Financing the. future. of small business 2014 ANNUAL REPORT

Transcription

1 Financing the future of small business 2014 ANNUAL REPORT

2 Mission Statement The WBD Group provides the knowledge, service, resources and solutions that foster economic development to create jobs, grow businesses and build communities. Vision The WBD Group will be an organization passionate about providing economic development solutions in an effective and ethical manner. B

3 CEO Report This month I finish my 29th year of service with Wisconsin Business Development. It will be my last. It amazes me how long the weeks have been, but how short have been the years. I will step down as the CEO effective January 1, I am so very pleased that Dan Schneider will succeed me. We have planned this for some time. Dan joined us in the 90 s and for a brief while left us to head a banking unit. One afternoon during that absence, I put down my pencil and decided to call Dan and asked to meet him. By 9 pm that night Dan Joe Wolfe had agreed to return to WBD and began his journey to the presidency. I know that many people could succeed me, but I wanted Dan for two reasons. First, Dan has all the qualities necessary for the position, including a sharp analytical mind, a passion for quality, the gifts of a teacher and a great spirit of teamwork. Secondly, Dan has that something that is impossible to teach; an incredible love for our company, who we are, what we do, and why we do it. It may surprise many to learn that in high school I ran the quarter mile (personal best of 55.8 seconds) and the mile relay. These were the same distance, but very different races. My favorite was the relay. I was the second runner. The first helped us build a lead, and the third and fourth helped us catch back up. For the first runner the relay is the same as the quarter mile. Start from the blocks and run like hell. The others get a running start, which is good, but must successfully negotiate the passing of the baton. It takes two to make the transfer happen: one - to reach out and, before collapsing, offer the baton; and the other - to reach back and, with eyes forward and fresh legs, grab it and go. I thank John Giegel for his confidence in passing the baton to me just as I pass the same baton, with the same confidence, to Dan. Godspeed. Sincerely, Joe Wolfe CEO 1

4 Wisconsin Business Development Finance Corp. Since 1981, WBD has partnered with Wisconsin financial institutions to fund more than $2 billion of small business loans that have created more than 64,000 jobs statewide. WBD offers SBA-guaranteed 504 long-term, fixed-rate loans to businesses to use for acquisition and expansion projects. These solutions allow small business owners to keep cash for other needs and provides lenders the opportunity to preserve liquidity and enhance security, reducing risk. This past year, WBD was the 13th largest producer out of the 255 CDCs in the U.S. WBD participated in projects with over 100 Wisconsin lenders and served as an integral hub in every project. Additionally, WBD bridged the constant need for access to capital markets while keeping the interests of the lender, the SBA, and more importantly the small business at the forefront. Highlights: Hired three new staff members in the Madison, Oshkosh, and Stevens Point offices. Eric Ness, District Director for the U.S. Small Business Administration, presents the 2014 WI Small Business Persons of the Year Award to Tom Jagemann, CEO, and Ralph Hardt, President Hosted annual statewide seminar series entitled There s Still Work to be Done in 15 locations drawing over 350 attendees. Tom Jagemann, CEO, and Ralph Hardt, President of Jagemann Stamping Company, were recognized by the SBA in Washington, D.C. as the 2014 Wisconsin Small Business Persons of the Year. Based in Manitowoc, Wisconsin, Jagemann Stamping is known world-wide as a leading manufacturer of deep drawn, progressive, and fine blanked stampings. WBD is proud to have assisted Jagemann Stamping with their expansion that created over 100 jobs. In May, WBD hosted the 2nd Annual Jules Matsoff Memorial Golf Outing in conjunction with the Wisconsin Lenders Conference, raising funds for SCORE chapters of Wisconsin. SCORE provides free and confidential counseling/mentoring and client education to small businesses. Pictured: 2014 Jules Matsoff Memorial Golf Outing in Wisconsin Dells 2

