Carol Battaglia and the staff of ANCAStudios. ANCA Studios was pivotal in help-ing the Fund create its 2001 Annual Reportwhich subsequently won The CommunicatorAwards 2003 Award of Distinction in the category of Annual Report/Non-Profit.

SPECIAL THANKS

Copyright © 2003 by Community Loan Fund of New Jersey, Inc.

New Jersey Community Loan Fund16-18 W. Lafayette StreetTrenton, New Jersey 08608-2088

NON-PROFIT ORG.U.S. POSTAGE

PAIDTRENTON, NJ

PERMIT NO. 624