SBA News Release – For Mark Peterson, president of Bridgeway Capital, the adage “History repeats itself” has come full-circle.
“I read a lot of history and history has lots of examples of people who provided capital and changed the world,” he said. So when Peterson started the Community Loan Fund of Southwestern Pennsylvania in 1990, he wanted to change the way small businesses receive funding. The idea worked, as some 20 years later Peterson was selected as the Small Business Administration’s (SBA) 2010 National Financial Services Champion of the Year.
The champion began his quest by winning at the district office-level, when he was chosen as the Pittsburgh District’s Financial Services Champion of the Year. He and 68 other district winners then had their nominations forwarded to their respective regional offices – in Peterson’s case, Region 3 consisting of districts in Delaware, Philadelphia, Pittsburgh, Maryland, Virginia, Washington, D.C., and West Virginia. After becoming the regional winner, one of 10 throughout the country, Peterson’s package was sent to Washington, D.C. for the national competition and he was selected as the National Financial Services Champion of the Year. For Peterson, about the only position he’s held that didn’t include assisting others was cooking hot dogs and french fries at the Original Hot Dog Shop in Oakland. Since then, he’s been an advocate for the elderly and, since 1990, a champion for small business owners.
“Because of the collapse of the steel industry it was important for me to get money into the hands of small businesses and grow the region,” Peterson explained.
Not only did the region grow, but, so did Peterson’s endeavor.
“I started with a balance sheet of $2,500 and was the sole employee in our office that was a converted convent on Pittsburgh’s South Side,” he said smiling. “I was hired as a consultant with a year-to-year contract. I had a young family and was worried that the fund might not succeed.”
With the help of The Religious Leadership Forum, Peterson was able to secure an additional $2 million from a host of regional religious groups in order to pump additional funds into the community. “They made loans to us and we paid back the principle and interest.”
Fast-forward to 2010 and Peterson has changed the name of his financial group to Bridgeway Capital, employs a staff of 15 and wrote 83 loans in 2009.
“Inquires were up 63 percent last year, we’ve increased our technical assistance and have a CPA, graphic designer and business coach that we assign to each borrower,” Peterson explained. “We get many of our referrals through banks because since credit standards have steepened, a banker who really wants to help a client will refer them to us.”
Carl Knoblock, Pittsburgh SBA district director, stated that Peterson’s organization truly is achieving economic development for the region. “They are so diverse, and run the whole gamut from microloans to certified development company loans,” he stated. “They aren’t niche-based because they offer their loans outside of Allegheny County.”
Bridgeway Capital currently services 15 counties, with staff members meeting and assisting each borrower. The lending group is a referral-based business and strives to work with local financial institutions, community organizations and the SBA. Currently, Bridgeway oversees assets of $53 million.
“I always wanted to run a fund that had a large impact and was really surprised to find out I was the Financial Services Champion of the Year,” Peterson stated. “This award means we can really take our concept and share it with the nation, and have more capital available for small businesses to grow the economy.”
Peterson will soon head to Washington, D.C. for the 47th annual celebration of National Small Business Week to attend a series of galas and events as the National Financial Services Champion of the Year.
He and eight other local small business owners and advocates also will be lauded at the Western Pennsylvania SBA May 28th Awards Luncheon which will be held at the Sheraton Station Square Hotel Pittsburgh. The local luncheon is held in conjunction with annual celebration of National Small Business Week.
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