More than 170 people from area banks, education institutions, and foundations attended Bridgeway Capital’s recent annual meeting, “From Ideas to Impact,” at the Circuit Center and Ballroom in the South Side on Tuesday, Nov. 18. The meeting focused on growing entrepreneurship in spite of the current recession, Bridgeway Capital’s role in today’s economy, and its strategies for impacting western Pennsylvania.

To emphasize Bridgeway Capital’s recent transformation and its economic impact, the event included its first-ever Borrower Showcase, with seven growing businesses and ample networking opportunities for guests. Businesses included Ben Sawyer Excavating, Bocktown Beer & Grill, Castle Co-Packers, Chuck’s Quality Painting, MR Medical Solutions, Parental Stress Center, and Patricia Ellis State Farm Insurance.

As the meeting began, guests learned how Bridgeway Capital was started in 1990 to respond to another economic crisis – the steel industry collapse. Today, it is better equipped to respond to the region’s needs and will have an even greater impact.

“Western Pennsylvania can support its own entrepreneurs. We can develop our own entrepreneurial talent and develop a new generation of growing businesses,” said Mark Peterson, President of Bridgeway Capital.  According to Mr. Peterson, Bridgeway Capital offers one solution – a pool of capital dedicated to the region’s future and committed to growing the regional economy.

To achieve greater impact, Bridgeway Capital approved a new 5-year plan. The strategies include increasing financing, educating entrepreneurs, and improving awareness. While developing the strategic plan, Bridgeway Capital sent a survey to 400 of its stakeholders – 40 percent of respondents identified the confusing nature of the name CL Fund, and many others did not understand the organization's purpose and products. A new brand that better reflected Bridgeway Capital’s mission and strategies was necessary.

Mr. Peterson described the process of moving from CL Fund to Bridgeway Capital, and how Bridgeway Capital is literally “bridging the way” from entrepreneurial ideas to economic impact. He emphasized that while the name is new, it represents the organization it has always been. Mr. Peterson also recognized that the new name and accompanying brand are only the first steps in reaching the organization's economic goals.

One of organization’s key goals is to increase financing. Bridgeway Capital raised $4.4 million in 2008, and plans to provide $84 million in financing over the next five years. “Our financial soundness advances our mission,” said Mr. Peterson. “It boosts our ability to make higher risk loans to move western Pennsylvania forward.” By tracking the social impact of its loans – like benefits to low income people, jobs created and retained, and financing of minority- and women-owned businesses – Bridgeway Capital can continually monitor the effectiveness of its financing.

Keith Crytzer, Chairperson of Bridgeway Capital’s Board of Directors, spoke about Bridgeway Capital’s current social and financial impact. He stated that in FY 2008, the organization placed 60 loans for $8.7 million, helped create and retain 568 jobs, and that 68 percent of the lending benefited low-income people. Since 1991, Bridgeway Capital has made 500 loans for $55.5 million, enabling 4,400 jobs to be created and preserved. From 2004 – 2008, the organization doubled its assets under management to $51.2 million.  Mr. Crytzer also mentioned the growing need for available credit. Inquiries for loans at Bridgeway Capital rose from $11.2 million in 2007 to $17.9 million in 2008.

Next, Bill Hershman, Executive Vice President of Bridgeway Capital, spoke about educating entrepreneurs. Recently, Bridgeway Capital hired Tania Bikerman as the Business Education Coordinator. Ms. Bikerman provides business coaching, education opportunities, and assessments of each current business borrower. Other initiatives include interest rate incentives for new borrowers, business education opportunities, and a future mentoring program. Ideally, the business coaching and incentive programs will give small business borrowers a greater chance of being successful.

To convey the power of transforming an idea into impact, Bridgeway Capital’s loan officers shared success stories of three businesses. Mom’s Care Christian Daycare was started in 1990, grew over the years and currently has a waiting list. Charlene Myers, owner of Mom’s Care, is now opening a location on the Northside of Pittsburgh with financing from Bridgeway Capital and Northside Community Development Fund. The daycare has 20 children currently, and expects to triple attendance over the next couple years. Jadell Minniefield Construction Services specializes in demolition, excavating and dumpster hauling. With a working capital loan and financing for a new truck to haul dumpsters, the company continues to grow and now has over $1 million in contracts with the City of Pittsburgh. Detail King was started in the 1980s as a traditional auto detailing business. Today, the company educates others on how to open a detailing business and has expanded to include an authorized licensee program where people can use Detail King’s promotional materials, informational cds, etc. More than 300 people participate in its educational programs.

To recognize its partners, Bridgeway Capital gave its 2008 Impact Award to Lisa Rucker, Vice President at National City Bank, for her commitment to small businesses and SBA lending. Other lending partners were also recognized through the program, including Melanie Ansell, Enterprise Bank; David Carcy, National City Bank; Terry Farrell, First Commonwealth Bank; Robert Krzeminski, Northwest Savings Bank; Mike O’Donnell, National City Bank; and Marcia Wood, Fidelity Bank.

The meeting closed with a reminder that improving awareness is essential. Bridgeway Capital hopes to work with new partners, get more referrals, grow small businesses and transform the regional economy. By educating, informing and expanding the network of stakeholders, Bridgeway Capital can create champions for small business growth.

“Our challenge is new growth for the region and pursuing this challenge in the face of a tough economy,” said Mr. Peterson. “While we cannot solve the problems of the global economy, we can be part of the solution in our hometown. Together, we can transform western Pennsylvania into a thriving region for all.”