20090521 Small Business - KESDEE · Diego District Office of the SBA. TM ... • Tax credits for...

www.sddt.com/smallbiz09 Thursday, May 21, 2009 / Vol. 124, No. 101

Portions of this special publication were produced in partnershipwith the San Diego Regional Chamber of Commerce and the SanDiego District Office of the SBA.

TM

Stimulus package sets aside $730 million for SBA programsBByy RREEBBEECCCCAA GGOO

The Daily Transcript

More than $730 million of the feder-al stimulus has been marked specificallyfor small business, and although thedetails remain scarce, a few businessleaders agree that certain programs lookpromising.

“Some kind of spending, when itcomes via the federal government or thestate government, certainly offsets someof the reduced spending in the privatesector,” said Sudershan Shaunak, direc-tor of the Small Business DevelopmentCenter in North County.

The government aid comes in theform of loan guarantees, financing, taxbenefits and contract opportunities,among other things — all designed tohelp businesses weather the economicdownturn and retain their competitiveedge.

The favored measures — the onesthat have elicited the majority of enthu-siastic chatter — are all in some wayrelated to lending and make up themajority of the allocated funds.

For example, approximately $255million under a new Small BusinessAdministration loan program is avail-able for business owners to pay off exist-ing debt.

These loans of up to $35,000 underthe America’s Recovery Capital pro-gram, or ARC, do not require collateral,are interest-free, carry a 100 percentSBA guarantee, require no SBA fees anddefer payment for more than year.

“It’s unheard of,” said Ruben Garcia,San Diego district director for the SBA.“One-hundred percent guaranteed? It’s

a no-brainer.”The SBA typically guarantees

between 40 percent and 85 percent ofloans — depending on the size and typeof loan — meaning the agency takes onsome of the lender’s risk and theoreti-cally makes lending easier and moreappealing.

The SBA also usually chargesbetween 2 percent and 3 percent inguarantee fees.

The applicant does have to prove thathis or her business is “viable” and hasthe ability to survive past the downturn.

The funds are available from variousSBA lenders on a first come, first servebasis until Sept. 30, 2010 — unless thefunds are used up before then.

“My recommendation is make thedecision quickly and act on it,” Garciasaid. “There is a possibility that thefunds will run out.”

More than half of the federal stimulusdollars going to the SBA — $375 million— will allow the federal agency to guar-antee up to 90 percent of other loansand reduce or eliminate the SBA fees.

Another $30 million will expand theSBA’s microloan program, which pro-vides small loans through communitypartners, or microlenders. The $30 mil-lion is enough to finance up to $50 mil-lion in new lending and $24 million intechnical assistance grants to microlen-ders, according to the SBA Web site.

“We see a lot of businesses who havebeen out there and done well,” Shaunaksaid. “It’s not that their business model isbad; it’s that they don’t have customerswalking into their stores right now.

“This type of loan will help tide them

Postal increaseforces businessesto cut more

BByy JJOOYYCCEE MM.. RROOSSEENNBBEERRGGThe Associated Press

NEW YORK — Small business-es already working to hold costsdown during the recession haveanother expense to contend with:higher postal rates.

The price of a first-class stampwent up 2 cents to 44 cents lastweek, the latest in a series ofincreases this year by the U.S.Postal Service and private ship-pers including FFeeddEExx IInncc.. (NYSE:FDX) and UUnniitteedd PPaarrcceell SSeerrvviicceeIInncc.. (NYSE: UPS). The price hikeshave motivated small businessowners to think about how theycan send letters, cards and pack-ages more cheaply.

They’ve made Stacie Krajchirthink about whether to mail orship at all.

Krajchir’s Los Angeles-basedpublic relations firm, TThheeBBuunnggaallooww, routinely sends prod-uct samples to magazine editors.In the past, PR companies wouldshower samples on journalists,sending packages to any and everynews outlet in the hope that some-one would give them some public-ity. Now, though, Krajchir’s staff islikely to call editors first to seehow interested they really are.

“Are they working on a story andlooking at different products toinclude in a story?” Krajchir said.If so, her company will send themsamples.

Like other small business own-ers, Krajchir has also found thatbeing creative can also keep mail-ing and shipping costs down. So,instead of sending several pack-ages to different editors at a single

See Postal increase on 14

over.”However, SBA programs often

depend on commercial lenders to dis-burse much of the funds, Shaunakpointed out, so a good deal ends uphinging on the willingness of a generallymore tight-fisted financial community.

Also, rollout of the government fundsremains slow, and because the popularARC program is a new program, manylocal business organizations have yet tosee the paperwork and the list of “dosand don’ts.”

So local small business proponentsencourage owners to prepare for otherstimulus opportunities in addition tothe SBA loan programs.

For example, look to offer a service inthe alternative energy sector or seek outspecific contracting opportunities, saidGary Knight, president and CEO of SanDiego North Economic DevelopmentCouncil.

“Understand how the money is goingto flow,” Knight said, and “be one of theproviders to the agency that’s going toget it.”

Other measures that may help smallbusinesses, according to the SouthCounty Economic DevelopmentCouncil and the SBA Web site:

• An additional $15 million toexpand the SBA surety bond program,which helps small businesses competefor public works projects.

• Tax credits for hiring unemployedveterans or disaffected youth, who wereadded to the federal Work OpportunityTax Credit program.

• Creation of Recovery Zones, whichtarget areas of declining unemploymentby offering businesses tax incentives tooperate and hire there.

• Tax write-offs of equipment pur-chases up to $250,000.

• Five-year operating loss carrybackthat allows businesses that incurred aloss in 2008 but paid taxes in prior yearsto secure a refund.

• Changes in the federal withholdingschedule that give employees more

See Stimulus on 13

Supplement to:

Small Business

2009 Small Business Award winners, Page 5

Photo: J. Kat Woronowicz

2 THURSDAY, MAY 21, 2009 • Small Business • THE DAILY TRANSCRIPT

Close-up: Delinda Anderson

Innovative Commercial Environments’designs complement surroundings

BByy TTHHOORR KKAAMMBBAANN BBIIBBEERRMMAANNThe Daily Transcript

A table isn’t just a table, a chair isn’tjust a chair, especially if the companyis IInnnnoovvaattiivvee CCoommmmeerrcciiaall EEnnvviirroonn--mmeennttss of Carlsbad.

While careful not to call herself aninterior designer, Delinda Anderson,Innovative principal, must design fur-niture so it becomes part of, ratherthan conflicts with, what the interiordesigner has created.

The company is small. There areonly four full-time and two part-timeemployees, but Anderson said they areextremely loyal.

“We’ve had people work until 2 a.m.They really feel like it’s their compa-ny,” she said.

Much like an architect, Innovativeuses an AutoCAD (computer-aideddrafting) system to design tables,chairs, desks and other types of furni-ture. It then examines the specifica-tions to determine which of some 50or so furniture manufacturers will bethe best to realize the design. Thesemanufacturers range from LLAA--ZZ--BBooyyto TTaannggrraamm SSttuuddiioo.

Anderson, who has worked in thecommercial furniture industry for thepast 23 years, said she started thebusiness in September 2006, aroundthe time her son was applying forschool at Georgetown University.

“I’m a single mother and I neededthe money for his college,” sherecalled.

After some smaller jobs, ICE landeda $1.5 million contract in January2007 to design the furniture andworkspaces for CCoolllleeggee LLooaann CCoorrpp.. in

Poway, which has since left the build-ing that GGeenneerraall AAttoommiiccss is now using.

“That job had 450 workstations,”Anderson said.

ICE also landed a $430,000 jobplus an additional $75,000 in worklater for the La Jolla Institute forAllergy and Immunology at about thissame time. The firm designed variousworkstations and furniture solutionsfor private offices.

“Our furniture is made just in time.It’s custom. So there isn’t anythingthat is kept in stock ...” Anderson said.“We design the furniture to match theroom.”

Linda Erickson, vice president ofPPooiinnttiivviittyy, an information technologyfirm in Sorrento Mesa, said ICE pro-vided all the systems furniture and thefurniture for a training room and atraining room lounge, and did it alleconomically.

“It was fantastic, beautiful furnitureat a wonderful price,” Erickson said,adding that from conception to real-ization took about two months.

Kymberli Clement, an owner’s assis-tant at PPaacciiffiicc CCooaasstt SStteeeell on MurphyCanyon Road in Kearny Mesa, saidher company budgeted about$500,000 for its furniture solutions,and the work was completed withinabout four months.

The Pacific Coast Steel job was in a25,000-square-foot space that includ-ed 45 workstations and furniture for15 private offices.

“They bent over backwards. Thisbuilding was formerly a medical sup-ply company and it really neededwork. ICE helped turn it into our ownspace,” Clement said.