5 WBD Making a Difference Wholesale Trade $34,274, Loans Retail Trade $612,231, Loans Professional, Scientific & Technical $83,025, Loans Other Services $93,876, Loans 13% 17% 15% 4% SBA 504 Portfolio By Industry 1,342 Total Loans 17% 22% % calculated by total loans Loan amounts are from the date at funding 3% 4% 4% Accommodation & Food Service $135,395, Loans Agriculture, Forestry, Fishing & Hunting $45,495, Loans Arts, Entertainment & Recreation $40,310, Loans Home Health & Social Assistance $33,217, Loans Manufacturing $180,909, Loans SBA 504 Portfolio Size WBD SBA 504 Funded Projects Fiscal Year End Number of Loans Portfolio Size ,342 $662,410, ,326 $663,240, ,196 $555,888, ,146 $529,180, ,088 $482,217,259 Fiscal Year Number of Loans Total Project WBD Amount Lender Amount Borrower Injection $206,254,896 $76,009,883 $102,369,611 $27,875, $491,414,842 $185,492,732 $230,339,431 $75,582, * 168 $261,595,035 $94,042,753 $122,753,364 $44,798, $281,514,330 $101,534,934 $140,647,157 $39,332, $242,253,029 $84,119,574 $123,790,302 $34,343,153 Jobs Created or Retained WBD SBA 504 Funded Projects 1,218 2,829 2,075 2,023 1, * WBD SBA 504 Approvals Fiscal Year Number of Loans Total Project WBD Amount Lender Amount Borrower Injection $201,382,021 $71,921,426 $100,668,516 $28,792, $275,634,113 $101,835,342 $135,675,477 $38,123, * 307 $596,019,020 $222,308,585 $275,812,488 $97,897, $206,043,473 $76,358,373 $101,055,916 $28,629, $315,895,440 $112,755,902 $158,954,916 $44,184,622 *Includes SBA 504 and SBA Temporary 504 Refinance program approvals. 3

6 The Power of Partnership WBD acknowledges the experienced lenders that partnered with us during this fiscal year. Partnership with lenders is an essential part of the SBA 504 loan program and it is only through the continued dedication and support of these organizations that we were able to bring small businesses the support they needed to grow, expand, and improve their surrounding economies. AbbyBank, Wausau Advantage Community Bank, Wausau American Bank, Fond du Lac American National Bank Fox Cities, Appleton Associated Bank, N.A., Milwaukee Associated Bank, N.A., Waukesha Badger Bank, Johnson Creek Bank First National, Oshkosh Bank First National, Sheboygan Bank Mutual, Eau Claire Bank of Wisconsin Dells, Lake Delton Bank of Wisconsin Dells, Wisconsin Dells Blackhawk Bank, Beloit BMO Harris Bank, N.A., Green Bay BMO Harris Bank, N.A., Hartland BMO Harris Bank, N.A., Madison BMO Harris Bank, N.A., Watertown BMO Harris Bank, N.A., Whitefish Bay Bremer Bank, La Crosse Citizens Bank of Mukwonago, Genesee Depot Citizens State Bank, Hudson Citizens State Bank - La Crosse, La Crosse Commerce State Bank, West Bend Community Bank of Cameron, Grantsburg Community First Bank, Richland Center Community First Credit Union, Green Bay Cornerstone Community Bank, Menomonee Falls Coulee Bank, La Crosse CoVantage Credit Union, Antigo Denmark State Bank, Green Bay F&M Bank, Tomah First Bank Financial Centre, Oconomowoc First Midwest Bank, Gurnee, IL First National Bank - Fox Valley, Appleton First National Bank of River Falls, Prescott First National Community Bank, Hudson First National Community Bank, New Richmond First State Bank and Trust, Hudson Fox Valley Savings Bank, Fond du Lac Gateway Community Bank, Beloit Hiawatha National Bank, Hudson Horicon Bank, Beaver Dam Integrity First Bank, Wausau 4

