The time is now
Beach Business Bank founding president Robert Franko.
by Robert Franko
A year ago, for Progress 2011, I wrote about “The Start of a Virtuous Cycle” as the economy was beginning to recover.
Clearly, the South Bay has experienced a vibrant recovery. Homes are selling again. Prices have stopped falling. There have been some eye-popping prices for home sales in the local market. There aren’t nearly enough new homes to meet the demand. We are fortunate to be close to this beautiful coastline in some of the finest cities in the world. Our citizens are feeling good about the future.
This recovery has been fueled in large part by the banks, which are making new loans, at record low interest rates, to revive the businesses that might have struggled, and to help start new ventures. Banks are anxious to lend money to good prospects with a solid business plan and strong credit support. Small businesses account for the lion’s share of new jobs created in the United States. The Federal Reserve has kept interest rates at the lowest levels known in our lifetime. With each new and revitalized business, people are getting back into the job market, spending their money and leading an economic recovery.
Beach Business Bank will celebrate its eighth birthday on June 1. At our ribbon cutting on the day we opened in 2004, we were a $10 million bank. In less than eight years, we have grown to more than $300 million. We have thousands of relationships in the South Bay and throughout Southern California. Our brand of banking has always been personal, one client at a time. We make every effort to be the banking partner that our business clients need in good times and bad.
This past year, we convinced our landlord and the city to let us put our name on the Rosecrans Avenue side of our building. Soon, we will have access to a larger pool of capital, which will allow us to make larger loans to local businesses. But, whether it is a $25,000 line of credit or a $10 million complex credit facility, we look at each client individually. There is an old banker’s adage that it is the character of your client that ultimately gets you repaid. We are so fortunate to be in the South Bay with so many people of the highest character and great business models.
In our eight years, we have seen tremendous teamwork in this community. When California cut the budget for our schools, Beach Business Bank, along with many other local banks and businesses stepped up to provide extra support for the local community education foundations. The American spirit is resilient and proactive. We are goal-driven. Give us a problem and we will find a solution.
A year ago, I said that 2011 would be the year when the local businesses got back to business. That happened. Already, the tone is so much better. Folks who could not find work two years ago are working again and feeling a sense of pride. Entrepreneurs are rising up in every industry. Despite inertia in Washington and Sacramento, we are working together in our South Bay community to rebuild an even stronger local economy.
Interest rates have never been this low. Working people are busy every day. Productivity is rising. Restaurants, such as MB Post and The Strand House have gone from an idea to a tremendous success in the past year. We have experienced a mild winter with many visitors spurring the local economy. The Dodgers have just been sold for a record price and the Angels acquired the greatest player in baseball. In addition to all that we do when and where we work, we have plenty to keep us busy in our free time.
From a gradual start last year, I see this virtuous cycle of success gaining momentum this year. The South Bay is recovering much more rapidly than the rest of the state and the nation. California has a reputation as the leader for pulling the U.S. out of a recession and this time it looks like we will be doing it again. If you were waiting for the signs of improvement, now is the time to get moving. Best wishes for another exciting year of growth and progress.
Robert Franko is the founding president of Beach Business Bank.