Metro Action Annual Report 2015

METRO
2014 - 2015
Annual
Report
MetroAction.org
letter from the president
Ray
Ceccotti
MetroAction President
Each year, we reflect on the impact MetroAction, the
small business development affiliate of The Greater
Scranton Chamber of Commerce and northeastern
Pennsylvania’s leading micro lender, has made on our
local entrepreneurs and community.
For our lenders, MetroAction is there every step of the
way – from helping businesses get off the ground to
providing resources to businesses that want to expand.
No two borrowers are alike and MetroAction understands
the importance of meeting each individual’s unique
financing and training needs.
That’s the MetroAction difference.
First, we offer to take a second look at a loan application
if a bank is unable to finance a business. We consider
more than a credit report to find strengths in a business,
and we have the flexibility to review all collateral options
including those that may be considered unconventional.
By meeting our basic requirements, borrowers can gain
MetroAction Annual Report | 1
access to capital (our average loan being $22,000).
Finally, MetroAction provides counseling and training
throughout the process to help build our borrowers’
credit.
MetroAction’s efforts to support businesses in our
community go well beyond financing opportunities. Each
year, in conjunction with The Chamber, MetroAction
hosts The Chamber Gala – the area’s premiere
event that celebrates outstanding local businesses in
northeastern Pennsylvania.
For the past 37 years, MetroAction has distributed
more than $6 million throughout every region in our
service area. Our primary role is to encourage, foster
and nourish local businesses to keep Northeastern
Pennsylvania moving forward.
On behalf of our board, staff, and clients, I sincerely
thank our partners and supporters for their dedication
to helping entrepreneurs in our region succeed.
M
Small Business
Loan Programs
MetroAction’s small business loan programs were created to provide
loans to start-up or expanding businesses that are unable to obtain
traditional financing. These businesses do not meet bank criteria for
a number of reasons including damaged credit, lack of collateral and/
or lack of capital.
Small Business Loan Program
• Amount: Up to $75,000
• Eligible Businesses: Start-up and expanding for-profit
small businesses in MetroAction’s nine county territory
• Terms: Up to 60 months, with no pre-payment penalty
• Interest Rates: 7% - 8.79% and are fixed for the term of the loan
METRO
• Loan Use: Working or start-up capital, purchase/upgrade equipment,
inventory purchases, renovations, etc
Luzerne County Small Business Loan Program
• Amount: Up to $100,000
• Eligible Businesses: Start-up and expanding for-profit
small businesses with fewer than 100 employees located
in Luzerne County
• Terms: Up to 120 months
• Interest Rates: 10 Year U.S. Treasury security plus 1%
• Loan Use: Working capital, land and building acquisition,
construction, machinery and equipment purchases,
environmental compliance, pollution control and/or prevention
MetroAction Annual Report | 2
uy
lkill Co
ty
un
Sc h
Bumblebee
Academy
• $10,000 •
Loan
Lauren and Kristen Gately are the two sisters
behind the top-notch child care facility named
Bumblebee Academy in Schuylkill Haven. While
each sister had experience working with children
– Lauren at a local child care center and Kristen
as a private nanny – opening their own center
was a different story and one they thought of as
something that could happen in the distant future.
While working at a local daycare center, Lauren
often received phone calls from families in need of
child care as the majority of daycares in the area
were at full capacity. It was then that Lauren knew
that she should open a child care facility.
“My sister had always wanted to open a daycare
after she finished college, and the plan was for
me to be a silent partner. The opportunity to buy
a local daycare center came up, and because
Kristen is still in school, we decided that I would
play the more active role. We bought the daycare
in August 2014, completely redesigned the interior,
and rebranded the business with my sister and I
working together to manage it.”
Not being an established business in a small town
was an obstacle both Lauren and her sister had
to overcome. Bumblebee Academy didn’t have a
reputation yet and lacked the initial word of mouth
other local daycares relied on for new business.
When Lauren initially bought the space, it had
two rooms that could fit a total of 26 kids. At the
time, Lauren felt the stress that nearly every
entrepreneur feels at some point. She was
worried about enrollment and making enough
money to pay the bills. In addition, daycares have
numerous state regulations to abide by; Lauren
had to make sure that the correct paperwork was
completed and filed correctly and that her staff
followed the rules laid out by the state at all times.
Time was certainly of the essence.
With the help of MetroAction, the Gately sisters
received a loan and were able to renovate and
rebrand the daycare much sooner than they would
have otherwise been able to. The Gately sisters
found staff who were willing to work hard, connect
with families, and go above and beyond for the
kids. The sisters also built a curriculum to prepare
the children who would be attending kindergarten
following their time at Bumblebee Academy.
In the future, Lauren and Kristen would like to
see full class enrollment and have an outstanding
reputation in the community as a quality childcare
center. As far as long term goals, the sisters
aspire to open a second location in the next few
years and possibly franchise the daycare at some
point in the future.
