Jon Aram, CEO of Next Street, presented on small- and mid-sized (SME) manufacturers. A panel discussion followed and featured representatives from three industry leaders in manufacturing and innovation: Jon Aram, CEO, Next Street; Michael Ulbrich, President of NY Operations, EWI; Kevin Boes, President and CEO, LISC's New Markets Support Company

1. COLUMBUS 2020
INVESTOR UPDATE
SME PRESENTATION & PANEL DISCUSSION
#cbus2020

2. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 2
Represented today by:
JonAram, CEO, Next Street
jaram@nextstreet.com
• Boutique advisory firm that provides advice and capital
solutions to grow businesses, create jobs, and revitalize
communities
• Founded in 2005; 40 professionals; national client base
with offices in Boston, NYC, and Chicago
• 6,500+ businesses served annually through on-the-
ground programs, business development centers, and
200+ one on one advisory clients
• Category leading clients across businesses,
government, large institutions, and investors
• Substantial experience in community development
finance and investment strategies
• Most professionals have traditional finance or advisory
backgrounds

3. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 3
WHY SMALL- AND
MID-SIZED (SME) MANUFACTURERS MATTER
JON ARAM, CEO, NEXT STREET
OCTOBER 6, 2016

4. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 4
THE STRATEGIC IMPORTANCE OF MANUFACTURING
The manufacturing sector is critical to the ongoing health of the U.S. economy
1
ITIF. The Case for a National Manufacturing Strategy. April 2011.
2
The Manufacturing Institute. The Facts about Modern Manufacturing, 8th Edition. 2009.
3
The Milken Institute. Manufacturing 2.0: A More Prosperous California.June 2009.
Principal Source of
R&D and Innovation
Activity in the U.S.1
> Manufacturing firms perform ~70% of industry R&D in the U.S., even though
manufacturing comprises only 11% of the economy
Manufacturing is a
Backbone Industry
that Spurs Growth
Across the
Economy1,2,3
> Manufacturing,on average, generates $1.40 of economic activity for each $1.00 in final
sale of manufactured products, and each manufacturing job leads to the creation of 2-5
additional jobs elsewhere in the economy
Driver of Quality Job
Growth and Ladders
of Opportunity1
> While manufacturing workers are becoming more skilled and more educated, the
industry remains a critical source of well-paying jobs for the many U.S. workers that
lack access to higher education

5. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 5
KEY TRENDS AND CHALLENGES FACING THE SECTOR
U.S. manufacturing has the opportunity for a late renaissance if business and civic leaders can
capitalize on emerging technological advancements and renewed attention
1
ITIF. International Benchmarking of Countries’ Policies and Programs Supporting SME Manufacturers. September 2011.
2
Forbes. “TechShop gives the Maker Movement a big boost.” June 2015. Jesse Harrington Au, Autodesk.
3
Confidential Next Street interviews.
Japan invests 30x, Germany invests over
20x, and Canada invests almost 10x
more than what the U.S. is spending in
principal SME support programs1
"Making change is risky. Not making
change probably doesn't lead to long-
term survival”3
“Tasks that 5 or 10 years ago required
advanced training and many months to
complete can now be accomplished in a
few hours.”2
1
Advanced manufacturing economies lose ground:Since 2000,U.S.
manufacturing has struggled relative to many other comparable advanced
economies that have benefitted from higher levels of government investment
3
Transformative shifts in technology:Technology advances have cross-industry
impacts and will redefine U.S.and global manufacturing in the next 5-10 years
4
Increasingly important role of SMEs:Large manufacturers rely on a large
network of SME suppliers, but SMEs are the most likely to be left out of innovation
and R&D efforts due to lower risk tolerance and more limited access to capital
2
Uneven growth within the manufacturing sector: While relatively tech-
intensive industries have grown,many less tech-intensive industries have compressed

6. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 6
SME MANUFACTURERS: INNOVATION AND R&D (1 OF 2)
SME manufacturers play a critical role in the manufacturing ecosystem…
1
Executive Office Of The President and The U.S. Department Of Commerce. Supply Chain Innovation: Strengthening America’s Small Manufacturers. March 2015.
2012
46%
54%
2011
42%
58%
2010
44%
56%
Share of New Jobs Created in Manufacturing, 2010 – 2012 (Latest Available)1
> The U.S.’s 230,000 SME manufacturers employ 42%
of all manufacturing workers,and have driven the
growth in employment post-recession
> Original equipment manufacturers (OEMs) rely on
a large network of SME manufacturers to supply
components and parts of finished products,with
close to 60% of the final purchase price coming
from value added by suppliers
Large Firms (500+ Employees)SME Firms (< 500 Employees)

7. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 7
SME MANUFACTURERS: INNOVATION AND R&D (2 OF 2)
…however, innovation is not distributed evenly throughout the manufacturing sector; R&D spend
is concentrated among a small share of large manufacturers
1
Executive Office Of The President and The U.S. Department Of Commerce. Supply Chain Innovation: Strengthening America’s Small Manufacturers. March 2015.
Share of Manufacturing Firms vs. Share of Manufacturing R&D1
98%
33%
67%
2%
Share of Total
Manufacturing R&D Spend
Share of
Manufacturing Firms
Large Firms (500+ Employees)SME Firms (< 500 Employees)
> 67% of all manufacturing R&D is performed by
2% of large manufacturing companies,with 39%
of that R&D attributable to the 20 largest
manufacturers alone
> SME ability to invest in new technology is
constrained by:
– Lower margins
– Limited access to capital
– Operational limitations (e.g.,internal staff
capabilities,machinery and information technology
/ operation technologyinfrastructure,and time)

8. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 8
SME MANUFACTURERS: THE HEART OF THE CHALLENGE
Structural market failures make the provision of support services to SME manufacturers
more challenging
1
ITIF. International Benchmarking of Countries’ Policies and Programs Supporting SME Manufacturers. September 2011.
“Optimizing for
Today”
> With pressure to compete on costs, many SMEs are reluctant to invest in innovation,which is both
expensive and not guaranteed to produce a return on investment
> SME firms are risk averse and not typically the first to adopt new innovations
“Limited Everything”
> Limited funding forfinancing innovation:Difficult to find loans or grants for funding innovation
externally
> Limited resources: Funding aside, SMEs have limited internalresource capacity to commit to R&D
work
“Decision-Making
Paralysis”
> As infrequent purchasers of consulting services, SMEs often do not have “the experience or knowledge
necessary to adequately assess the value of those services or the quality of particularservice
providers”1
> Navigating the array of public vs. private and hyperlocal vs. nationalservice and funding providers is
complex and time-consuming; larger firms may have entire departments dedicated to this task

9. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 9
SUCCESSFUL SOLUTIONS FOR INNOVATION
Successful solutions for SME innovation share three critical components: (1) technology support &
acceleration; (2) next generation services; and (3) access to capital
Debt
Equity
Grant
Product Innovation
Technology /
KnowledgeTransfer
Engineering /
Technical Support
Process Innovation
WorkforceTraining
Business Development /
Networking
Lean Manufacturing
Government
Standards / Benefits
Access to
Capital
Next Generation
Services
Technology Support &
Acceleration

10. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 10
INNOV. LOAN FUND: THE IMPACT ON SME MANUFACTURERS (1 OF 2)
1
Trade Up Fund. State of SME Finance in the United States in 2015. January 2015.
2
NIST MEP. Small Manufacturers CapitalAccess Inventory and Needs Assessment. November 2011.
> Deteriorating credit conditions in the wake of the financial crisis1
> Strong needs for capital-intense fixed assets (e.g., machining equipment)
> Long cash conversion cycle
> Limited to choosing between not investing in new infrastructure or borrowing from
expensive alternative lending sources with APR of 18.00-50.00%+2
As a result of standing up the Innovation Loan Fund,SMEs will be able to overcome financing
challenges and grow their capacity
Financing Challenges of SME Manufacturers

11. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 11
INNOV. LOAN FUND: THE IMPACT ON SME MANUFACTURERS (2 OF 2)
SME Manufacturer Capital Needs by Phase of Business Maturity1
Machinery /
equipment and
facility
improvements
are critical areas of
need across almost
all phases of
business maturity
Seed Start Up Growth
Mature –
Established
Mature –
Expansion
Revitalization
Construction, Land,
or Building Acquisition
Facility Improvements,
Remodeling
Leasehold Improvements
Machinery and Equipment
R&D, Innovation
Inventory, A/R,
Working Capital
Refinancing, Capital
Restructuring
Other Types of International
Growth
Low Low / Medium Medium Medium / High High N/A
1
NIST MEP. Small Manufacturers Capital Access Inventory and NeedsAssessment. November 2011.
In particular, the Innovation Loan Fund will enable SMEs to invest in critical areas of need such as
machinery / equipment and facility improvements

12. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 12
Represented today by:
Michael Ulbrich, President
of NY Operations,EWI
mulbrich@ewi.org
• The leading engineering and technology organization in
North America dedicated to developing, testing, and
implementing advanced manufacturing technologies for
industry
• Nonprofit founded in 1984; 170 professionals; national
client base with hubs in Columbus, Buffalo, and
Colorado
• Bridges the gap between R&D, innovation, and
implementation for manufacturers
• Blue-chip client list spanning nearly every segment of the
manufacturing industry
• Viewed by government, industry, and others as the go-
to resource for advanced manufacturing and technical
innovation
• A manufacturing innovation thought leader and
practitioner

13. Next Street Financial LLC © Copyright 2016 – CONFIDENTIAL 13
Represented today by:
Kevin Boes, President and
CEO, LISC’s New Markets
Support Company
KBoes@newmarkets.org
• Local Initiatives Support Corporation (LISC)
• National nonprofit CDFI (Community Development
Financial Institution) that equips struggling communities
with the capital, strategy and know-how to become
places where people can thrive
• Founded in 1979; 500 professionals; national client base
with offices in 31 American cities and work in hundreds
of rural communities across the company
• Invested $1.3 billion in grants, loan, and equity in 2015,
leading to development projects worth $4.2 billion
• Delivers innovative financing through wholly-owned
subsidiary, New Markets Support Company
(headquartered in Chicago), to advance strategic goals
and community development efforts across the country