“Economic impact is at the core of our mission, our efforts, every decision we make and each business we finance,” said Mark Peterson, President of CL Fund. “By focusing on growing small businesses and providing them with available, flexible financing, we can help drive economic growth in western Pennsylvania.”

 

During the meeting, the guests learned that the economic health of Pittsburgh and its surrounding regions does not compare favorably with other areas – under one economic performance index – which measures growth in jobs, wages and salaries, and technology output over a 5-year period – Pittsburgh ranked 176 and Erie ranked 181 out of the 200 largest metropolitan areas in the U.S. Pittsburgh actually fell 35 places and Erie fell 26 places in the ranking from 2005 – 2007 (Best Performing Cities 2007: Where America’s Jobs are Created and Sustained,” Milken Institute, September 2007). 

 

According to Mr. Peterson, the departure of the U.S. Airways hub from the region shows that large corporations are more and more susceptible to the changes in the global economy. Instead of pursuing large companies with large and less effective public subsidies, CL Fund focuses on local businesses that make greater contributions to job growth and a healthy economy. 

 

“We provide flexible financing to help small businesses overcome one of their most daunting obstacles – sufficient financing for working capital,” said Mr. Peterson.

 

Mr. Dwight Mayo, President of Transportation Solutions located in Uptown, spoke briefly during the meeting about his company’s growth efforts and the importance of taking a risk with small businesses. “I’m here today because I support what CL Fund’s trying to do with other small businesses, and I know how they helped me grow. We need more financial institutions to take a risk, and to focus on helping businesses in Pittsburgh’s inner city,” said Mr. Mayo. Transportation Solutions started with only 4 vehicles; today they have 90 vehicles and close to 100 employees.

 

Throughout the meeting, CL Fund discussed various components that contribute to economic impact; primarily, its lending capital, which comes from various investments and grants; its partners who help with loans and assist the small businesses; and its small business borrowers, who directly create the jobs necessary to grow the region. 

 

In FY 2007, CL Fund raised more than $9.4 million in lending capital through investments and grants from PNC, Citizens Bank, National City, the U.S. Small Business Administration, the Heinz Endowments, and other organizations.   Over the years, this type of capital has helped CL Fund make 435 loans, totaling $46.8 million since inception, and leveraging $184 million for borrowers. Since 2001, it has also helped to preserve and create 2,800 jobs.

 

During the meeting, Mr. Peterson discussed how CL Fund partners with various organizations to assess economic needs and financing solutions. Partnerships with the PowerLink, SCORE and the local small business

 

development centers help businesses to focus on viable ways to grow and succeed. One of CL Fund’s most recent partnerships is with MWELA – the Minority and Women Educational Labor Agency. Through this partnership, MWELA provides a bond-guarantee program for minority contractors to support bidding on large projects, as well as pre-apprenticeship training, and CL Fund provides working capital financing for the contractors.  

 

To further convey impact in action, CL Fund’s loan officers presented success stories from our highlighted borrowers. L&S Machine Company, located in Latrobe, Penn., manufactures and services fuel components for the commercial nuclear industry – since working with CL Fund, the company has preserved and created 90 jobs and has become the sole supplier for fuel nozzles in the U.S. for Westinghouse. MR Medical is making good progress in the MRI technology industry. A start-up company with extensive experience in the MRI field, the company manufactures and services coils and preamplifiers for MRIs. An MRI is very time consuming; with their technology, they hope to meet the industry’s goal of 5 minutes or less as they continue to grow. Baden Insurance Services is a great example of an entrepreneur looking to launch her dream venture. With CL Fund’s entrepreneur loan and the strong dedication of the owner, the company is already thriving and hopes to add a few jobs and services in the next couple of years.

 

To recognize our partners’ dedication, CL Fund awarded Jennifer Hergenroeder Lunden, an attorney with Hergenroeder Rega & Sommer, with its 2007 Impact Award for her commitment to economic development. 

 

CL Fund also recognized seven 504 lending partners; they included Melanie Ansell, Enterprise Bank; Bob Drelick, National City Bank; Brian Hulme, ESB; Todd Maugans, California Bank & Trust; Dave Miller, Enterprise Bank; Rachele Paulone, Northwest Savings Bank; and Dave Wheaton, Irwin Bank.

  

With several Board members’ terms coming to a close, CL Fund thanked and recognized each of them for their outstanding commitment to economicdevelopment in western Pennsylvania. The exiting Board members include: Deborah Moses, Fifth Third Bank (formerly with PowerLink); Keith Alves, Citizens Bank; Robert Danenberg, Robert M. Danenberg & Associates; William M. Elliott, Jr., Dollar Bank; David Kahley, The Progress Fund; Andrew Kuzneski III, Kuzneski Financial Group; and Raymond Vargo, University of Pittsburgh, Institute for Entrepreneurial Excellence.

 

The meeting closed by reiterating that CL Fund and other organizations can impact western Pennsylvania’s economy by creating and preserving jobs, fostering entrepreneurial opportunities, and concentrating on results.

 

“True, sustainable impact is something CL Fund pursues on a daily basis. 

We are focusing our future efforts and strategy on how best to create that impact, and will work with you to leverage that impact the best way we can,” said Mr. Peterson.