MetroAction Annual Report | 4
Star Super
Bakery
Charles and Winnie Ukattah, owners of Star Super
Bakery, were both born and raised in Nigeria and came
to America 25 years ago in pursuit of education. After
years spent starting a family in New Jersey, the pair
decided to move to Pennsylvania where both could
further their careers in information technology and
healthcare. In 2010, Charles and Winnie made another
bold move and left their jobs to follow their dream of
owning a bakery.
The Ukattah’s initially founded Star Super Bakery in
Luzerne County – one of the only bakeries in Northern
Pennsylvania to offer African breads in addition to
American bakery products. However, at first they found
business to be slow.
“Our first location in Luzerne saw very little foot
traffic; the business was too slow. The problem was
the parking. There weren’t enough places for our
customers to park their cars so they didn’t bother to
come inside. Once we relocated Star Super Bakery to
Dallas in 2012, our foot traffic tripled.”
Retail orders began to pick up, as did wholesale
orders from out of town customers. Soon, over 15
supermarkets in the Maryland and D.C. area were
placing weekly orders for Star Super Bakery’s unique
Crown Bread. Having trouble keeping up with the
demand, Charles turned to MetroAction for a loan to
build a manufacturing facility to increase production.
“This is our first time taking out a loan. We funded the
business with our own money first because we wanted
MetroAction Annual Report | 5
to be positive that the business would be profitable and
that we could pay back the loan. We really love what we
do and we didn’t want money to jeopardize our dream.
With this loan, we can purchase new equipment and
delivery vans to increase production and satisfy the
increasing demand.”
Currently, the bakery is producing 1,500 loaves per
week, yet with the new equipment it has the potential
to increase that production number to 6,000 loaves
per week. In addition, the bakery will be able to satisfy
26 more wholesale customers on the waiting list,
located in New York, New Jersey, Pennsylvania, and
Washington D.C.
Charles notes that there were two key factors
contributing to the success of his business: quality and
customer service.
“The quality of your product is the most important. Star
Super Bakery is unwilling to compromise the quality of
our product, that’s why we made it our motto. You need
to be humble and respect every customer equally. You
also do the best you can to impress your customers.
As a small business owner, I quickly learned that word
of mouth is the most powerful tool because people
recommend good products to their friends and family.
Word of mouth is more powerful than any advertisement
because people already trust their friends and family.”
ty
Lu
un
r ne C o
ze
• $55,000 •
Loan
MetroAction Annual Report | 6
ty
Lu
un
r ne C o
ze
• $25,000 •
Loan
MetroAction Annual Report | 7
JACS
John Armstrong has a background in construction
and management. Maria Earls’ expertise lies in
organization and office administration. This couple
from Lehman, PA combined their strengths and
focused on their shared dream of owning an ice
cream parlor.
“The ice cream industry is a pretty happy business
and we wanted our business to be a happy place.”
JACS Creamery and Eatery (named after the couple’s
four children – Jeffery, Alexandra, Corey and Shawn)
needed capital to cover the purchase of equipment,
inventory, and initial lease of the space. As a startup, they turned to MetroAction to help with their initial
costs.
Once their loan was approved, John and Maria
labored for 12 hours a day, every day for five months
straight to build their dream restaurant.
“Opening a business; it’s a hard thing to put into
words. It’s rewarding, but it’s also emotionally and
physically taxing. Location is important and you need
financial backing. It’s very difficult to get a startup
rolling. You need to do your homework, surround
yourself with good, trustworthy employees. The
process is exhausting. There are a lot of hours you
have to sacrifice and a lot of work to do.”
Creamery
& Eatery
food year round and located right in the center of
the town. John and Maria describe their success as
dependent on three factors: location, quality of food,
and commitment to the community.
Maria and John pride JACS on being the heart of the
community and even sponsor a team from the Back
Mountain Youth Soccer Association. JACS hosts
community events like youth sports team parties,
fundraisers, benefits, and giveaways. The creamery
and eatery is a place where kids can meet up after
school or after a big sporting event and spend some
time bonding. However, JACS isn’t just for children!
With the restaurant’s rustic, cozy atmosphere and
home cooked food, JACS is the perfect meeting
place for families, friends, and even businesses.
“The restaurant has something for everyone. We
open early so seniors can enjoy breakfast, families
come for lunch and dinner, and the children love the
ice cream. We even have a kid’s corner stocked with
books, coloring books, crayons, games, and rocking
chairs.”
If that wasn’t enough, JACS is committed to staying
“green” by reducing use of water, purchasing energy
efficient equipment and recycling materials. The
restaurant also hosts a vegetable stand to promote
local farmers.