Anderson is proud to say that most

The DailyTranscript

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George Chamberlin,Executive Editor

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Ellen C. Revelle, Publisher EmeritaJuly 31, 1910 - May 6, 2009

San Diego Daily TranscriptP.O. Box 85469

San Diego, CA 92186–5469(619) 232-4381

Web site: www.sddt.com

Delinda Anderson

See Anderson on 14

Photo: J. Kat Woronowicz

3THURSDAY, MAY 21, 2009 • Small Business • THE DAILY TRANSCRIPT

American Recovery and Reinvestment Act:Why local businesses should talk to their lender

What is the new AmericanRecovery and ReinvestmentAct?

The American Recovery andReinvestment Act of 2009 (RecoveryAct) was signed into law by PresidentObama on Feb. 17. It is an unprece-dented effort to jumpstart our econo-my, create or save millions of jobs,and put a down payment on address-ing long-neglected challenges.

How can a small businesstake advantage of the SmallBusiness Administration (SBA)funds recently allocated fromthe American Recovery andReinvestment Act?

The Recovery Act makes the SBApart of the solution, providing specif-ic tools to make it easier and lessexpensive for small businesses to getloans. The act also provides lenderswith new incentives to make moresmall business loans and helpunfreeze the secondary markets toboost liquidity in the credit markets.

The Recovery Act will have a sig-nificant impact on small businesses.Under the new act, some of the loanfees normally associated with SBAloans have been temporarily elimi-nated. And, because the governmentis now guaranteeing up to 90 percentof SBA 7(a) loans, lenders have moreof an incentive to make SBA loans.The SBA 7(a) loan can be used inmany ways: to provide working cap-ital, purchase inventory or equip-ment, purchase or make improve-ments to a building or make businessacquisitions. The SBA 504 loan pro-gram can be used to purchase real

estate or large equipment. Loansmade through the 7(a) programrange from $25,000 to $2 millionand up to $10 million for the SBA504 loans.

Who can benefit from theRecovery Act?

Any small business can benefit fromthe act. In San Diego, roughly 87 per-cent of businesses are classified assmall businesses. If you are a smallbusiness owner and need a loan topurchase a building, equipment orexpand, an SBA loan under theRecovery Act is the loan you shouldask your bank about.

Small businesses will benefit bothfrom the elimination of fees and fromthe historically low interest rates onboth 7(a) and 504 SBA loans.However, SBA loans are not for pub-lically traded companies, nonprofitsor investors.

If I am interested in apply-ing for funds allocated fromthe act, what is my next step?

SBA 7(a) and 504 loans under theAmerican Recovery and InvestmentAct can only be secured through alender. The first step is to look for abank that is both a “preferred” SBAlender and recognized for its SBAloan expertise, such as CaliforniaBank & Trust. As part of ZionsBancorporation, California Bank &Trust is the No. 1 SBA 504 lender inthe United States and consistently oneof the top 10 SBA 7(a) lenders.

Ask your local California Bank &Trust banker about SBA loans by call-ing 1-800-585-1722 or visit calbank-trust.com.

Submitted by California Bank & Trust

Close-up: Jeff Ellis

Appraiser helps small businesses through good times and badBByy RREEBBEECCCCAA GGOO

The Daily Transcript

A weakening lending environmentprompted Jeff Ellis to move his careeranother step forward.

The then banker and consultantwatched as both loan volume and loansize shrunk substantially and rapidly.

Underwriter demand for professionaland credentialed business appraisersticked up. Ellis remembers one of hisglobal clients trimming staff while tryingto recruit Ellis as an appraiser, which isEllis’ longtime specialty and passion.

For Ellis, it was time to finally bring

his plan of many years to fruition: tofocus solely on identifying the true valueof businesses.

“It became very evident that this wasthe way to go,” Ellis said in a recent inter-view. “It came to me. I didn’t come to it.”

Ellis founded IInntteerrnnaattiioonnaall AApppprraaiissaallSSeerrvviicceess, funneling his 20 years of expe-rience in valuation and appraisal as asenior lender into a La Jolla businessdesigned to serve the local finance andsmall business community.

Ellis’ clients consist of bankers,accountants and attorneys, who connectEllis with owners needing to know the

true value of their business and equip-ment.

For business owners like RichardFarace, who founded San Diego at-home tutoring service DDooccttrriinnaaTTuuttoorriinngg, Ellis played a crucial role inhelping Farace secure bank financing.

“He was a great communicator andreally spelled everything out for me,” saidFarace, who plans to ask for Ellis’ help invaluing a nonprofit he works with.“There was no guesswork on my part.”

Others need Ellis’ appraisal serviceswhen they are planning for retirement,buying or selling their business, divvyingup assets in a divorce, filing for bank-ruptcy, or placating the InternalRevenue Service, among other reasons.

Ellis analyzes the current market con-ditions, a business’ history and its poten-tial, which usually comprises the major-ity of its value, he said. He reviews finan-cial statements, interviews managementand employees, examines facilities andequipment, and factors in the industryand market risks.

He often works 12-hour days andweekends to accommodate his cus-tomers’ schedules or to incorporate dis-cretion into the valuation process.

“It’s not uncommon for me to be

under a truck at two o’clock in the morn-ing, getting a VIN (vehicle identificationnumber),” Ellis said.

In short, valuation and appraisal istedious work — and a lot of pavementpounding — but Ellis is having the timeof his life.

“I absolutely love what we do,” he said,his face lighting up with a smile. “It’s anongoing, fluid situation ... we’re con-

Jeff Ellis

See Ellis on 14


Awards luncheon honors small businesses, ownersSource: San Diego Regional Chamber of Commerce

On May 27, the San Diego RegionalChamber of Commerce will partnerwith the U.S. Small BusinessAdministration and ESET to celebratethe accomplishments of small andmicro businesses at the 2009 SmallBusiness Awards Luncheon &Business Exchange.

Award winners will be announcedlive at the luncheon.

“We received a record number ofaward applications,” said chamberPresident and CEO Ruben Barrales.“This is great news because our win-ners tend to have a bright future. Ourtitle sponsor, ESET, was recognized asour 2005 Emerging Business of theYear, and last month they won a covet-ed CNET Editors’ Choice award.”

The awards luncheon will take placeat the Town and Country Resort &Convention Center, 500 Hotel CircleN., from 11 a.m. until 1:30 p.m. Priorto the luncheon, companies can regis-ter to meet up to 100 prospects in anexciting, fast paced, speed networkingevent called the Business Exchange.All paid participants in the BusinessExchange receive two free tickets tothe luncheon, valued at $150.

“The Business Exchange is myfavorite chamber event because wehelp small and micro businesses makemore connections in two hours thanthey would normally make inmonths,” said Doug Holman, chambervice president of membership. “Theseare businesses that don’t typicallyhave a major marketing budget, whichmakes this surefire visibility impor-tant, particularly in a slower econo-my.”

Both the chamber and the SanDiego District Office of the U.S. Small

Business Administration will presentawards for outstanding achievement.SBA awards are outlined separatelythroughout this supplement.

The San Diego Regional Chamberof Commerce will present awards forthe following categories:

OOuuttssttaannddiinngg EEmmeerrggiinngg BBuussiinneessss ooff tthhee YYeeaarr

Criteria:• History as an established business

confirmed by revenue growth andprofitability or demonstrated stayingpower through adversity.

• Must be a San Diego County-based business.

MMoosstt IInnnnoovvaattiivvee MMaarrkkeettiinnggCCaammppaaiiggnn//CCoonncceepptt

Criteria:• Creative concept, including rele-

vance to the target audience.• Execution of solutions to market-

ing and communications challenges.

EExxcceelllleennccee iinn CCuussttoommeerr SSeerrvviicceeCriteria:• Educated sales and services rep-

resentatives who are approachable,available and willing to help.

• High-quality service from begin-ning to end; the amount and quality ofassistance given to customers.

• Responsiveness and follow-through once a problem has beenidentified; dealing with situations ofadversity from customers.

MMoosstt IInnnnoovvaattiivvee PPrroodduucctt oorr SSeerrvviicceeCriteria:• Innovation in technology, inven-

tion, product or service.• Considered creative and found its

success in the marketplace.

• Acknowledgement by peers ormedia for innovation.

EEnnvviirroonnmmeennttaall AAccttiioonnCriteria:• Eligible candidates will have

taken actions to improve or protectthe environment. Examples include,but are not limited to the following:recycling programs/initiatives, fuelconservation or alternatives, energyconservation practices, environmen-tally friendly products, environmentalawareness/education, water conser-vation measures, solar/wind power,etc.

• Effort and actions result in a sig-nificant and measurable environmen-

The San Diego Regional Chamber ofCommerce Award Finalists

CCuussttoommeerr SSeerrvviicceeMicro

Az U WishLaw Offices of Ian Topf

Marketing Pro Consulting (Send Out Cards)

Medical Minds HealthcareCommunications

San Diego Law FirmUnited States Karate Academy

SmallPar Escrow Corp.

Peartrees Catering Inc.TGG Capital

The Exit Light Co. Inc.Wilding WallbedsWisdom Matrix

EEmmeerrggiinngg BBuussiinneessssMicro

Camp Run-A-MuttCrystal Pyramid Inc.

