A n n u A l R e p o R t

Transcription

1 2014 Annual Report

2 LETTER FROM THE DIRECTOR Nationally, 2014 proved to be a challenging year in many respects. SBA 504 loan approvals were down 26% across our region through July and were down 25% nationally. Our region was also down 19% in dollar amount of loans, matching the national total. TPRDC, however, was only down 14% in loan approvals, significantly better than the national and regional averages, and actually benefitted from a 5% increase in dollar amount of loans. There are many factors that contribute to the lulls in small business lending, among them being stricter regulations imposed on banks and small business owners not meeting the criteria for loan approvals. One of the tools at the disposal of small businesses and banks across the U.S. to help bridge this lending gap is the SBA 504 Loan Program. The 504 program was created in 1980 as a means to expand access to capital and give small business owners the financial resources to grow and create jobs. This is accomplished through a partnership between a CDC such as TPRDC, a lender, and the borrower. This structure of financing allows the borrower to inject as little as 10% into the project, while the rest is financed. The numbers for TPRDC reflect that banks and borrowers alike in the Texas Panhandle are aware of and benefiting from the program. Several 504 program enhancements were implemented in 2014 that will provide TPRDC and its lending partners better tools to serve clients and make the program even more accessible. We proudly serve the businesses of the Texas Panhandle and thank them for helping make 2014 a rewarding year, despite all of its challenges. We are pleased to share with you some of the successes our clients have had in the past year. Doug Nelson We proudly serve the businesses of the Texas Panhandle

3 HIGHLIGHTS Over the past 31 years, the Texas Panhandle Regional Development Corporation has provided 214 loans through the use of SBA 504 financing. These loans have resulted in financing for over $298 million dollars worth of projects. The primary objective of the program is economic development, and TPRDC has assisted businesses to create and/or retain 2,635 jobs through these SBA loans. In fiscal year 2014, TPRDC had 7 loans approved by SBA with total project costs exceeding $26.4 million dollars. Of this total, almost $6.1 million dollars came from SBA funding. These projects are estimated to create and/or retain 57 jobs. TPRDC also funded 4 loans in fiscal year 2014 with total project costs of more than $15.0 million dollars for a total of over $4.5 million dollars in SBA funding. TPRDC also operates the Community Development Micro-Loan Program under a contract with the City of Amarillo. In fiscal year 2014, TPRDC approved one loan with a total project cost of $72,000 dollars, $35,000 of which came directly from the City of Amarillo Community Development Micro-Loan funds. The program targets low to moderate income individuals within the city limits. This Micro-Loan program is capitalized with Community Development Block Grant funds granted to the City of Amarillo. TPRDC financing has allowed these businesses to begin operations or expand into larger facilities, and this report highlights a few of these. TPRDC s goal is to assist, promote, and advance the business prosperity and economic welfare of the State of Texas. Through the cooperative efforts of our lending partners, TPRDC is able to provide loans to small businesses including new, early stage, and established businesses with the goal of expanding and creating jobs.

4 Amarillo Livestock Auction SBA 504 Financing Amarillo Livestock Auction is one of the largest cattle auction facilities in the world. The auction opened its doors in 1935 and has been in operation for almost 80 years. With 38 acres of land, it has the capacity to hold up to 10,000 head of cattle. It also serves as one of the area s leading attractions, bringing a diverse group of people through Amarillo on a regular basis. Keith Parrott started working in the cattle industry over 30 years ago. He has held many different positions and has carried out various duties in livestock auctions all across the state of Texas. In 2009, Mr. Parrott was given the opportunity to run Amarillo Livestock Auction. His years of experience in the cattle industry helped turn the auction back into a profitable business. In the summer of 2013, Mr. Parrott sought to purchase the building, rather than continuing to lease it, and decided to use the SBA 504 program and a loan from The State National Bank of Groom to this end. Name: Amarillo Livestock Auction Owner: Keith Parrott Location: Amarillo, TX Jobs Retained and Created: 5 Lending Partner: The State National Bank of Groom As a result of the loan, five new, full-time jobs will be created within the business, and Mr. Parrott was able to secure low, fixed interest rate financing for 20 years.

5 M & R Package Store SBA 504 Financing M & R Package Store is a full service liquor store in the Amarillo area. They began operations approximately 27 years ago by two couples whose initials made up the M & R. The store has regular customers from Texas, New Mexico, Kansas, and Oklahoma. In late 2012, Charles Leard purchased the business from its previous owner. Mr. Leard has an extensive background in alcohol sales and distribution as he worked for Budweiser for almost 18 years. At Budweiser, he gained much experience relating to the industry, as he worked in all facets of the business, including on-premise and offpremise management. Upon purchasing the store, he quickly realized the enormous growth potential for the business and saw an opportunity to expand. Mr. Leard approached TPRDC about obtaining financing through the SBA 504 program in conjunction with a loan from Amarillo National Bank to build a new location on North Western Street in Amarillo. Name: M & R Package Store Owner: Charles Leard Location: Amarillo, TX Jobs Retained and Created: 4 Lending Partner: Amarillo National Bank He plans to create four new, full-time jobs in their new Amarillo location. M & R Package Store now operates stores in Amarillo and Perryton.