7 Investors Community Bank, Manitowoc Ixonia Bank, Ixonia Johnson Bank, Waukesha JPMorgan Chase Bank, N.A., Milwaukee Layton State Bank, New Berlin Merchants Bank, Eau Claire National Bank of Commerce, Superior National Exchange Bank & Trust, Fond du Lac Nicolet National Bank, Green Bay Nicolet National Bank, Rhinelander Oregon Community Bank & Trust, Oregon Park Bank - Milwaukee, Brookfield Park Bank - Milwaukee, Milwaukee Peoples State Bank, Eagle River Peoples State Bank, Menomonie Peoples State Bank, Wausau PNC Bank, N.A., Milwaukee PyraMax Bank, Greenfield River Cities Bank, Baraboo River Cities Bank, Wisconsin Rapids River Valley Bank, Wausau The Bank of Kaukauna, Kaukauna The Bank of New Glarus, Monroe The Business Bank, Appleton The Business Bank, Green Bay The Peoples Community Bank, Mazomanie Timberwood Bank, Tomah Town Bank, Madison Town Bank, Lake Geneva Tri City National Bank, Hales Corners Tri City National Bank, Kenosha Tri City National Bank, West Allis United Bank, Eau Claire WaterStone Bank, SSB, Waukesha West Pointe Bank, Oshkosh Westbury Bank, Brookfield Wisconsin Bank & Trust, DePere Wisconsin Bank & Trust, Lancaster Wisconsin Bank & Trust, Madison Wisconsin River Bank, Sauk City Wolf River Community Bank, Hortonville WPS Community Bank, Madison The American National Bank, Beaver Dam 5

8 Outstanding Client Success The Small Business Achievement Award Proto-1 Manufacturing, LLC Winneconne, WI Proto-1 Manufacturing was established in late 1996 and has become a leading manufacturer of specialized pipe and tubing fabrication equipment. Today, the company is led by John and Valerie Schwochert. Proto-1 collaborates with their customers in the development of progressive tube end forming systems made to precise tolerances tailored to their customer s exact specifications. The parts made by Proto-1 machines are used by a variety of companies and products. Over 100 companies that service companies like Caterpillar, Navistar International, John Deere, Ford, Nissan, Toyota, Volvo, Briggs & Stratton, and Boeing Aircraft, rely on Proto-1 to provide the machines to make the parts they need. Proto-1 produced materials can be found in exhaust tubing, automotive airbag deployment systems, heavy truck charged air systems, ATV s, motorcycle exhaust forms, copper tubing for plumbing, heating and air conditioning systems, hydraulic systems and more. Owners John and Valerie Schwochert are dedicated to ensuring that Proto-1 Manufacturing is an innovative company. In 2006 and 2013, Proto-1 utilized the SBA 504 program and expanded their existing facility by a combined 54,750 square feet. The additional space has allowed the company to offer more products and increase their efficiency, that has created 25 jobs. By designing and producing products specific to their customer s needs, Proto-1 has proven that they are a leader in the tube manufacturing industry, able to offer creative and innovative solutions in a changing marketplace. Our specialty is making the impossible, possible, assisting our customers with the difficult parts that nobody else wants to or thinks can t be done, and the ability to adapt and change quickly because we are a smaller company and have a pride and passion for our work. John Schwochert, Owner 6