San Diego Event DécorSan Diego Law FirmWe Clean San Diego

Workplace Learning & PerformanceSmall

Always Best Care Senior ServicesBackyard X-Scapes

Bumperdoc Inc.Cleanology

Goldfield Stagesandiego.com

EEnnvviirroonnmmeennttaall AAccttiioonnMicro

Ecowash MobileGlobal Synteck

Hacienda de las Rosas WineryRoyal Impex

Service Master Professional Cleaning Services

Technology Training Foundation of America

SmallBackyard X-Scapes

Bumperdoc Inc.Cleanology

Independent Energy SolutionsVisual Innovations Group

International Inc.

MMaarrkkeettiinngg CCaammppaaiiggnnMicro

A2Z Logos Inc.Bop Design

Knoefler EnterprisesLev Promotions

Massage MasteryWellstrong Fitness Inc

SmallAArrow Advertising

Abacus Data Systems Inc.Bumperdoc Inc.

Component SurfacesHotelplanner.com

Visual Innovations Group Intl Inc.

PPrroodduucctt oorr SSeerrvviicceeMicro

A2Z Logos Inc.Bluedominoes Inc.

CCS Inc.RMJ TechnologiesSplitScreen Media

Technology Training Foundation ofAmerica

SmallAbacus Data Systems Inc.

Component SurfacesIntrax International Institute, San Diego

MojoPagesThe Children’s Initiative

Transworld Systems

tal benefit.

Special thanks to our sponsors:TTiittllee ssppoonnssoorr:: ESETAAwwaarrdd SSppoonnssoorrss:: AT&T, Barney &

Barney, and Blue Shield of CaliforniaCCoorrppoorraattee SSppoonnssoorrss:: Union Bank of

California, Town and Country Resort& Convention Center

BBuussiinneessss EExxcchhaannggee PPrreesseennttiinnggSSppoonnssoorr:: Chevron

MMeeddiiaa SSppoonnssoorr:: The Daily Tran-script

CCoommmmuunniiccaattiioonnss SSppoonnssoorr:: Nuffer,Smith, Tucker Inc.

For more information, visit thechamber Web site at sdchamber.org.

SSoouurrccee CCooddee:: 2200009900552211ccrree


U.S. Small BusinessAdministrationAward Winners

SSmmaallll BBuussiinneessss PPeerrssoonn ooff tthhee YYeeaarrChristine McDannell, Cleanology Inc.

EEnnttrreepprreenneeuurriiaall SSuucccceessss AAwwaarrddHany Girgis, SGIS High Impact

Solutions

YYoouunngg EEnnttrreepprreenneeuurr ooff tthhee YYeeaarrSwarna Srinivas, KESDEE Inc.

SSmmaallll BBuussiinneessss EExxppoorrtteerr ooff tthhee YYeeaarrKen Kuang, Torrey Hills

Technologies LLC

WWoommeenn--OOwwnneedd SSmmaallll BBuussiinneessss ooff tthhee YYeeaarr

Judith Seid, Blue Summit FinancialGroup Inc.

MMiinnoorriittyy--OOwwnneedd SSmmaallll BBuussiinneessss ooff tthhee YYeeaarr

Gale Walker, Children of theRainbow Inc.

VVeetteerraann--OOwwnneedd SSmmaallll BBuussiinneessss ooff tthhee YYeeaarr

Michael Patton, Pothos Inc.

FFaammiillyy--OOwwnneedd SSmmaallll BBuussiinneessss ooff tthhee YYeeaarr

Eric Barajas and Joseph Barajas, NEIContracting & Engineering Inc.

FFiinnaanncciiaall SSeerrvviicceess CChhaammppiioonn ooff tthhee YYeeaarr

Steven Leibold, San Diego BusinessAdvisors

MMiinnoorriittyy SSmmaallll BBuussiinneessss CChhaammppiioonn ooff tthhee YYeeaarr

Mark Oakes, Transformation Quest

VVeetteerraann BBuussiinneessss CChhaammppiioonn ooff tthhee YYeeaarr

Corrina Brennan, Family MemberEmployment Assistance Program

SSmmaallll BBuussiinneessss JJoouurrnnaalliisstt ooff tthhee YYeeaarrDitas Yamane, D. R. Marketing &

Promotions

SSBBAA CCoommmmuunniittyy SSeerrvviiccee AAwwaarrddACCION San Diego

GGeeoorrggee CChhaannddlleerr LLeeaaddeerrsshhiipp AAwwaarrddKurt Chilcott, CDC Small Business

Finance

SSmmaallll BBuussiinneessss LLeennddeerr ooff tthhee YYeeaarr ((550044 llooaannss))

Kurt Chilcott, CDC Small BusinessFinance

SSmmaallll BBuussiinneessss LLeennddeerr ooff tthhee YYeeaarr ((77((aa)) llooaannss))

SBA Division, U.S. Bank

NNaattiioonnaall SSCCOORREE CChhaapptteerr ooff tthhee YYeeaarrSan Diego SCORE – Chapter 140

Profiles of SBA award winnersSSmmaallll BBuussiinneessss PPeerrssoonn ooff tthhee YYeeaarr

Christine McDannellCleanology Inc.

Christine McDannell, president andfounder of Cleanology Inc., had knownfor years that she wanted to be a busi-ness owner. In 2003, at the age of 23,McDannell started her business, afterfive years working in property manage-ment and as a Realtor. She saw a needfor a truly unique cleaning companythat not only cares about makinghomes look good, but also making themhealthy by properly sanitizing and dis-infecting all surfaces and that demon-strates professionalism in the industry.

McDannell started out with a fewpieces of equipment charged to a creditcard and two employees who trainedher how to clean. In just five years shehas grown Cleanology into the largestcleaning company in downtown SanDiego, with six crews, 15 employees andnearly a half million dollars in sales in ahighly competitive market.

Cleanology is a “green” companyusing nontoxic supplies and equip-ment, creating a nontoxic environmentfor both clients and employees. Thecompany also recycles everything possi-ble, use micro-fiber towels instead ofpaper towels for dusting, mirrors andwindows. It uses a shuttle van to trans-port its Cleanologists around down-town.

Cleanology is active in industry-relat-ed organizations whose goals are simi-lar to theirs, such as ISSA(International Sanitary SupplyAssociation) and ARCSI (Associationof Residential Cleaning ServicesInternational), and is a member of theSan Diego Better Business Bureau. Inaddition, McDannell is a member of theCleaning for a Reason Foundation, soCleanology cleans homes for cancerpatients at no charge each month.

McDannell has worked hard to buildher business, using passionate determi-nation, an optimistic attitude and awillingness to learn to create a brightfuture for herself and her employees.She is a true entrepreneur.

EEnnttrreepprreenneeuurriiaall SSuucccceessss AAwwaarrddHany Girgis

SGISCEO Hany Girgis founded SGIS

from his garage in June 2002, and suc-cessfully built a company that helpsdrive unprecedented advances on land,at sea and in space — from ensuring thesecurity of top-secret, governmentinformation and developing applica-tions for the Intelligence and Defensecommunities to training some of ournation’s top government officials. SGIScurrently has more than 850 employeesand 14 offices nationwide, with corpo-

rate headquarters located in San Diego.Girgis forecasted an upsurge in

defense, intelligence and homelandsecurity spending after the tragic eventsof Sept. 11, 2001. Organizations andfederal agencies required more servicesto keep up with the war on terrorismand government budgets increased,providing an opportunity for a new,fresh company eager to participate inthe fight to defend our nation. In turn,he turned the direction of the businessto government contracting.

When Girgis began SGIS, he knew

the company would compete withlarge, well-established competitors. Heidentified the opportunity to competeas a small business. SGIS soon becamean 8(a) certified, Small DisadvantagedBusiness, which provided many busi-ness opportunities. This gave SGISnumerous chances to bid on a variety ofgovernment contracting opportunitiesand also enabled the company toincrease and enhance its presence with-in the market. Due to the tremendous

See Profiles on 8


Small Business Administration 7(A)LendersListed by Amount of Approved SBA Gross Loans in San Diego & Imperial Counties (January-December 2008)

Lender Name

PhoneURL

SBA Approved Gross Loans in 2008 Approved SBA Loans in 2008 Local SBA Contact Year Established

1Wells Fargo Bank

(858) 622-6701www.wellsfargo.com

$25,552,900 $18,394,470 Steve Doss, (760) 432-5319,[email protected]

1852

2Pacific Capital Bank N.A.

(619) 234-5655www.pcbancorp.com

$20,026,500 $14,995,507 Joe Kennedy, (619) [email protected]

1904

3Temecula Valley Bank

(951) 694-9940www.temvalbank.com

$19,840,300 $14,593,215 Andy Zimbalist, (760) [email protected]

1996

4U.S. Bank

(619) 232-6213, (858) 536-3448 (SBA)www.usbank.com

$12,597,000 $8,911,480 Tim McGoff, (888) SBS-EZ4U (722-3948) 1929

5La Jolla Bank S.A.

