Ann Arbor Business Monthly July/August 2016 : Page 1

BUSINESS MONTHLY • ann arbor • chelsea • dexter • manchester • milan • saline • whitmore lake • ypsilanti ann arbor area Volume 12, No. 5 July/August 2016 $2.00 Michigan Business Connection Hits One-Half Billion Dollar Milestone By Duane Ramsey Michigan Business Connection of Ann Arbor celebrated the milestone of achieving one-half billion dollars in its managed portfolio through June 1, 2016 by providing commercial loans to businesses through credit unions across the state of Michigan. “Results like these only happen because of great collaboration and teamwork within MBC, between MBC and our credit unions, and between our credit unions with each other,” stated Bill Beardsley, President/CEO of Michigan Business Connection. While the portfolio is only one of several key success measurements, there is simply no better indication of the value MBC provides to Michigan credit unions, or in the trust they place with MBC, than the growth and quality of its loan portfolio, explained Beardsley, who established MBC in 2004. MBC’s commitment to the Michigan business economy is demonstrated through numerous success stories. MBC embodies the true cooperative spirit through its ongoing mission to energize and enable business lending by credit unions throughout the state of Michigan and by doing so, help improve the economic INSIDE: Ann Arbor Family Takes Over Rolling Meadows Golf Course – Page 4 Weber’s Boutique Hotel in Ann Arbor Completed Renovations – Page 5 From left Ken Michalak of Lake Trust Credit Union, Bill Beardsley and Kirk Albert of Michi-gan Business Connection in MBC’s Ann Arbor of fi ce. (Photos by Duane Ramsey). health of Michigan, according to Beardsley. MBC is a credit union service organization (CUSO) leveraging a collaborative effort with more than two dozen af fi liated credit unions. It now helps manage a portfolio of one-half billion dollars in business loans for those fi nancial institutions. “Our annual volume is now more than $100 million. About 50 percent of the volume comes from the CUs directly and we perform the operational aspects of the loan, while the other 50 percent comes from our own efforts,” said Beardsley. Since 2004, MBC has supported Michigan’s small-and medium-sized businesses and real estate investors by underwriting and servicing commercial loans for fi nancial institutions statewide. It primarily serves Michigan credit unions and their members. MBC helps Michigan credit unions share the costs and risks of commercial loan program management. With a full-time staff of experts, it provides traditional credit risk assessment and management services, while also offering customizable front-end business development and loan origination support. “MBC provides the back of fi ce processing and support for making commercial loans through credit unions for as little as $2,000 a month,” said Beardsley. “It costs more than $250,000 per year to run a very basic credit department.” “While many CUSOs have grown with geographic expansion, our focus remains on the markets we know, and delivering value to our CUs through a unique program partnership versus transactional vendorship. Cost and risk sharing is a foundation for sustainable lending and collectively we have proven it,” Beardsley explained. Locally, MBC works with fi ve credit unions providing fi nancial services from 15 locations in the Ann Arbor market. MBC has 25 employees, most who came from area banks, according to Beardsley. One of those credit unions MBC has served and helped to grow is Lake Trust Credit Union based in Brighton. Lake Trust is a $1.6 billion fi nancial institution serving more than 167,000 members with 21 branches stretching from Lake Michigan to the west, Lake Huron to north and Lake Erie to the east. “Lake Trust has been the model credit union for us. They did not have one business loan 12 years ago but now have more than $150 million (in loans),” MBC (Continued Page 3) Small Business & The Internet By Mike Gould “Microsoft Buys LinkedIn -WTF?” – Page 8 Business Briefs – Pages 9-11 Social Security Funded Until 2034 – Page 12 Place Your Advertising In the Pages of ann arbor area BUSINESS MONTHLY September 2016 U-M IMPACT Edition Deadline: August 25 ann arbor area BUSINESS MONTHLY P. O. Box 460 Hamburg, MI 48139-0460 PRSRT STD US POSTAGE PAID ST JOSEPH MI PERMIT #335

Michigan Business Connection Hits One-Half Billion Dollar Milestone

Duane Ramsey


Michigan Business Connection of Ann Arbor celebrated the milestone of achieving one-half billion dollars in its managed portfolio through June 1, 2016 by providing commercial loans to businesses through credit unions across the state of Michigan.

