Investing in the community
STCU business lending helps build the regional economy
[January 6, 2012]
Individual members are the heart of a member-owned, not-for-profit cooperative.
But STCU also serves businesses and other organizations that contribute to the social and economic fabric of the Inland Northwest. In fact, we've made more than $160 million in business loans in the past eight years -- more than any other credit union in the region.
"We're investing in people who invest in the community," says Scott Adkins, vice president of lending. "We look at every deal on its own merits and say, 'Does it make sense?'"
Often, the answer is "yes," even if an applicant with a record of success has been rejected by larger financial institutions for not meeting narrow lending parameters.
Following Mom’s example
Rita Santillanes learned hard work and entrepreneurialism from her mother, Mary Sellers.
Young Rita watched and helped as Mary went from being a waitress to owning a small restaurant. By the time Rita and John Santillanes were newlyweds, her mother was a partner in a Nevada motel. The couple moved to Winnemucca to help run the place.
Fast-forward 20 years. Rita and John own four Best Western Plus Peppertree Inns in Washington. They have 100 employees, half of them at Liberty Lake and Spokane International Airport.
When it was time to refinance three of their hotels, Rita and John came to STCU business loan officer Cheryl Connors.
"I went to several financial institutions, but when I met Cheryl, I stopped looking," Rita says. "She understood our needs."
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Now, the Santillaneses plan a $1 million project to remodel their airport hotel -- work that would put contractors and subcontractors to work during the lean winter months.
"We're convinced there's going to be a lot of growth on the West Plains of Spokane County, Rita says. "We're going to be ready for it."
A business built on spunk
Two years out of high school, photographer Nikki Belyea opened Moxie Images. She quickly built a reputation for putting subjects at ease and capturing fleeting moments.
"Moxie means spontaneity, spunk, and that’s my style," Nikki says.
With an established clientele, Nikki's next business step was acquiring studio space where she could set up lights, umbrellas, soft boxes and reflectors.
Applying for a commercial real estate loan "was really intimidating for somebody my age," Nikki says. Her application was set aside by two financial institutions before she came to STCU.
"They made it easy," she says. "They looked over my financials and saw that I could make it work. It felt like they believed in my business."
Eight years since she founded Moxie, Nikki has carried a camera to more than 200 weddings and helped families celebrate graduations, engagements, pregnancies, babies and events throughout the Northwest.
"Everything is worth capturing," she tells clients. "You don't know if you'll ever have a chance to capture this time again."
Where jewelers go for parts
Russ Nobbs's success in jewelry started with a failure in fudge.
Russ and partners in a candy company leased a booth at New York's 1964 World’s Fair. They didn't recoup expenses, let alone make a profit.
The tiny candy company repaid Russ in beads and other jewelry components it had obtained for another enterprise. He headed west to work fairs and craft shows, and in the 1970s opened Rings & Things in downtown Spokane.
Today, Rings & Things has 60 employees and posts more than $8 million in annual sales, mostly from online customers and at 90 trunk shows nationwide. Russ and his staff search the world for beads created by family operations and factories that treat workers fairly, making frequent trips to China, Indonesia, India and elsewhere.
"We consider ourselves an auto parts store for the jewelry industry," he says.
Russ turned to STCU when it was time to refinance the building where Rings & Things is now located.
"We're a very seasonal business," so an STCU business line of credit helps build inventory before each busy season, Russ says. "Our Christmas rush is September and October."
A neighborly relationship
Crossover Church started with 30 believers who met in a house. They outgrew the house and moved to a grange hall. They outgrew the grange and moved into a church on Hastings Road, adjacent to STCU's North Branch.
"It was sure nice just to walk across the parking lot to do our banking," says Scott Liddell, missions pastor at the church.
As Crossover's congregation grew, STCU was happy to let the church use the credit union parking lot on Sunday mornings, when the branch was closed.
Soon, the congregation outgrew the church building and moved worship services into a school auditorium. Then, they outgrew the school.
Taking a step of faith, church leaders bought 12 acres and came to STCU for a $1.7 million loan for a building they thought would meet the congregation's needs for a decade. But the church grew faster than they expected.
In 2008, Crossover needed more space and STCU provided a loan for a balcony. After that came multipurpose rooms for pre-school, youth and adult classes, again with an STCU loan. More people meant more cars, and the church borrowed from STCU to purchase additional land for parking.
Most recently, STCU has helped Crossover add a family life center with meeting space, classrooms and a multipurpose room for volleyball and other activities.
God only knows what's next for Crossover Church. And STCU is ready to help.
Housing for those in need
Spokane Housing Authority helps 14,000 people from the Palouse to the Canadian border by offering affordable housing options.
Among its properties are two Spokane apartment complexes where a limited partnership hampered the agency's ability to make much-needed improvements. The buildings needed new roofs; aging appliances in the 172 units were inefficient and expensive to maintain; security features were inadequate for tenants who include families and many seniors.
That changed with a $4.9 million commercial loan from STCU. As a result, the agency qualified for a federal program that helps agencies repay interest costs for qualifying loans. The money saved -- about $900,000 -- is funding the needed improvements.
"The residents' homes were enhanced and the STCU financing serves as a significant local stimulus," said Steve Cervantes, executive director of Spokane Housing Authority.
About a year after the loan was complete, Spokane County commissioners asked Scott Adkins to represent them on Spokane Housing Authority's six-person board. Adkins, STCU’s vice president of lending, was so impressed with the agency’s work that he accepted the appointment.
"Not-for-profit credit unions exist to help members, and contribute to the good of the community," Scott says. "So this relationship with Spokane Housing Authority is a perfect match for us."
The average credit union business loan nationwide is $220,000, helping to grow small businesses and to add jobs in the local economy.
Credit unions could do more if Congress would raise the business lending cap from 12.25 percent to 27.5 percent of total assets. That action would free up an estimated $13 billion for business lending and create 140,000 jobs -- at no cost to taxpayers.
Many in Congress support raising the business lending cap and have introduced legislation to enact the change. We'll keep you posted on the progress.
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