(858) 756-7888www.ljbank.com

$12,580,000 $9,182,750 Jon Hansen, (760) [email protected]

1985

6Pacific Western Bank

(619) 744-7200www.pacificwesternbank.com

$8,304,300 $6,228,225 Kurt Priewe, (619) [email protected]

1999

7CIT Small Business Lending Corp.

(858) 484-1897www.smallbizlending.com

$6,291,000 $4,718,250 Keith McLaurin, (858) [email protected]

1908

8Seacoast Commerce Bank

(619) 476-7776www.seacoastcommercebank.com

$5,818,500 $4,391,195 Robert DeVries, (619) [email protected]

2003

9Pacific Coast National Bank

(760) 635-5636www.pacificcoastnationalbank.com

$5,604,800 $4,199,850 Abel Tellez, (760) 635-5636. ext. [email protected]

2005

10California Bank & Trust

(858) 623-3128www.calbanktrust.com

$5,584,300 $3,858,725 Ron Perry, (858) [email protected]

1972

11Silvergate Bank

(858) 362-6300www.silvergatebank.com

$5,255,000 $3,992,650 Rhonda Rindone, (858) [email protected]

1988

12Neighborhood National Bank

(619) 239-3360www.mynnb.com

$5,168,118 $3,771,073 Patti Staples, (619) [email protected]

1997

13First Pacific Bank of California

(858) 875-2000www.1stpacbank.com

$2,806,000 $2,054,000 Rob Pedersen, (858) [email protected]

2000

14Wachovia Bank N.A.

(858) 459-4217www.wachovia.com

$2,641,400 $1,981,050 Jerri Klein, (949) [email protected]

1994

15Banco Popular North America

(619) 409-4160www.bancopopular.com

$2,090,700 $1,510,800 Sharon Jones, (714) [email protected]

1999

16City National Bank

(619) 238-7460www.cnb.com

$1,979,300 $1,463,225 Robert Flores, (213) [email protected]

1954

Continued on next page


Data Source: Small Business Association’s San Diego District office. Listed by Amount of SBA Approved Gross Loans in San Diego and Imperial Counties (January-December 2008) . This is a partial list. Amore complete listing can be found at sourcebook.sddt.com. N/A: Not Applicable, n/a: not available, wnd: would not disclose. It is not the intent of this list to endorse its participants, nor to imply that thecompany’s size or numerical rank indicates its quality or service. We reserve the right to edit listings or to exclude a listing due to insufficient information. Compiled by Robin Scott, [email protected] updated 5/2009.

Lender Name

PhoneURL

SBA Approved Gross Loans in 2008 Approved SBA Loans in 2008 Local SBA Contact Year Established

171st Centennial Bank

(888) 673-3236www.1stcent.com

$1,900,000 $1,425,000 n/a 1990

18Discovery Bank

(760) 759-2265www.discovery-bank.com

$1,746,500 $1,285,925 Wanda Allen, (760) 736-8900,[email protected]

2001

19First National Bank of Southern California

(760) 471-1051www.fnbsocal.com

$1,734,300 $1,321,655 Mark Mashouri, (760) 481-7236,[email protected]

1964

20Borrego Springs Bank

(619) 668-5159www.borregospringsbank.com

$1,683,000 $1,395,750 Stephanie Toomey, (619) 668-5150 ext.202, [email protected]

1982

21Comerica Bank

(619) 687-5300www.comerica.com

$1,173,000 $879,750 Nancy Russell, (714) 424-3826, [email protected]

1849

22First Business Bank

(858) 847-4780www.fbbank.com

$1,099,000 $824,250 Nathan Rogge, (858) 546-4392,[email protected]

2001

23San Diego National Bank

(619) 231-4989www.sdnb.com

$983,400 $687,550 (800) 685-7362, [email protected] 1981

24Bank of America N.A.

(619) 515-7575www.bankamerica.com

$646,700 $346,100 Patricia King, (619) 515-5964,[email protected]

1904

25Bank of Escondido

(760) 520-0400www.bankescondido.com

$629,000 $434,250 Helen Johnson, (760) 520-0421,[email protected]

2003

26JP Morgan Chase & Co.

(858) 554-1900www.jpmorganchase.com

$624,000 $312,000 Deidra Bentley, (619) 615-0601,[email protected]

1799

27Security Business Bank of San Diego

(619) 231-8500www.securitybusinessbank.com

$472,000 $383,800 Thomas Welch, (619) 794-2830,[email protected]

2002

28Union Bank of California N.A.

(800) 238-4486www.uboc.com

$350,000 $175,000 Terry Butcher, (805) 577-5003, [email protected]

1883

29Bank of the West

(619) 234-3511www.bankofthewest.com

$293,000 $219,750 Denise DiBello, (619) 462-4460,[email protected]

1874

30North Island Credit Union

(619) 656-6525www.myisland.com

$250,000 $187,500 (800) 293-6494 1940

31Center Bank

(858) 874-3333www.calcenterbank.com

$184,000 $138,000 Jason Kim, (213) 637-9622, [email protected]

1986

32RaboBank

(760) 352-5000www.rabobankamerica.com

$180,000 $90,000 Kay Fischer, (760) 337-3233,[email protected]

1912

33First Bank

(619) 515-3103www.firstbanks.com

$165,000 $82,500 Lee Fenn, (619) 515-2250,[email protected]

1910

34Citibank N.A.

(619) 239-3457www.citibank.com

$145,000 $72,500 Donny Lam, (626) 260-5952,[email protected]

1812

Small Business Administration 7(A)LendersListed by Amount of Approved SBA Gross Loans in San Diego & Imperial Counties (January-December 2008)


SMALL BUSINESS

CONTRACTORS OF THE YEAR

FFaaiitthh BBaauuttiissttaaPresident, SDAS Promo Inc.

For their friendly, helpful serviceand prompt delivery of SBA’s awardtrophies.

Awarded by: U.S. Small BusinessAdministration - San Diego DistrictOffice

SMALL BUSINESS SUB-CONTRACTORS OF THE YEAR

BBiillll CCaannttiilllloonnGeneral Manager, Yowell

InternationalFor partnering NASSCO as an

international and domestic freightforwarder, with employees willing to

take complete ownership ofNASSCO’s products and look forways to improve the handling of itsproducts safely, and for supportingNASSCO’s in-yard delivery dateswith the TAKE & PC 1 programs.

Awarded by: General Dynamics,NASSCO

BBeenn GGaarrrriiddooPresident, MetalMaster Inc.

For excellent quality for both pro-duction and development require-ments, as a preferred supplier ofmachining, sheet metal and weldingfor Raytheon Integrated DefenseSystems. MetalMaster Inc. has beena valued team member in support-ing multiple programs for severalyears.

Awarded by: Raytheon IntegratedDefense Systems

SSoouurrccee CCooddee:: 2200009900552211ccrrgg

efforts of Girgis and his team, SGIS hastransitioned from a small startup to amultimillion-dollar company poised tocompete with other medium and large-sized defense contractors.

YYoouunngg EEnnttrreepprreenneeuurr ooff tthhee YYeeaarrSwarna J. Srinivas

KESDEE Inc.Twenty-six-year old Swarna Srinivas,

president of KESDEE Inc., is a Harvardgraduate. Her first-hand experience ofthe impact of technology on educationas a Harvard student and fascinationwith forces of globalization have beeninstrumental in propelling KESDEE, ahigh-tech financial eLearning compa-ny, toward a high growth rate of 50 per-cent annually over the past three years.

KESDEE provides innovative andinteractive eLearning solutions to glob-al finance professionals. Its off-the-shelf eLearning solutions consist of 700accredited courses (on key financialtopics) spanning about 2,100 hours ofeLearning. Global from day one, it isincorporated in California, headquar-tered in San Diego, has a state-of-the-art development centre in Bangalore,India, a hosting site in Santa Clara,Calif., and a Spanish and regionaliza-tion center in Mexico. KESDEE’s clien-

tele, among others, notably comprisethe Federal Reserve Board, CitiGroup,Standard Chartered Bank, JP MorganChase, SunGard, Indian Bank,Maybank, and BearingPoint.

SSmmaallll BBuussiinneessss EExxppoorrtteerr ooff tthhee YYeeaarrKen Kuang

Torrey Hills Technologies LLCAfter a successful career as senior

process manager at Kyocera AmericaInc., Ken Kuang followed his entrepre-neurial dream and started his owncompany in 2004. Now president andfounder of Torrey Hills TechnologiesLLC, Kuang has grown his business tobe a competitive cost leader in the sup-ply of quality microelectronics packag-ing components, such as copper tung-sten heat sinks, to major U.S. and inter-national manufacturers. Not satisfiedwith the limitation of a single and high-ly specialized market, Kuang also start-ed the sale of large-scale furnace equip-ment for both electronics and thebooming solar energy industry.

