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POWERING DREAMS. TRANSFORMING COMMUNITIES.
ORGANIZATIONAL REPORTAS OF MAY 2015
2
INVESTING IN AWESOMESisters Leah and Stephanie Melnik started out packing boxes of Leah’s handmade bars to send to family and friends. In 2013, Awesome Bars hit a growth point, and they were looking for a loan. The sisters weren’t making any progress with bank loans, so they asked Urban Solutions for some help. Urban Solutions put Leah and Stephanie in touch with OBDC. “Working with OBDC was a dream. They understood where we were coming from as a small business and knew that we needed a loan with a fast turn-around time,” Stephanie said. Now, Awesome Bars are selling in coffee shops from Santa Rosa to Los Angeles.
LEAH & STEPHANIE
AWESOME BARS
SAN FRANCISCO
Letter From CEO ........................ 3
Our Mission and Values.............. 4
How We Help .............................. 5
Impact of our Work .................... 6
Oakland Program ....................... 8
San Francisco Program ............... 10
Veterans Program ....................... 12
Our Team .................................... 14
Supporters .................................. 15
TABLE OF CONTENTS
Background photo on cover: Visit Oakland, Joshua Winzeler.
Dear Friends,
OBDC is proud to celebrate 36 years of helping small business owners realize their entrepreneurial dreams. Through the support of our partners, the hard work of our dedicated staff, the leadership of our board, and the commitment of so many talented entrepreneurs, OBDC is making an important difference in people’s lives.
What does economic opportunity look like? It looks like financially sustainable small businesses, higher employment rates, and vitality in commercial corridors. It looks like asset-building for entrepreneurs, increased income and savings in low-to-moderate income communities, and increased access to goods and services. We’re proud to say that we have made 627 loans and originated $41 million in loan capital to Bay Area business owners in the last ten years. We’re honored to support local business owners who are making a positive difference in their communities.
We’re excited to share our impacts with you, along with some of the personal stories of the small business owners we have the pleasure of working with. Throughout this report you will see our core values of opportunity, diversity, empowerment, innovation, and partnership reflected in our work.
As a community-based organization we rely on the support of people like you. Together, we can empower small business owners to succeed, transforming their lives, and helping communities thrive. We invite you to help us in furthering our reach and impact. If you share these values, stay connected by signing up for our newsletter, refer businesses to our services, and most importantly, shop with OBDC-funded businesses.
We appreciate your support and look forward to continuing to build inclusive prosperity in our communities.
Jacob Singer, President & CEO Wendell W. Jones II, Board Chair
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MISSIONOur mission is to create economic opportunity by empowering entrepreneurs. Through innovative partnerships we provide business owners with the capital, education, and relationships that allow them to flourish. Our collaborative approach helps our borrowers create jobs and stimulates economic development in low-to-moderate income communities.
VISIONOur vision is to empower small business owners to succeed, transforming their lives, and helping their communities thrive.
CORE VALUES For the last 36 years, OBDC has embodied core values that guide our strategy, daily work, and relationships with our borrowers, partners, and the community.
OPPORTUNITY DIVERSITY EMPOWERMENT INNOVATION PARTNERSHIP
OPPORTUNITYDIVERSITY
EMPOWERMENTINNOVATION
PARTNERSHIP
OPPORTUNITY DIVERSITY EMPOWERMENT INNOVATION PARTNERSHIP
STRENGTHSWe complement our core values with capabilities that combine to make OBDC uniquely equipped to meet the needs of our communities.
• Expertise
• Commitment
• Capacity
OUR MISSION & VALUES
CHICKEN + WAFFLES = SUCCESSOwner and Chef Tanya Holland received a loan for Brown Sugar Kitchen in 2008. She came back to OBDC in 2011 for support in opening her newest venture, B-Side BBQ. “When the banks and private equity investors would not provide sufficient capital, if any, OBDC took a chance.”
TANYA
BROWN SUGARKITCHEN
OAKLAND
Small businesses bring essential goods and services to our communities, are effective job creators, and help local economies grow. Investment in small businesses creates wealth for the business owner, income for employees, and safety and enhanced livability for the community.
SMALL BUSINESS LOANSWe offer quick, affordable, term loans ranging from $10,000 to $250,000 in Oakland, San Francisco, and to veteran-owned businesses in California.