9 Outstanding Client Success The Wisconsin Business Innovation Award Fen-Tech, Inc. Superior, WI Fen-Tech is a manufacturer of vinyl windows and doors; it specializes in bending and welding PVC based extrusions for a wide variety of window and door manufactures and wholesalers across North America. The company has developed a unique process to bend and shape vinyl and plastics in a manner that allows the required shape to maintain its intended form. In 1992, Fen-Tech was formed in Superior, WI and came under new ownership in 2011 to Pat Heytens and his business partners Adam Bachand, and Corey Bachand. WBD and Fen-Tech s lending partner assisted in the purchase of the building and equipment utilizing the SBA 504 program. Over its 20 year history, the company has adapted to changes and swings in the construction industry and has a strong reputation in a relatively small market. Fen-Tech focuses on working with large window manufacturers to help them become more cost efficient in the supply of their specialty windows or component parts. They continue to create custom specialty products and focus on developing new products in the industry. Fen-Tech spent two years researching and developing a new garden window, The Botanica Garden Window. Historically, the industry offered a garden window that was poorly designed, leading to structural issues and leaking. The Botanica Garden Window was the highest scored window tested by the American Architectural Manufacturers Association. Fen-Tech s commitment to innovation and the local economy has allowed the company to grow and increase employment from 34 employees in 2011 to the current level of 41 employees. WBD s role in our purchase of FEN-TECH in early 2011 was instrumental to actually getting the deal done. It was important to the previous owners to find a local buyer that would not move the company in an effort to maintain the jobs created by the company over the years. Being local we had no experience in this specific industry and had to look for a way to acquire the company in such a way that a lender would have the comfort level that we would succeed. The combination of a local bank and SBA was the perfect vehicle to accomplish all of the above. Pat Heytens, President 7

10 Outstanding Client Success Wisconsin Business Community Impact Award Gordy s County Market Arcadia, Augusta, Chetek, Chippewa Falls, Cornell, Eau Claire, Galesville, La Crosse, Ladysmith, Neillsville, Rice Lake, and Shell Lake, WI In 1966, Gordon (Gordy) and Donna Schafer established Gordy s County Market in Chippewa Falls, WI. The Schafer family wanted to offer a local grocery store to meet the specific needs of the people of the Chippewa Valley by offering fresh products, low prices, and friendly service. Forty-eight years later Gordy is retired and his children, Jeff, David, Richard and Jennifer manage the family business. Since it was established, Gordy s has grown from one location in Chippewa Falls to a total of 13 locations spanning from Shell Lake to Augusta, WI with three more locations in Arcadia, Galesville, and La Crosse, WI to be opening soon. Currently, Gordy s employs over 1,600 full-time and part-time employees in ten different communities. Gordy s County Market has been recognized in Wisconsin and beyond for their success which Gordy attributes to their great employees. They were recently awarded in 2010 the Outstanding Philanthropist of the Year from the Chippewa Valley Fund Raising Professionals organization, the Small Business of the Year award from the Eau Claire Chamber of Commerce in 2012, Grand Master Marketer award from Supervalu in 2012, and most recently the 2014 Retail Business of the Year given by the Rice Lake Chamber of Commerce. In addition, Jennifer Schafer and Jeri Maher, both Gordy s employees, were recently awarded 2013 Top Women in Grocery by Progressive Grocer magazine among four Wisconsin women and 230 throughout the nation. The small business loan that Gordy s was able to receive through the WBD was instrumental in helping us continue to grow in western Wisconsin. Our goal is to expand into communities to meet the grocery needs of new customers and with loans that have a low interest rate this is made possible. The WBD helped streamline this process and overall the whole experience was quite simple. We are thrilled with this loan because it s at an interest rate that we are happy with and it has allowed us to establish stores in rural communities. David Schafer, CFO 8

11 Lincoln Opportunity Fund Lincoln Opportunity Fund (LOF) is a not-for-profit Certified Community Development Financial Institution (CDFI), wholly owned by Wisconsin Business Development Finance Corp. LOF provides loans as well as services to small businesses throughout Wisconsin with a focus on low income communities. LOF s objective, consistent with CDFI, is to increase economic opportunity and promote community development investments for underserved populations and in distressed communities. Programs Offered By LOF Include: Revolving Loan Fund SBA Microloan Program SBA Community Advantage Program Capital Access Program (CAP) Business Assistance Highlights: Approved as a Community Advantage Lender for the U.S. Small Business Administration. Certified as an SBA Microloan Intermediary Lender in 2014 and will have access to $750,000 of funds. Pictured: Eric Ness, District Director for the U.S. Small Business Administration presents Microloan funds to Pam Rich, LOF President Community Development Financial Institutions awarded LOF $124,100 in Technical Assistance (TA) grant funds. The funds will be used to develop the LOF staff, provide training for small businesses as well as aid in capitalization planning, TA program expansion across the state and support marketing and technology improvements to deliver TA programs. Loan underwriting and assessment services for Revolving Loan Fund programs with the African American Chamber of Commerce Wisconsin, American Indian Chamber of Commerce, Hispanic Chamber of Commerce, and the Hmong Wisconsin Chamber of Commerce. LOF continues to grow and currently has three full-time employees to support its programs. Hosted a Brown Bag Lunch which resulted in new relations with community development organizations in the Milwaukee area. Pictured: Wyman Winston, Executive Director of WHEDA presenting at the Brown Bag Lunch in July