The mission Kuang set for his com-pany is to help a fast-growing numberof customers achieve higher profitabili-ty by the provision of innovative prod-ucts and services. The company is nowshipping worldwide to more than 30countries.

ProfilesContinued from Page 5 WWoommaann--OOwwnneedd SSmmaallll

BBuussiinneessss ooff tthhee YYeeaarrJudith L. Seid

Blue Summit Financial Group Inc.In 1994, founder Judith Seid

launched her business as Seid Financialafter training with Jack Brill, a leadinginnovator in the socially responsibleinvestment industry. In the early years,Seid relied solely on referrals to growthe business. She gained a reputationfor offering a holistic approach to finan-cial and life-planning and excellent cus-tomer service. In 2005, Seid changedthe business name to Blue SummitFinancial Group Inc. to better reflect itsaddition of junior advisers, staff andclient services.

Blue Summit is the leading firmoffering socially responsible investingin San Diego. A full-service investingand financial planning group, it offerstraditional wealth management servic-es, as well as values-based, sustainableinvestment portfolios. Its mission is to“provide peace of mind through disci-plined financial planning and sociallyresponsible investment management.”Blue Summit’s clients enjoy clarity andconfidence knowing they have a soundfinancial strategy and an experiencedteam working to ensure their life goalsare being met while helping to create abetter world.

MMiinnoorriittyy--OOwwnneedd SSmmaallll BBuussiinneessss ooff tthhee YYeeaarr

Gale L. WalkerChildren of the Rainbow Inc.

Children of the Rainbow is a creativ-ity-based, state-of-the-art early careand education company founded in1991 by Gale Walker. She created

Children of the Rainbow to address thechronic need in her community foraffordable early care and educationwhile providing a safe and enrichingenvironment. Her facilities are espe-cially unique because they are locatedin San Diego’s oldest, most culturallydiverse and economically disadvan-taged areas throughout San Diego(Logan Heights, Stockton and GrantHill neighborhoods). Walker andChildren of the Rainbow have receivednumerous awards for excellence duringthe past decade for business and com-munity service in these areas.

Today, Children of the Rainbowserves 1,400 children across 13 sites.Two sites are programs with theDepartment of Education, while 11 sitesare Head Start programs.

Walker is committed to creatingopportunities for success and sharingwith others the lessons she’s learnedabout hope, optimism and hard work.In addition to running her business, shehas recently mobilized her communityand formed the Bronze TriangleCommunity Development Corp., cap-turing the attention and imagination ofSan Diego’s building and developmentindustry and bringing in developers,builders and funders to work with resi-dents to restore and link the BronzeTriangle to San Diego’s bright shiningfuture.

VVeetteerraann--OOwwnneedd SSmmaallll BBuussiinneessss ooff tthhee YYeeaarr

Michael PattonPothos Inc.

Michael Patton, president and

See Profiles on 9


Bluwater Crossing eliminatescommute, increases quality of life

Trading hours of commuting for abrisk walk down a staircase. Swappingthe boardroom for beach sand.Converging a career with comfort. Tosome, this sounds like doing the impos-sible. To the developers of BluwaterCrossing, it’s just business as usual.

“We wanted to create a mixed-usecommunity that was as good for livingas it was for business,” said BradPerozzi, managing director of develop-er Trammel Crow Residential.“The two don’t have to be mutuallyexclusive.”

Bluwater Crossing, occupying aprime location just a short sprint awayfrom the ocean in Carlsbad, comprises66 residential homes. Fifty-one of theseare live/work lofts with ground-levelworkspace and two stories of livingspace on the second and third floors.The remaining units are traditionaltown lofts located above the businessesthat create the community’s retail dis-trict.

The unique live/work loft conceptensures greater efficiency for business-es and helps increase individual pro-ductivity by eliminating time-wastingcommutes. With approximately 1,000square feet of ground-floor workspace,the live/work lofts are designed specif-ically for boutique storefronts and smallconsulting firms, but Perozzi notes theycan accommodate a multitude of busi-ness types.

“These workspaces are great foranyone from artists to accountants,” hesaid. “The storefronts are flexibleenough to accommodate just aboutany enterprise. The one unifying themeis the kind of people who choose to livehere — progressive, forward-thinkingpeople who know that you have to runyour business, not the other wayaround.”

In keeping with its progressivetheme, the community has beendesigned with sustainable elementssuch as walkable paths, bike-friendlyamenities, water-saving irrigationthroughout the public landscaping,

Submitted by Bluwater Crossing

Bluwater Crossing featuressustainable elements such aswalkable paths, bike-friendlyamenities, water-saving irri-gation and close proximity topublic transportation.

and close proximity to the Coaster forefficient public transportation into thecity. A 21,600-square-foot retail andcommercial development will ensurethat essential services are all withinwalking distance. Most notably, theentire community was sited so that res-idents could open their windows andtake advantage of cool ocean breezes,thus saving on utility bills.

Elegant interior finishes round outthe community’s modern flair, withhighlights including Savoline cabinetry,Viking appliances and Junckers hard-wood flooring. Outside, the placemak-ing and design creates a neighbor-hood with the feeling of a small urbanvillage.

“Our residents are successful busi-ness people,” Perozzi said. “They’veworked hard. We like to think thelifestyle we offer at Bluwater Crossing isa way to find a better quality of life —and a greater level of success.”

And with town lofts and live/worklofts at Bluwater Crossing now avail-able, that greater level of success couldbe closer than many business peoplethink.

CEO, started Pothos Inc., a full-serv-ice, strategic meeting management,incentive and corporate travel com-pany, in 2002. Patton is a U.S. Navyveteran who was twice decoratedwith earned achievements: Military

Order of World Wars and EnlistedSurface Warfare Specialist. Patton isalso a more than 25-year veteran ofhospitality and travel services andhas a CMM (Certification in MeetingManagement), which places him inthe top 1,000 meeting and travel pro-

ProfilesContinued from Page 8 fessionals in the world. Patton has

selected a small, very experiencedteam that feels as passionately as hedoes about providing exceptionalservice to their customers.Combined, the team speaks sevenlanguages and has been to 42 coun-tries, on six continents.

Headquartered in San Diego,Pothos provides an extraordinarylevel of service. By using cutting-edgetechnology and resources, it com-petes with much larger companies.Over the years, Pothos has experi-enced constant growth and has beenable to stablize and consolidate itsposition in a very competitive mar-ket. The company has done this byestablishing a strong network ofstrategic affiliations throughout theUnited States and many countriesacross the globe. These relationshipsallow Pothos to manage and operatecorporate events, travel and logisticsworldwide.

Customers range from state and fed-eral government agencies to exclusiveVIP clients and corporate businessesincluding SciQuest Inc., ScientificGames, Oracle, Department ofVeterans Affairs and CaliforniaMotorcycle Safety Program, to name afew.

FFaammiillyy--OOwwnneedd SSmmaallll BBuussiinneessss ooff tthhee YYeeaarr

Eric and Joseph BarajasNEI Contracting & Engineering Inc.Joseph Barajas started Nova Electric

Inc. (now NEI Contracting &Engineering Inc.) in 1992, as an electri-cal contracting company primarily pro-viding services to government entitieson prime bonded electrical construc-tion work. In 1993, his son Eric joinedhim, initially serving as the company’ssecretary/vice president and chief esti-mator. When Joseph retired in 2004,Eric took over full ownership and man-agement of the business.

Under Eric’s management, NovaElectric was approved as an SBA 8(a)contractor. To accommodate opera-tional growth, the company took stepsto expand to other fields of construction— particularly building repairs andimprovements. As a result of thisexpansion, Eric changed the company’sname to NEI Contracting andEngineering Inc.

During the past several years, NEIhas been granted and has completedprojects for the Department of theNavy and the Department of the Army,and is currently working on projects for

See Profiles on 12


SBA 504 LendersListed by Amount of Third-Party Lender Loans Awarded in San Diego & Imperial Counties (January-December 2008)

Lender Name

PhoneURL

3rd-Party Loan AmountApproved Gross 504

LoanNumber of 504 Loans Local SBA Contact Year Established

1Wells Fargo Bank

(858) 622-6701www.wellsfargo.com

$32,162,736 $23,844,000 27Steve Doss, (760) [email protected]

1852

2California Bank & Trust

(858) 623-3128www.calbanktrust.com

$15,101,628 $11,205,000 20Ron Perry, (858) [email protected]

1972

3Bank of America N.A.

(619) 515-7575www.bankamerica.com

$11,505,444 $9,579,000 15Patricia King, (619) [email protected]

1904

4Torrey Pines Bank

(619) 233-2500www.torreypinesbank.com

$8,375,900 $7,731,000 13Steve Black, (858) [email protected]

2003

5First Pacific Bank of California

(858) 875-2000www.1stpacbank.com

$7,649,500 $4,853,000 5Rob Pederson, (858) [email protected]

2000

6Union Bank of California N.A.