BUSINESS DEVELOPMENT SERVICESIn addition to lending services, OBDC provides no-cost business development services to help borrowers become loan-ready, operate profitable businesses, and create jobs.
Pre-Loan SupportEach entrepreneur receives one-on-one support from a business development officer during the loan application process, including:
• Understanding borrowing needs
• Advising on financial performance and projections
• Advising on business plan
Post-Loan Support• One-on-one advising with OBDC staff
• Financial performance check-ins
• Workshops and events through OBDC and our community partners
• Newsletters with updates, opportunities, and business management tips
• Free expert advisor through businessadvising.org
• Townsquared’s online social network to connect with local businesses
FastTrac™OBDC’s FastTrac program through the Kauffman Foundation provides business training programs to start or grow successful businesses.
HOW WE HELP
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Our work builds self-sustaining, vibrant, local economies. Small businesses make up the backbone of local economic activity in cities, sustaining communities that depend on high quality local jobs, goods, and services within their neighborhoods. That stability in turn creates a safer and more livable environment for all.
OBDC also works closely with cities on key economic development objectives along community corridors. By empowering people at the local level, entrepreneurs and employees create positive community impact.
These loans supported:
• 188 start-up businesses
• 205 businesses located in low-to-moderate income neighborhoods
• 179 businesses with a low-to-moderate income owner
• 161 women-owned businesses
• 151 minority-owned businesses
With OBDC’s capital, these companies created and sustained more than 2,600 jobs in the last five years.
THE IMPACT OF OUR WORK
Food & Beverage
Professional Services
Retail
Health & Beauty
Arts & Entertainment
Education
Manufacturing
OUR BORROWERSBY INDUSTRY
IN THE L AST 5 YEARS
$23 MILLION 323INTO BUSINESSESOBDC HAS INVESTED
580
580
580
980
880
880
880
80
80
80
13
24
24
1
280
280
80
1
1
101
101
101
101
101
SAN FRANCISCO
BERKELEY
OAKLAND
ALAMEDA
For an interactive map of our borrowers, go toobdc.com/resources/shop-with-our-borrowers
MAP OF OUR BORROWERS
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CHALLENGE IMPACTOakland’s unemployment and poverty rates remain high, despite the region’s economic recovery.
Every year, OBDC-funded businesses in Oakland generate more than 500 new jobs, many filled by low-to-moderate income Oakland residents.
Oakland loses tax revenue and access to essential goods and services when people shop outside of Oakland. Vacant stores depress real estate values and create blight, increasing public safety concerns.
OBDC drives capital into struggling commercial corridors. For example, OBDC accelerated its efforts along the Broadway Corridor, adding 30 businesses in 18 months to the 60 already previously supported, thanks to support from the Citi Foundation.
Access to capital continues to be a challenge for businesspeople of color in Oakland who don’t qualify for bank financing.
OBDC has a distinguished track record of making sure our services and capital are deployed in parity with the communities in which we operate. OBDC has originated 300 loans totaling $26 million over the last 10 years in Oakland. Last fiscal year, 26% of our Oakland loans were to African American borrowers.
OAKLAND’S RENAISSANCE:RESPONDING TO CHALLENGES, MAKING IMPACTS
The common denominator
among the entrepreneurs we see
in Oakland is that they have a
sense of its cultural diversity and
community, and understand the
value, and often the relevance,
of being here.
SCOTT LEWISSenior Vice President –
Oakland Market Manager
OBDC HAS INVESTED
VETERAN-OWNEDBUSINESSESIN
TO
$1.4 MILLION
NEARLY BUSINESSES NATIONWIDE ARE VETERAN-OWNEDIN1 10
NEARLY CREATED/SUSTAINED IN SAN FRANCISCO
14
IN THE L AST 10 YEARS
OBDC HAS
ORIGINATED 300 LOANSIN OAKLAND $26 MILLIONTOTALING
400 JOBS
A TASTE OF JAMAICA IN OAKLAND“With OBDC’s help we opened our restaurant in November 2013, and Kingston 11 achieved a lot of milestones in the first year, including breaking even. Now, our goal is profitability as we try to be the best restaurant in Oakland,” says Nigel Jones. Kingston 11 is truly a part of Oakland, and their business employs 30 people from the community. Nigel notes, “Oakland is a diverse city, and we want our restaurant to reflect the community. From our management team to our customer service approach, we reflect Oakland.” Now, Nigel sees OBDC as a trusted partner: “If we have questions or need advice, I feel 100% confident that I can reach out to Scott and to OBDC. I know the advice I get will be sound and helpful for my business.”