12 Wisconsin Business Development Service Company Wisconsin Business Development Service Company, LLC (WBDSC) is a wholly owned subsidiary of Wisconsin Business Development Finance Corporation. Experienced WBDSC staff assist both internal and external customers with credit underwriting, application processing, and portfolio servicing. WBDSC staff is knowledgeable in a wide range of loan fund programs administered by the U.S. Small Business Administration, U.S. Department of Treasury s Community Development Financial Institutions Fund, and local revolving loan funds. SERVICE CO. Highlights: Certified as an SBA Lender Service Provider (LSP) allowing WBDSC to assist lending institutions with SBA 7a loan packages. Acquired two CDC portfolios for a total of 30 loans totaling $9,420,239. Supported WBD programs including: underwriting and servicing for New Market Tax Credit projects and loan servicing support for SBA 504 portfolio. Assisted Lincoln Opportunity Fund in the enhancement of its credit and loan servicing processes. Wisconsin Business Growth Fund Wisconsin Business Growth Fund, Inc., (WBG) raises capital that will be used to finance businesses in Wisconsin s low income communities. WBG received an allocation of $65 million (awarded $30M in 2008 and $35M in 2009) under the New Markets Tax Credits Program (NMTC) through the U.S. Department of Treasury. This allowed WBG to focus on providing access to below market rate capital to businesses willing to create jobs and provide services in Wisconsin s most underserved areas. The awards provided capital to eight NMTC projects in Wisconsin which created over 1,850 full-time and over 70 part-time jobs. We continue to look for investment opportunities in Wisconsin and the Rockford area that will provide high impact community results. Highlights: Hired Randy Kyle, CPA to the position of President of WBG. Randy is responsible for identifying and working with businesses located in low income communities that can use a NMTC allocation to create job opportunities and provide services that will be accessible to members of those communities. Applied for a 2014 NMTC allocation in the amount of $45 million. Allocations will be announced in the spring of Sponsored the Center on Business and Poverty (COBAP), through the UW-School of Business to provide free tax preparation services. Over 1,000 individuals were served and saved an average of $500 in refunds, credits, or tax preparation fees for the low income participants seeking help. 10