(800) 238-4486www.uboc.com

$4,847,500 $3,975,000 4Terry Butcher, (805) [email protected]

1883

7First National Bank of Southern

California

(760) 471-1051www.fnbsocal.com

$4,288,000 $2,621,000 2Mark Mashouri, (760) [email protected]

1964

8IronStone Bank S.A.

(858) 332-3922www.ironstonebank.com

$3,837,000 $3,206,000 6 n/a 1997

9San Diego National Bank

(619) 231-4989www.sdnb.com

$3,601,000 $2,204,000 4 (800) 685-7362, [email protected] 1981

10Pacific Western Bank

(619) 744-7200www.pacificwesternbank.com

$3,478,100 $2,744,000 3Kurt Priewe, (619) [email protected]

1999

11Bank of the West

(619) 234-3511www.bankofthewest.com

$3,304,393 $2,633,000 6Denise DiBello, (619) [email protected]

1874

12Citibank N.A.

(619) 239-3457www.citibank.com

$2,902,500 $1,051,000 3Donny Lam, (626) [email protected]

1812

13Temecula Valley Bank

(951) 694-9940www.temvalbank.com

$2,490,000 $1,528,000 1Andy Zimbalist, (760) [email protected]

1996

14Seacoast Commerce Bank

(619) 476-7776www.seacoastcommercebank.com

$2,474,632 $2,024,000 4Robert DeVries, (619) [email protected]

2003

Continued on next page


Data Source: Small Business Administration San Diego District. Listed by Amount of Third-Party Lender Loans Awarded in San Diego and Imperial Counties (January-December 2008). This is a partial list;a more complete listing can be found at sourcebook.sddt.com. N/A: Not Applicable, n/a: not available, wnd: would not disclose. It is not the intent of this list to endorse its participants, nor to imply that thecompany’s size or numerical rank indicates its quality or service. We reserve the right to edit listings or to exclude a listing due to insufficient information. Compiled by Robin Scott, [email protected] updated 5/2009.

Lender Name

PhoneURL

3rd-Party Loan AmountApproved Gross 504

LoanNumber of 504 Loans Local SBA Contact Year Established

15La Jolla Bank S.A.

(858) 756-7888www.ljbank.com

$2,140,000 $1,295,000 1Jon Hansen, (760) [email protected]

1985

16Pacific Coast National Bank

(760) 635-5636www.pacificcoastnationalbank.com

$2,045,941 $1,680,000 3Abel Tellez, (760) 635-5636 ext. [email protected]

2005

17First Business Bank

(858) 847-4780www.fbbank.com

$2,029,000 $1,660,000 1Nathan Rogge, (858) [email protected]

2001

18Security Business Bank of San Diego

(619) 231-8500www.securitybusinessbank.com

$1,692,500 $1,262,000 2Thomas Welch, (619) [email protected]

2002

19Regents Bank

(858) 729-7700www.regentsbank.com

$976,851 $800,000 1Barbara Hunter, (858) [email protected]

2001

20Discovery Bank

(760) 759-2265www.discovery-bank.com

$832,000 $510,000 1Wanda Allen, (760) [email protected]

2001

21Neighborhood National Bank

(619) 239-3360www.mynnb.com

$641,000 $338,000 1Patti Staples, (619) [email protected]

1997

22Hanmi Bank

(858) 467-4800www.hanmi.com

$595,000 $489,000 0Young-Hoon Oh, (858) [email protected]

2000

23Sunrise Bank of San Diego

(858) 625-9050www.sunrisebanksd.com

$508,400 $418,000 1Randy Cundiff, (858) [email protected]

2001

24California Community Bank

(760) 888-1000www.calcommunitybank.com

$438,500 $509,000 2Robert Marshall, (760) [email protected]

2003

25Silvergate Bank

(858) 362-6300www.silvergatebank.com

$425,000 $307,000 1Rhonda Rindone, (858) [email protected]

1988

26Bank of Escondido

(760) 520-0400www.bankescondido.com

$420,000 $345,000 1Helen Johnson, (760) [email protected]

2003

27North Island Credit Union

(619) 656-6525www.myisland.com

$337,500 $279,000 2 n/a 1940

28RaboBank

(760) 352-5000www.rabobankamerica.com

$150,000 $124,000 1Kay Fischer, (760) [email protected]

1912

SBA 504 LendersListed by Amount of Third-Party Lender Loans Awarded in San Diego & Imperial Counties (January-December 2008)


‘Crafty’ banking solutions sustain small businessesPaula Mello, CEO of Crafty

Productions Inc., needed to find away to fund her growing business,which designs and manufacturescraft, jewelry and gift products fornational retailers from Michaels toWal-Mart. The company’s celebrateddesign talent helped Mello to distin-guish her business from other bud-ding craft houses and land a bankingpartner that was poised to take thecompany to the next level.

Managing business cyclesA women-owned operation based

in San Marcos, Crafty relies onSecurity Business Bank to createcustomized financing vehicles to sup-port the company’s seasonal sellingcycles.

“We sell mostly dollar items in highvolume,” said Mello, who has grownCrafty into a multimillion-dollar com-pany since its founding almost 20years ago.

“Because we manufacture and shipthe majority of our craft and gift itemsin advance of Halloween,Thanksgiving and Christmas, weneeded a flexible financing arrange-ment that would allow us to managethe seasonality of our business.”

Creative loan facilitiesCompanies that grapple with peaks

and troughs in terms of selling cyclesare encouraged to look into special-ized debt tools to help manage theircredit as well as their cash.

In Crafty’s case, Security BusinessBank structured an asset-based line ofcredit that incorporated a bulge facil-ity during the company’s busy sellingseason or bulge period.

“This customized financing instru-ment increases our credit line fromMay through August, when mostcrafters want our products, allowingus to manage the timing differencebetween payables and receivables.

Our credit line then decreases afterAugust once our items are shipped.So our borrowing is based exactly onthe nuances of our particular businesscycle,” Mello explained.

Entrepreneurs who understand howtheir credit and cash cycles work arebetter able to make efficient financialdecisions. Ideally, cyclical operationswill wrap a financing structurearound the individual business and itsoperation.

Supporting growth“Security Business Bank has been

adaptive to our needs as a growth-oriented company,” Mello said. “Thebank has increased our line of creditover the years as our customer basehas expanded and our business hasmatured.

As an organization focused on cre-ativity, we value the bank’s ability tobring a variety of financing solutionsto the table. A one-size-fits-allapproach would not have worked aswell for us,” she said.

Security Business Bank evaluates itsclient businesses on a regular basisand makes recommendations on howto improve or modify financingarrangements to meet a set of pre-determined business goals.

“It’s clear that the bank believes inour business and its potential,” Mellosaid. “This is demonstrated not onlythrough increased funding and cus-tomized solutions, but through greatcustomer service day to day.”

Savvy entrepreneurs will check inwith their banking partners often tomake sure they have the financialtools in place to help them stay com-petitive. An efficient and up-to-datefinancial structure will help growth-centered companies enter new mar-kets, introduce new product lines,diversify a customer base and invest inthe infrastructure required to ensurethe long-term health of the business.

Submitted by Melissa Dennis for Security Business Bank

the Department of the Airforce, theCoast Guard and Department of theNavy Camp Pendleton. Additionally,NEI has grown from 10 employees in2004 to 30 permanent employees, withsupplemental temporary workers on anas-needed basis.

The company has reaped unprece-dented success since its establishmentas a result of father and son workingtogether to create a firm foundation

for the growth of the business.

FFiinnaanncciiaall SSeerrvviicceess SSmmaallll BBuussiinneessssCChhaammppiioonn ooff tthhee YYeeaarr

Steven C. LeiboldSan Diego Business Advisors

Steven Leibold is president of SanDiego Business Advisors, a full-servicebookkeeping and tax service that pro-vides individuals and small businessowners with the necessary tax guidanceand expertise to help them best navi-

ProfilesContinued from Page 9 gate complex tax laws and accounting

rules. He is an active member of theNational Association of EnrolledAgents, the California Society ofEnrolled Agents, the AmericanInstitute of Professional Bookkeepers,and the National Society ofAccountants.

Organizations such as SCORE, theSmall Business Development Centers,the Women’s Business Center and morerely on Leibold’s contacts, expertise andadvocacy to assist their clients.Recently, he and his professional col-leagues developed the content for aSCORE workshop that offers insightfulbusiness tips to deal with these roughfinancial times. He also conducts work-shops through the educational out-reach programs offered by the IRS.Leibold has shown his commitment tosmall and emerging businesses and hasproven himself a talented businessdevelopment expert.

MMiinnoorriittyy SSmmaallll BBuussiinneessss CChhaammppiioonn ooff tthhee YYeeaarr

Mark R. OakesTransformation Quest

Mark Oakes is the founder and pres-ident of Transformation Quest, whichspecializes in T.I.M.E. management:Target, Implement, Monitor and Enjoylife, offering expert programming andtraining in group, Web class, and one-on-one coaching to help business own-ers get more time for life away frombusiness by helping them “replacethemselves with a system.”