NIGEL & ADRIAN
KINGSTON 11
OAKLAND
LIGHT-UP A START-UPIn the fall of 2012, Max Gunawan designed a light that allows people to have beautiful lighting anywhere. In February 2013, he launched the product on Kickstarter, and Lumio was born; a year later Lumio’s products were selling in the MOMA store in New York City and in high-end design shops across the globe. A financial advisor recommended that Max look into SBA loans for his business. He was nervous about the process, because Max’s design studio was a crowd-funded start-up. “We were an oddball,” Max said, “but the whole process moved really fast. I don’t know what I would have done if it wasn’t for OBDC, because there weren’t any other options.”
MAX
LUMIO
SAN FRANCISCO
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CHALLENGE IMPACT
Small businesses in San Francisco make up 97% of businesses and employ 63% of workers – they are a vital element in keeping San Francisco diverse and livable. Businesses need access to capital and expertise to be a part of San Francisco’s prosperity.
OBDC’s successful partnership with the city of San Francisco is designed to support the city’s small business community, especially companies located in low-to-moderate income areas. Over the last five years, OBDC has deployed 74 loans totaling over $5 million in San Francisco.
Despite the city’s economic achievements, many of the city’s neighborhood corridors, especially those in low-to-moderate income areas, continue to struggle with rising prices and demographic changes.
OBDC works closely with city government to support and develop businesses in the city’s 26 Invest In Neighborhood areas.
Despite the city’s low unemployment rate, jobs for low-to-moderate income people who lack training continues to be a challenge.
Over the last five years, OBDC’s portfolio has created or sustained 400 jobs in San Francisco.
EMPOWERING SAN FRANCISCO’SURBAN ENTREPRENEURS
San Francisco is a melting
pot of small businesses, and it’s
exciting to provide capital in a city
that supports startup and growing
businesses. There are so many
good ideas and companies that have
evolved by people who have the
courage to put theory into practice.
I’ve enjoyed the opportunity to work
with entrepreneurs from different
walks of life who are all joined by
the same goal.
DARIUS MAHAJERSenior Vice President –
San Francisco Market Manager
OBDC HAS INVESTED
VETERAN-OWNEDBUSINESSESIN
TO
$1.4 MILLION
BUSINESSES NATIONWIDE ARE VETERAN-OWNEDIN1 10
OBDC BORROWERS INSAN FRANCISCO
14
IN THE L AST 10 YEARS
OBDC HAS
ORIGINATED
IN THE L AST 5 YEARS
300 LOANSIN OAKLAND $26 MILLIONTOTALING
IN THE L AST 5 YEARS
$23 MILLION
CREATED/SUSTAINED 400 JOBS
INTO BAY AREA COMPANIESOBDC HAS INVESTED
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As a veteran myself, I enjoy
helping my fellow veterans with the
often challenging and unclear aspects
of getting the capital needed to start,
manage, and grow small businesses.
The value and impact provided by
veteran small business owners is
tremendous given its implications to
our communities in terms of business
leadership, jobs, quality of life,
financial viability, and asset-building.
Given the tremendous sacrifices
veterans make, there are no words
that can adequately capture how
rewarding it is for me to be able to
help veterans in this way.
NOAH HARRISVice President –
Veterans Program
PARTNERING WITH VETERANS
OBDC HAS INVESTED
VETERAN-OWNEDBUSINESSESIN
TO
$1.4 MILLION
BUSINESSES NATIONWIDE ARE VETERAN-OWNEDIN1 10
OBDC BORROWERS INSAN FRANCISCO
14
IN THE L AST 10 YEARS
OBDC HAS
ORIGINATED
IN THE L AST 5 YEARS
300 LOANSIN OAKLAND $26 MILLIONTOTALING
IN THE L AST 5 YEARS
$23 MILLION
CREATED/SUSTAINED 400 JOBS
INTO BAY AREA COMPANIESOBDC HAS INVESTED
Started in 2014, OBDC’s Veterans Program provides training, capital, and support for new and existing veteran-owned businesses. Veterans struggle with both employment and access to business capital. They have the skills and motivation to become small business owners, and are 45% more likely to pursue self-employment than non-veterans. Nearly 1 in 10 businesses nationwide are veteran-owned.