6 Mahaffey Orthotics & Prosthetics SBA 504 Financing Mahaffey Orthotics & Prosthetics was founded in 1997 and is owned and operated by Cliff Mahaffey. The business manufactures and sells products such as Ankle-Foot Orthoses and Knee-Ankle-Foot Orthoses, cranial remodeling helmets, orthopedic braces and artificial limbs to their patients in need of such medical devices. Mr. Mahaffey established the business to provide a more personal level of patient care for the community. He is certified by the American Board of Certification (ABC) and the Board of Orthotics & Prosthetic Certification (BOC) in both disciplines. He also holds a Texas State license. With business increasing, Mr. Mahaffey recognized a need to relocate into a larger facility. He utilized a loan from FirstBank Southwest and SBA 504 funding to purchase a building that better suited their current and future needs. The business expanded into a new 2,052 square foot building with a 940 square foot basement on West Amarillo Boulevard. Name: Mahaffey Orthotics & Prosthetics Owner: Cliff Mahaffey Location: Amarillo, TX Jobs Retained and Created: 4 Lending Partner: FirstBank Southwest Mahaffey Orthotics & Prosthetics opened in the spring of 2014 in their new location, and they expect to create four new, full-time jobs because of their expansion.

7 Hilton Garden Inn SBA 504 Financing The Hilton Garden Inn is a mid-scale, select service hotel in Victoria, Texas. It offers its guests a convenient location and a large selection of amenities. The hotel opened in the summer of Vikaskumar Desai is a hotel owner/operator with extensive experience in the industry. Mr. Desai has been very active in the hotel industry and currently owns and operates several hotels throughout the state of Texas. He began his career path in 1995 and has been involved in the development and/or operation of over 13 hotels. In the first quarter of 2012, he decided to use the 504 Program and a loan from Herring Bank to finance the construction of this 118 unit hotel. Mr. Desai saw an opportunity in Victoria, Texas due to the recent commercial developments in the area and the economic impact of the Eagle Ford Shale play. He and his partners used the loan proceeds towards the construction, equipment and fixtures of the hotel. Name: Hilton Garden Inn Owner: Vikaskumar Desai Location: Victoria, TX Jobs Retained and Created: 30 Lending Partner: Herring Bank With this new venture, Mr. Desai and his partners anticipate creating 30 full-time job equivalents in the next two years.

8 El Taylors Auto Sales & Finance Caleb Hernandez opened El Taylors Auto Sales & Finance in February The business sells used cars on a lot that was being leased by the borrower. Mr. Hernandez typically will have 15 to 20 cars in inventory on his lot. Caleb Hernandez has worked many different jobs in his life and had no experience selling cars when he opened El Taylors Auto Sales & Finance. The used car business was his first venture into the industry. After leasing for two years, he was given the opportunity to purchase the lot in early 2014 by the owner. He had already made several leasehold improvements to a building on the lot that operates as the business office. He also recognized the value of owning the car lot rather than continuing to make rent payments. City of Amarillo Community Development Micro-Loan Program Name: El Taylors Auto Sales & Finance Owner: Caleb Hernandez Location: Amarillo, TX Jobs Retained and Created: 1 After being turned down for a loan by conventional lenders, Mr. Hernandez came to the TPRDC. After meeting the qualifications for the City of Amarillo Community Development Micro-Loan program, Mr. Hernandez was able to purchase the car lot using a Micro-Loan in conjunction with an owner carry note. El Taylors Auto Sales & Finance expects to create one new job because of the loan.

9 TPRDC Board of Directors TPRDC Membership Rob Parker Herring Bank President Lorie Vincent High Ground of Texas Vice President Terry Dickerson Happy State Bank Secretary Kristen Moudy Wheeler EDC Treasurer Braden Black The Skilled Trades Company Director Kenneth Burgess FirstCapital Bank of Texas Director Sheryl Hardy Perryton CDC Director Clay Rice Pampa EDC Director Brian Vincent Entrepreneur Director LENDING Kenneth Burgess Terry Dickerson Rob Mansfield Will Miller Rob Parker Roberta Sewell Stuart Sutton BUSINESS Braden Black Craig Brewton Tim Cox Brian Hughs Brock Thompson Brian Vincent COMMUNITY BASED ORGANIZATIONS Chris Alexander Darryl Birkenfeld Jason Harrison Kristen Moudy Rick Palmer Lorie Vincent GOVERNMENT Chandra Eggemeyer Sheryl Hardy Michael Kitten Clay Rice Mike Running David Rushing

10 STAFF AND CONTACT INFORMATION Doug Nelson Administrative Director Chuck Rivas Loan Officer Andy Arias Servicing Officer

11 TPRDC would like to thank our borrowers who had SBA 504 and Micro-Loans fund in fiscal year We would also like to thank all of the participating lenders with whom we had the privilege to work in the past year. Your participation is integral to our clients success!

12 801 S. FILLMORE, SUITE 205 AMARILLO, TX PHONE: (806) FAX: (806)