Oakes is also a core business consult-ant for Small Business DevelopmentCenters (SBDC) in Chula Vista andOceanside. He has assisted and advisedmore than 1,000 small to medium-sized businesses with everything fromstartup to heavy production overloadresolution, through 1-on-1 and smallgroup business counseling. He followsup to ensure clients follow through withtheir plans, and teaches regular month-ly accounting and QuickBooks work-shops to SBDC clients.

Additionally, Oakes acts as a farmand business adviser for agriculturaland rural-based businesses. He assistsACCION San Diego small and minori-ty businesses create and maintain abudget to aid in the repayment of theirmicro loans and succeed in their busi-ness ventures. During the past severalyears he has volunteered and served asa committee member and board mem-ber of several local agricultural organi-zations.

Oakes demonstrates a commitmentto improving the lives of business own-ers through his own business, as well ashis work with the SBDCs and othercommunity and business organizations.

VVeetteerraann SSmmaallll BBuussiinneessss CChhaammppiioonn ooff tthhee YYeeaarrCorrina B. Brennan

Family Member EmploymentAssistance Program, Marine & Family

Services Camp PendletonCorrina Brennan is responsible for

promoting and coordinating the effortsthat provide assistance to military per-sonnel on Camp Pendleton. She is pas-sionate about bringing communityresources on base that offer employ-ment and business opportunities to vet-erans and active duty personnel.Brennan coordinates job and resourcefairs at least twice a year and workswith Small Business DevelopmentCenter consultants to provide monthlytraining seminars on a wide range ofbusiness topics to veterans and activeduty personnel.

Additionally, Brennan has beeninvolved in many programs gearedtoward assisting the Marine Corps mil-itary spouse and the service memberthrough leadership and training devel-opment. She has acted as a militaryspouse mentor, key volunteer and mili-tary service member sponsor. She advo-cates for such programs as theExceptional Family Member Program,which provides military families whohave special needs children with infor-mation, resources and referrals toorganizations that can best meet theirneeds. Brennan also has been the facil-itator of a federal grant offered to mili-tary spouses to increase their careerdevelopment with the objective tobecome gainfully employed. Brennan isdedicated to enriching the quality of lifeand smoothing the transition of mili-tary service members and their familiesas they embark on employment in thecivilian sector.

SSmmaallll BBuussiinneessss JJoouurrnnaalliisstt ooff tthhee YYeeaarrDitas D. Yamane

National City Times, FilipinoTimesand D.R. Marketing & PromotionsDitas Yamane, president of D.R.

Marketing and Promotions and pulish-er of National City Times and FilipinoTimes utilizes her editorial skills toinform and support her commitment tothe National City and the Filipino com-munities she represents. Couple thiswith her community service and volun-teerism, and you will find a woman rec-ognized as a community leader, entre-preneur, advocate and promoter.

In addition to running her businessand duties as a publisher of two localnewspapers, Yamane is a member ofthe National City Chamber ofCommerce (NC-CoC) EconomicDevelopment Committee. She provided

See Profiles on 13


Strategic planning

Why properly managing strategic initiatives is vital in tough economyBusiness executives are battling time

and the economy, necessitating thatevery company has a strategic plan.Many of the recessionary-inducedchanges may be permanent, forcingexecutives to employ strategic man-agement techniques to revise theirorganizations for success in a neweconomy.

Creating an effective businessplan in today’s environmentThirty-page glossy plans are out —

one-page working documents are in— because a short plan gives every-one in the organization a clear, con-cise picture of the priorities. Describeeach initiative by outlining where thecompany is now, where you want togo, when you want to get there andhow you plan to get there, and alsoname who is responsible for eachassignment. The plan should be creat-ed by those who have a vested interestin the outcome. The planning teamshould blend operational managerswith strategic thinkers to create a planthat is visionary, yet detailed and real-istic.

Next step: implementationCommunicate the plan to every

employee in the organization, makingsure that everyone buys in to the mis-sion and understands his or her role.Every employee should know how

their particular role supports the over-all organization’s business and goals.Executives may not have time to sur-vey every employee to gauge accept-ance and understanding of the plan.Make a few phone calls and chat withemployees in the hallways, askingthem for feedback to validate theeffectiveness of your communicationstrategy.

Create individual goals tied to the plan

While you are communicating thevision, amend the employee perform-ance plans, disseminating accounta-bility and responsibility for achievingthe company’s objectives to each indi-vidual. Aligning employee compensa-tion with the overall strategy of thecompany adds another layer of rein-forcement toward achievement of thelarger objectives.

Managing the planAfter a new plan is introduced,

review meetings should be held every30 days, because getting off on theright foot and driving change are crit-ical to ultimately achieving the plan.Short-term review points provide anopportunity to reset the “must do”actions. It is important to distinguishthe “must do” items from those youshould or could do. While staff mem-bers should report on their progress

during the meetings; remind them viae-mail about upcoming sessions, soeveryone knows what to expect, andto let the staff know you are seriousabout following the plan through tocompletion. Appoint a scribe to takenotes during the meeting, and thensend out the minutes and a list ofaction items after each session. Adjusta goal if the economy has changedmaking it unachievable. Don’t shyaway from holding people account-able. Look at any macro objectives ina micro way to see if political, socialor economic events necessitate achange, and review assumptions youused in creating the goal to see if theyare still valid. In this economy, youmay need to challenge your ownassumptions more frequently than inthe past.

Too often, executives create a busi-ness plan and it sits on the shelfbecause there’s enough momentum inthe economy to carry the companyforward. One of the biggest mythsabout this recession is that we can waitand things will ultimately get better.This time, executives need to createchange. The only way to move anorganization toward a new strategicvision is by managing strategically.

Wayne R. Pinnell, CPA, is the man-aging partner at Haskell & White LLP.Reach him at 858-350-4215 or [email protected].

Submitted by Haskell & White LLP

leadership in the chamber’s search for anew executive director and filled in as avolunteer CEO for the NC-CoC formost of 2008 during the search.

She also performed duties as secre-tary for the Morgan Square BusinessImprovement District, a historicalpreservation and economic develop-ment project. She founded the Filipino-American Chamber of Commerce andhas hosted the president of thePhilippines on multiple occasions,encouraging trade and investment inour economy. Furthermore, Yamanewas instrumental in the founding ofSan Diego’s newest community bank,Vibra Bank, established in Chula Vistain summer 2008. Yamane has shownher commitment to small and emerg-ing businesses and has proven herself atalented business development expert.

SSBBAA CCoommmmuunniittyy SSeerrvviiccee AAwwaarrddACCION San Diego

This award recognizes ACCION SanDiego for exemplary service andextraordinary assistance as a micro-lender, instrumental in the growth andsuccess of San Diego small businessand economic development.

GGeeoorrggee CChhaannddlleerr LLeeaaddeerrsshhiipp AAwwaarrddThis award recognizes an individual

or organization for leadership and com-mitment to excellence in small businessdevelopment and success. This year’saward goes to:

CDC Small Business Finance

SBA Lenders achieve outstandingresults year after year. These two SBAlenders are recognized by the San Diegodistrict office for producing the most504 and 7a loans last year. Theselenders were most effective in lendingto small businesses, not only locally, butnationwide. They also excelled in loansto women and minority businesses.They are role models among SBAlenders. SBA’s loan programs help busi-nesses that cannot obtain neededfinancing through conventional means.

KKuurrtt CChhiillccoottttPresident & CEO

CDC Small Business Finance Corp.Under Kurt Chilcott’s leadership,

CDC Small Business Finance has ledthe nation in SBA-504 lending formore than a decade, providing access tocapital through distinctive and innova-tive products and services. CDC has

been recognized with the SBA’sNational Lender of Excellence awardthree times. In fiscal year 2008, CDCmade 639 SBA-504 loans for morethan $1.2 billion. In San Diego, CDCprovided $221 million in total projectfinancing.

Chilcott’s leadership has resulted inthe growth of hundreds of diverse smallbusinesses, much to the community’sbenefit. Chilcott has long advocatedinvesting in other organizations andprograms. In 2008, CDC invested$500,000 in a nonprofit, venture capi-tal fund development organizationmanaged by Pacific CommunityVentures.

Chilcott is not only head of thenation’s leading CDC, but a recognizedeconomic development leader national-ly. He has developed and managednumerous new economic developmentinitiatives at the state and local levels

ProfilesContinued from Page 12

take-home pay and delays the 3 percentwithholding from government contrac-tors until 2011.

• Availability of industrial develop-ment bonds for companies that produceintangible property.

• Ability for employees of servicebusinesses and farms that are experi-encing downsizing because of interna-tional competition to participate in thefederal Trade Adjustment Assistanceprogram.

• SBA-facilitated purchase of moreSBA-guaranteed loans to improve sec-ondary market liquidity.