CHALLENGE IMPACT
Veteran’s lack self-employment opportunities and access to capital for their businesses.
OBDC has invested $1.4 million into 14 veteran-owned businesses, and the portfolio is expected to rapidly grow over the next couple years.
Veterans lack comprehensive business support services to accompany their loans and business growth.
OBDC’s FastTrac program through the Kauffman Foundation is providing workshops and training to veterans in all stages of business.
HAUTE, HANDSOME FASHIONAs a U.S. Navy veteran, Karen Roberts utilizes her military training as a business owner. “You have to be disciplined, stay committed, and be able to change course and make decisions on the fly – just like a tour of duty,” she commented. Karen came to OBDC for capital to produce more inventory, as HauteButch’s sales were starting to decline, because they didn’t have all the sizes and styles that their customers were looking for. In addition to inventory, HauteButch was able to hire several employees, allowing Karen to focus on running her business. “It was a pleasant surprise to be funded by OBDC. I felt really supported during the process – like OBDC really wanted to help us.”
KAREN
HAUTEBUTCH
SANTA ROSA
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To truly be a community lender, we believe it is important that our staff and board have strong cultural competencies and reflect the demographics of our community and clients. We are proud to have a highly diverse, talented team that can meet the needs of underserved communities.
OUR TEAM
Jacob Singer, PhDPresident &
Chief Executive Officer
Noah HarrisVice President –
Veterans Program
Flor MelaraAssistant Vice President –
Relationship Manager
William OngExecutive Vice President & Chief Financial Officer
Jen LeybovichVice President –
Strategy & Development
Rachel AoananManager –
Loan Processing
Scott LewisSenior Vice President –
Oakland Market Manager
Jackie MaxwellVice President – Administration &
Accounting
Mandolin Kadera-RedmondManager – Administration
& Accounting
Darius MahajerSenior Vice President – San Francisco Market
Manager
Maopepe GaoteoteVice President – Loan Closing &
Compliance
Paula GrovesVice President –
Business Consulting
Joyce WindrossVice President –
Operations
Adrian Gomez ZavalaAssistant Vice President –
Relationship Manager
Kathia KacicAssistant Vice President –
Loan Servicing
Katie TaylorManager – Marketing
& Special Projects
Bruce Jobson, SPHRHuman Resources
OBDC STAFF
As a community development organization, OBDC embodies the aspirations, dreams, potential, and diversity of the greater San Francisco Bay Area community. Everyone within this organization is extraordinarily talented and committed to OBDC’s mission to empower local entrepreneurs to be successful. At this stage in my career, I am thankful to have the opportunity to work within this group of diverse, dedicated, and capable professionals and most importantly to service the needs of the entrepreneurs within our community.
SCOTT LEWISSenior Vice President –
Oakland Market Manager
Wendell W. Jones IIChair, Serial CFO
William TaylorMember,
The Law Office of William A. Taylor
Gladys GreenVice-Chair, Oakland
Economic Development Corporation
Kristina MartinMember, Citibank
Arthur WashingtonMember,
Nor-Cal FDC
Mark Alan LindquistSecretary,
M.A. Linquist Co.
Eric NelsonMember,
Bank of the West
Stephanie JonesTreasurer,
Wells Fargo
Erwin ReevesMember,
Richmond Community Foundation
OBDC BOARD OF DIRECTORS
SUPPORTERSOBDC is one of the country’s top performing CDFI small business lenders. For a copy of OBDC’s 2014 audited financial statements, please contact us at [email protected].
With Financial Support From:Bank of AmericaBank of the WestCalifornia Capital Access ProgramCalvert FoundationCDFI FundCity of OaklandCity of San FranciscoCiti Foundation
Comerica BankJPMorgan Chase FoundationNovogradac Rivers FoundationOpportunity Finance NetworkU.S. BankUnited States Small Business AdministrationWells Fargo
LaSandra HuntMember,
JPMorgan Chase
OBDC is a proud member of:
www.obdc.com
OAKLAND
2101 Webster Street I Suite 1200
Oakland I CA 94612
SAN FRANCISCO
One Market I Spear Tower I Suite 3528
San Francisco I CA 94105
OBDC Small Business Finance
@obdc_finance
OBDC Small Business Finance