True to the name, JACS Creamery and Eatery is
part restaurant, part ice cream parlor serving quality
MetroAction Annual Report | 8
r ne C o
ze
un
ty
Lu
KB’s Coffee House
• $15,000 •
Loan
MetroAction Annual Report | 9
The MetroAction
For nearly 25 years, Kerry Beth spent her time working for
other restaurant owners, helping their businesses become
successful. After watching the many restaurants flourish
with her assistance, she decided to pursue her dream and
open her own coffee shop.
NON-PROFIT | NON-TRADITIONAL
With more than 18 years of experience, MetroAction
is the leading non-profit community development
organization
in
Northeastern
Pennsylvania.
ETRO
There were some barriers Kerry Beth had to overcome,
and the hardest obstacle she had to surpass was the
financial funding for her start-up. After having trouble
obtaining funding from traditional lending sources, she was
referred to MetroAction from one of the organization’s bank
partners. MetroAction provided Kerry Beth with the working
capital she needed to start KB’s Coffee House.
Difference
With the help of MetroAction, Kerry Beth transformed a
house in Shavertown to a comfortable, cozy, and relaxed
coffee house. Located on North Main Ave, customers have
the option of dining inside on the first and second floors
or outside on the front porch or patio while being served
homemade coffee house cuisine.
Providing over $6 million in loans to start-up and
expanding small businesses, we are a committed
resource for the support needed to grow strong,
thriving businesses in our community.
YOUR SCORE & MORE
We look at much more than a credit report to find
strengths in a loan application.
THE CAPITAL YOU NEED
Our basic requirements allow a business to get the
For the past four years, KB’s Coffee House has been
serving breakfast, lunch, and dinner to Shavertown locals
while utilizing local vendors, such as Star Super Bakery
(see page 6). Now with more than 1,700 customers pouring
in each month, Kerry Beth wants to expand her menu
and purchase additional equipment to make the dining
experience at KB’s Coffee House even more enjoyable.
money it needs to start or expand. Our average
loan amount is $28,500.
UNTRADITIONAL COLLATERAL
We will review all collateral options available for a
loan package. This includes personal assets and
subordinate lien positions on real estate.
All entrepreneurs experience hardships and Kerry Beth
was no exception. There are a multitude of other franchises
and small businesses KB’s Coffee House must compete
with, and she credits word of mouth as her most effective
marketing tool. Kerry Beth rates customer satisfaction as
her top priority and she believes that her success is owed to
four key factors: the fresh, homemade food, the affordable
prices, the accommodating staff, and the comfortable
atmosphere.
“The first commandment in KB’s Coffee House is
customer satisfaction, and without a doubt, I strongly feel
that this is THE reason customers come to my business.”
SUPPORT EVERY STEP
OF THE WAY
We provide counseling and training throughout the
process to help you succeed.
Build your business
finance
your future
MetroAction Annual Report | 10
SmartBlondeCreative
Amanda Kuhn and Kelly Slinger, both born and raised in the
Cresco, Pennsylvania area, have always wanted to become
a resource available for fellow small businesses. This led to
the creation of Smart Blonde Creative, a graphic design firm,
in 2011.
Being a new business, banks were hesitant to move forward in
the loan process. The two were soon referred to MetroAction.
After a brief and easy loan application process, they were
given the financing they needed to start their business.
Armed with the funds from MetroAction, the founders focused
on building Smart Blonde Creative’s reputation and client
base, while forming strong relationships with their clients
and other businesses. Like most owners, Amanda and Kelly
felt the excitement and optimism of starting something new
paired with moments of fear and anxiety.
“Leaving the comfort of a full-time job is terrifying but we
weren’t afraid of hard work then (or now) and we both were
prepared to do whatever necessary to make sure we were
successful. Thanks to MetroAction we were able to get
funding easily to purchase our equipment. By networking and
getting involved in our community we were able to build a
client base and expand.”
addition to running a business, Amanda and Kelly are also
moms with five kids between the two of them with another
one the way! Yet even with this challenge, the two are highly
focused on Smart Blonde Creative’s success and expansion.
With the increase in business, the two applied for a new loan
from MetroAction. Because of their established relationship
with MetroAction, Amanda and Kelly felt comfortable coming
back to request additional financing to expand their business.
With the additional funding by MetroAction, the owners are in
the planning stages of developing their “Party in a Box” idea
and publishing a magazine, Smart Blonde & Crafty, which
includes DIY projects, art projects for children, and crafts.
Amanda and Kelly aren’t stopping there – they aim to continue
building their graphic design business while adding party and
wedding services as well as publication design.
“I sincerely believe our success is a result of providing
quality design work and customer service. I can say with
complete confidence that we have great relationships with
ALL of our clients, many of whom have become like friends.
Our clients know that if they call us at noon and need an ad
or something by 1pm that we’ll do whatever we can to make
that happen. We’re always available, up-front and honest –
plus we have a knack for great design.”