• SBA-facilitated sale of 504 pro-gram first mortgage loans.

• Ability to use 504 loans to refinanceexisting fixed asset loans.

• Expansion of SBA investment pro-gram, the Small Business InvestmentCompany, which uses raised capital toprovide debt or equity financing tosmall businesses.

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StimulusContinued from Page 1

for more than 26 years. His expertiseranges from regional planning to tech-nology-based economic developmentto small business finance.

SSBBAA DDiivviissiioonn,, UU..SS.. BBaannkkThrough its San Diego-based SBA

Division, U.S. Bank was once again SanDiego’s No. 1 SBA lender in 2008, aswell as one of America’s top SBAlenders.

SBA Division is headquartered in theScripps Ranch Community andemploys approximately 175 SBA loanexperts, mostly loan processors, under-writers and loan service specialists.

In SBA fiscal 2008, U.S. Bank pro-vided a record 3,955 long-term SBAloans to small businesses nationwide,according to SBA information. In SanDiego and Imperial counties, U.S. Bank

See Lenders on 14

SBA Small Business Lenders of the Year


stantly meeting new clients, and we pro-vide a really important service to helpstimulate the economy.”

“If we can support a banker’s require-ment for lending, then there’s moneygoing out the door,” Ellis added.

Ellis’ enthusiasm for his work simplypours out of him. Those who know Ellisdescribe him as highly motivated, detail-oriented, committed and energetic.

“He has a drive to do work,” said LouisKaplan, Ellis’ legal adviser, longtimefriend and member of the business’ advi-sory board. “He’s not a guy who sitsback.”

Ellis’ hardworking approach spillsover into other areas of his life. An avidcross-trainer, Ellis tries to incorporatetwo workout sessions into his dailyschedule, which starts at 4:30 a.m.

When asked about his favorite activi-ties, he rattles off a list: kayaking,cycling, weightlifting, martial arts,swimming, hiking, kite-surfing, and thelist goes on.

Ellis’ first commitment, however, is tohis client. He often meets his clients attheir offices or facilities. He makes apoint of not taking on too many projectsat one time or spreading himself toothin.

“We have personal relationships,” Ellissaid. “We’re very oriented toward valuebecause that’s what we do.”

And with a continually growing clien-tele in nearby Mexico, Ellis is also aim-ing to offer all services in Spanish by theend of the year and is currently takingprivate courses. A Montreal native, Ellisis already fluent in French.

Ellis anticipates that the federal stim-ulus measures aimed at small businesseswill provide another boost.

Part of the American Recovery andReinvestment Act enables the U.S.Small Business Administration to guar-antee up to 90 percent of bank loans,thus reducing the risk to the bank andtheoretically making the institutionmore willing to lend.

More lending and underwriting activ-ity means more demand for valuationand appraisal, although Ellis points outthat his business is countercyclical: Ingood times, his services are needed tosupplement financing and wealth man-agement programs. In bad times, Ellisgets called in for bankruptcies and assetand business sales.

Regardless of the situation, Ellisadvises business owners to avoid thetemptation to take shortcuts, andinstead to work closely with certified,specialized professionals, whether theyare accountants, attorneys, bankers orappraisers.

“I’ve seen businesses that havebecome stronger because they’veworked with their professionals, and

EllisContinued from Page 3

magazine, she’ll consolidate the ship-ments into a single box.

And when she’s asked to send some-thing to an editor or other personrequesting samples, she’ll ask if theyhave a delivery service account they’d

like to use. Often, the recipient is will-ing to pay.

Many small business owners havealso found that delivery services andthe Postal Service can help cut costs.Any company opening an accountwith a delivery service should beable to negotiate a price, especially ifit has a large number of letters orpackages to mail. Remember, there’sa lot of competition out there, and,especially in a slow economy, thedelivery companies want your busi-ness.

Technology offers small businessowners many ways to save money onmailing and shipping costs. It is easyto send printed material by e-mail, orthrough file transfer Web sites thatcan accommodate documents andfiles that are too large for many e-mailsystems. These methods eliminate notonly postage costs, but also printingand labor expenses.

There are also Web sites that canhelp businesses comparison shopamong delivery services.

Small businesses are also saving byswitching to Web-based or e-mailbilling rather than snail-mail invoices.

Tamara Wilson’s PR firm does somuch work via e-mail, includingnewsletters and billing, that hermonthly postage bill is now about$200, instead of the $2,000 or$3,000 she used to spend.

“I’m not only saving that money, I’msaving my clients’ money,” saidWilson, president of WWiillssoonn PPuubblliiccRReellaattiioonnss in Seattle.

SSoouurrccee CCooddee:: 2200009900552211ccrrbb

Postal increaseContinued from Page 1

of her manufacturers construct thefurniture in the United States, andmany here in Southern California.

In down times, military work hashelped to fill the bill for ICE. The firmwas recently contracted to make itsfurniture appropriately conform to atwo-phased renovation of an existingbuilding at the San Bruno MarineCorps Marine Base. The phases,expected to be completed in August,will include everything from newchairs to new workstations.

ICE is also planning to design furni-ture at Camp Pendleton, the MiramarMarine Corps Air Station and theNaval Amphibious Base in Coronado.

Perhaps Anderson’s favorite job wasproviding the furniture, artwork andplants for a 130,000-square-footbuilding for the Morongo Band ofMission Indians in the Cabazon area.

The job has specially designedworkstations, Stylex (stacking) confer-ence chairs, flowing tabletops thatconform to the room, and basket-likechair backs designed to hearken backto the tribe’s heritage.

“The Morongo tribe has a great her-itage of basket weaving, and we were

looking for something that reflectedthat,” Anderson said.

The warm Southwestern colorswere another key aspect in the furni-ture design for its spaces.

Anderson said designing furnitureto conform to its surroundings isabout solving problems — a necessar-ily deliberative process.

“It’s not that you have to have themost expensive solution, but it has towork. Most of my competitors don’tseem to get that,” she said.

These solutions may include free-flowing tables, benches and other ele-ments that navigate angles, wall sock-ets and other obstructions. Thesesolutions often mean ICE won’t havethe lowest bid.

“We may not be the cheapest, but wegenerally get the jobs we go after,”Anderson said. “We like to think of our-selves as the NNoorrddssttrroomm’’ss of furniture.”

Anderson expects revenues willremain in the $2 million to $3 millionrange in 2009.

“My goal is to bring this to $4 mil-lion to $5 million as the economyimproves,” she said.

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AndersonContinued from Page 2

businesses that have weakened becausethey have not,” he said.

In Ellis’ case, he holds the highest cre-dential from the National Equipment &Business Builders Institute as a certifiedmachinery equipment appraiser and isalso a certified senior business analyst.

Ellis is also a graduate of the TToorroonnttooDDoommiinniioonn BBaannkk commercial lendingtraining program and the TorontoDominion asset base lending/under-writing training program.

His background in lending, corporatefinance and business (Ellis was thefounder, chairman and CEO of a med-ical device firm in Toronto, Canada) hasequipped him to better understand theneeds of both the lender and the borrow-er, he said.

He is careful to note that his work isunbiased, and his methods and docu-ments are defensible.

“We’re an advocate only for our ownevaluation,” said Ellis, who describes val-uation and appraisal as both a science

and an art. “We have no benefit to theoutcome.”

If Ellis is not an expert in an area, suchas tax litigation or specific machinery, hereaches out to a vast network of special-ized appraisers. They reach back as well,tapping Ellis for his specialty in finance.

Michael Irvin, director of Poway-based EExxcclluussiivvee AApppprraaiissaall SSoouurrccee,recalls partnering Ellis with a client whowas planning to liquidate all of hisequipment and walk away from thebusiness.

Ellis came in, performed a businessevaluation, and showed the client thathis business had value; he just needed anew business plan.

“There are times I’ve needed hisexpertise, and literally no one else couldpossibly do it the way he did it,” Irvinsaid in a recent phone interview. “He’sone of the most honorable business peo-ple I’ve ever dealt with.”

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provided 90 SBA loans totaling $11.4million.

Nationally, U.S. Bank operates 25specially designated SBA BusinessCenters, spanning an area stretchingfrom Pennsylvania to Washington stateand from San Diego to Tennessee.

“U.S. Bank is committed to providingproducts and services designed to helpour small business customers be suc-cessful, and our SBA Division focusesdaily on providing exactly the right SBAproduct small businesses need,” saidErik Daniels, president of U.S. Bank’sSBA Division.

22000099 NNaattiioonnaall SSCCOORREE CChhaapptteerr ooff tthhee YYeeaarr

San Diego SCORE Chapter 140The San Diego chapter received

SCORE’s National Chapter of the Yearaward for its exceptional servicegrowth, public outreach and excellentclient satisfaction in 2008. Nationwide,SCORE chapters serve as SBA resourcepartners and provide expert advice andvaluable resources for entrepreneurs tostart and grow their own small busi-nesses.

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LendersContinued from Page 13


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