13 Wisconsin Business Development Finance Corp. Board of Directors Dave Babel Babel Tax & Accounting, LLC Jeff Bowman Bay Bank Steve Burgess National Bank of Commerce Deb Clements Jim Ebben BMO Harris Bank, N.A. Anne Hlavacka UW-La Crosse Small Business Development Center Kim Kindschi Manitou Associates Neil Lerner UW-Madison Small Business Development Center Tom Mihajlov UW-Eau Claire, Dept. of Accounting & Finance Dave Muehl Badger Farms, LLC Roger Nacker Wisconsin Economic Development Institute, Inc. Dave Provancher WaterStone Bank Wenda Roycraft Tim Schneider Investors Community Bank Steve Shellman Schenck SC Joe Wolfe Wisconsin Business Development Advisory Members Janet Ady Ady Voltedge William Bradley Bank First National Mark Burwell E-Hub Tony Busch Priora Cash Flow Management, LLC Diego Camacho, Jr. Ellestad Camacho Funeral Home Bill Clapp David Earll Robert Fisher Merrill Lynch Chadd Frank Waukesha State Bank Joe Friar Peoples State Bank John Giegel Community Business Financial Services Jim Gruentzel Char Gurney Royal Credit Union Denise Hegland JPMorgan Chase Bank Kate Hill Heartland Information Research, Inc. Mike Hines Hines Law Office, S.C. Dana Hoffmann Summit Credit Union Craig Hokanson Johnson Bank Carl Jenkins BMO Harris Bank, N.A. Dave Kappelman Denmark State Bank Pam Kolasinski David Koth FirstMerit Bank Randy Kyle Wisconsin Business Development Bruce Lammers Ridgestone Bank Julian LaMue Associated Bank, N.A. Barb LaMue Wisconsin Economic Development Corporation Ken Little Seaway Bank & Trust Company Salli Martyniak Forward Community Investments Tom Mews First National Community Bank Bill Mitchell Waukesha County Economic Development Corporation Darwin Nelson Pamela Rich Wisconsin Business Development Mike Roberts CPA Patrick Schloss FIRE / City of West Allis Karl Schmidt David Schneider D and A Services, LLC Dan Schneider Wisconsin Business Development Jerry Smyth Schreiber Foods, Inc. Scot Thompson Denmark State Bank John Vitek Vitek Law Office Tom Wolfe Wisconsin Business Development Wisconsin Business Development Service Company Advisory Board Members Dave Babel Babel Tax & Accounting, LLC Steve Burgess National Bank of Commerce David Earll Dave Muehl Badger Farms, LLC John Vitek Vitek Law Offices Wisconsin Business Growth Fund Board of Directors Jeff Bowman Bay Bank Dan Depies Goodwill Eve Hall African American Chamber of Commerce of Milwaukee John Hoffmire UW-Madison School of Business, Center on Business & Poverty Peter Munoz Nancy Nestler Multicultural Community Services John Phelps Rockford Local Development Corp. Jim Ryan City of Rockford Illinois Steve Shellman Schenck SC John Vitek Vitek Law Office Lincoln Opportunity Fund Board of Directors William Bradley Nicolet Bank Mark Burwell E-Hub Deb Clements Paul Fehrenbach BMO Harris Bank, N.A. Anne Hlavacka UW-La Crosse Small Business Development Center Pam Kolasinski John Miller Milwaukee Economic Developlment Corporation (MEDC) Dave Provancher WaterStone Bank Ahmed Quereshi Law Offices of Ahmed J. Quereshi, LLC Tim Schneider Investors Community Bank 11 Board of Directors and Advisory Members

14 12 WBD Building Communities

15 Our Core Values To CREATE a culture that supports our core values, we will: We are pleased to share the outcome of our 2014 strategic planning process. The results include an updated Mission Statement, creation of a new Vision and refreshed Core Values as noted above and on the inside front cover. 13

16 Wisconsin Business Development Finance Corporation Madison (Corporate Office) Phone (608) Fax (608) River Place Suite 1 Monona, WI Oshkosh Phone (920) Fax (920) State Highway 44 Suite C Oshkosh, WI Waukesha Phone (262) Fax (262) W229 N1433 Westwood Drive Suite 206 Waukesha, WI Eau Claire Phone (715) Fax (715) Oakwood Mall Drive Suite 201 Eau Claire, WI Stevens Point Phone (715) Fax (715) Post Road Stevens Point, WI Hudson Phone (715) Fax (715) Monetary Boulevard Suite 209 Hudson, WI Green Bay Phone (920) Challenger Drive Suite 150 Green Bay, WI Racine Phone (262) Fax (262) Durand Avenue Suite 700 Racine, WI Wisconsin Business Development Service Company Madison (Corporate Office) Phone (608) Fax (608) River Place Suite 1 Monona, WI Wisconsin Business Growth Fund Madison (Corporate Office) Phone (608) Fax (608) River Place Suite 1 Monona, WI Lincoln Opportunity Fund Milwaukee Phone (414) Fax (414) West Canal Street Suite 100 Milwaukee, WI Call us at (800) Visit us online at