METRO
• Bank of America
• Betsy Black Consulting
• The Blue Ribbon Foundation of Blue
Cross of Northeastern Pennsylvania
• Center for eBusiness
and Advanced IT
• Citizen’s Bank of Pennsylvania
• Commonwealth of Pennsylvania
• Fidelity Deposit and Discount Bank
• Community Bank, N.A.
• The Honesdale National Bank
• M&T Bank
• National Penn Bankshares, Inc.
• Opportunity Finance Network
• Peoples Security Bank
• NBT Bank
• PNC Bank
• PNC Bank Foundation
• PPL
• Scranton Industrial
Regional Impact
Investors
Since the launch of Smart Blonde Creative in 2011, the
business has been expanding and so have their families. In
Development Company
• U.S. Department of Agriculture
• U.S. Department of
Treasury-CDFI Fund
• U.S. Small Business
Administration
• Wells Fargo
• Wells Fargo Foundation
Northern Tier Region
Wyoming, Wayne
& Susquehanna Counties
$305,000
Scranton/
Wilkes-Barre Region
Lackawanna & Luzern Counties
$5,100,402
Pocono Region
Pike & Monroe Counties
$760,015
Southern Region
Carbon & Schuylkill Counties
$35,000
M
r oe Co u
nty
on
• $20,000 •
Loan
MetroAction Annual Report | 12
MetroAction
Staff
Standing (L to R):
• Lisa Kenny, Business Development Assistant
• Kristine Augustine, Vice President,
Business & Community Development
• Leigh Magnotta,
Small Business Services Coordinator
Seated:
• Alicia Tompkins, Small Business & Community
Development Specialist
Each year, in conjunction with The Greater Scranton Chamber of
Commerce, MetroAction hosts The Chamber Gala – the area’s
premiere networking event that recognizes outstanding local
businesses in northeastern Pennsylvania.
During the Gala, the Scranton Awards for Growth and Excellence
or SAGE Awards are presented to businesses that are reaching
new heights in their respective industries.
MetroAction Annual Report | 13
M
A
M
Board of Directors
Linda B. Aebli
Scranton OECD
Joseph A. Boylan
Greater Wilkes-Barre Growth Partnership
Michael Hanley
United Neighborhood Centers
James Kelshaw
CANDO
Jason M. O’Malley
Law Offices of Jason M. O’Malley
Michael Pacyna
Fidelity Deposit & Discount Bank
METRO
Raymond Ceccotti
The Honesdale National Bank
Julie Schumacher Cohen
The University of Scranton
Philip P. Condron
Condron and Cosgrove
Joshua Mast
POSH at The Scranton Club
Greg Misterman
Peoples Security Bank & Trust Co.
Tim McLain
Studio m Architecture + Design
Scott Prebich
First National Bank
Jack Reager
BlackOut Design, Inc.
Todd Serafin
Luzerne Bank
Loan Committee
ACTION
Rosemary Dessoye
Greater Pittston Chamber of Commerce
Robert F. Durkin
Greater Scranton Chamber of Commerce
John P. Nealon, CPA
Baker Tilly Virchow Krause LLP
Vincent G. O’Bell
Fidelity Deposit & Discount Bank
Stephen Ursich
NE Economic Development Co.
Lee B. Walter
Retired
John Ferrett
Natalie O’Hara
Robert Carl
Fran Langan
Laurie Schwager
Raymond Ceccotti
Dominick Mitchell
Todd Serafin
Fallon Fermin
David McHale
Donna Simpson
Jack Ferrett
Natalie O’Hara
Marilyn Skettino
Jeffrey Ghergo
Charles Pierce
Jeff Solomine
Charles Hibble
Jack Reager
Lee Walter
John Koczwara
Ivy Reynolds
Dick Loftus
Kevin Rogers
Fidelity Deposit & Discount Bank
Schuylkill Chamber of Commerce
D & O Enterprises, LLC
Keystone College
Wells Fargo
METRO
The Honesdale National Bank
City of Hazleton
Fidelity Deposit & Discount Bank
PNC Bank
Hibble Realty, Weichart Realtors
Wayne Bank
National Penn Bank
NBT Bank
Community Bank, N.A.
D & O Enterprises
Wilkes University, SBDC
Black Out Design
Luzerne Bank
The University of Scranton, SBDC
Fidelity Deposit & Discount Bank
Peoples Security Bank
Retired
Community Services for Children
PNC Bank
MetroAction Annual Report | 14
MetroAction.org
222 Mulberry Street • PO Box 431
Scranton, PA 18503
P: 570.341.0270 • F: 570.347.6262
Find Us!
facebook.com/MetroActionFan
METRO
Design: Smart Blonde Creative | Photography: Guy Calli Associates, Inc.
[email protected]