“Results like these only happen because of great collaboration and teamwork within MBC, between MBC and our credit unions, and between our credit unions with each other,” stated Bill Beardsley, President/CEO of Michigan Business Connection.

While the portfolio is only one of several key success measurements, there is simply no better indication of the value MBC provides to Michigan credit unions, or in the trust they place with MBC, than the growth and quality of its loan portfolio, explained Beardsley, who established MBC in 2004.

MBC’s commitment to the Michigan business economy is demonstrated through numerous success stories. MBC embodies the true cooperative spirit through its ongoing mission to energize and enable business lending by credit unions throughout the state of Michigan and by doing so, help improve the economic health of Michigan, according to Beardsley.

MBC is a credit union service organization (CUSO) leveraging a collaborative effort with more than two dozen affiliated credit unions. It now helps manage a portfolio of one-half billion dollars in business loans for those financial institutions.

“Our annual volume is now more than $100 million. About 50 percent of the volume comes from the CUs directly and we perform the operational aspects of the loan, while the other 50 percent comes from our own efforts,” said Beardsley.

Since 2004, MBC has supported Michigan’s small- and medium-sized businesses and real estate investors by underwriting and servicing commercial loans for financial institutions statewide. It primarily serves Michigan credit unions and their members.

MBC helps Michigan credit unions share the costs and risks of commercial loan program management. With a full-time staff of experts, it provides traditional credit risk assessment and management services, while also offering customizable frontend business development and loan origination support.

“MBC provides the back office processing and support for making commercial loans through credit unions for as little as $2,000 a month,” said Beardsley. “It costs more than $250,000 per year to run a very basic credit department.”

“While many CUSOs have grown with geographic expansion, our focus remains on the markets we know, and delivering value to our CUs through a unique program partnership versus transactional vendorship. Cost and risk sharing is a foundation for sustainable lending and collectively we have proven it,” Beardsley explained.

Locally, MBC works with five credit unions providing financial services from 15 locations in the Ann Arbor market. MBC has 25 employees, most who came from area banks, according to Beardsley.

One of those credit unions MBC has served and helped to grow is Lake Trust Credit Union based in Brighton. Lake Trust is a $1.6 billion financial institution serving more than 167,000 members with 21 branches stretching from Lake Michigan to the west, Lake Huron to north and Lake Erie to the east.

“Lake Trust has been the model credit union for us. They did not have one business loan 12 years ago but now have more than $150 million (in loans),” said Beardsley. “Lake Trust was one of the first credit unions to take advantage of MBC and the services it provides.”

“MBC started with a great foundation. It’s a model that has proven itself over time,” said Ken Michalak, assistant vice president, commercial lending, at Lake Trust Credit Union, one of the founders and owners of MBC. “The business community likes having the option businesses have for commercial loans from credit unions.”

“Credit unions are today what community banks were to business 30 years ago. They are committed to filling the void in the market left by community banks,” said Beardsley, who has a banking background with KeyBank in Ann Arbor.

“It’s ironic that credit unions are using the old successful banking model to provide commercial loans to businesses,” Michalak said.

“Credit Unions were able to step up and find success making business loans in their community,” said Kirk Albert, senior vice president, commercial banking at MBC.

Albert recently joined MBC to lead its team of commercial lenders to bring borrowers to the credit union market. He previously served as president of KeyBank in Ann Arbor and has 24 years of banking experience.

Lake Trust helped a local chiropractor expand his business in Brighton by providing commercial loans for equipment, a real estate purchase, and renovations.

Eric Duncan obtained a loan for $1.4 million to purchase an existing building in Brighton with four suites and renovate it to provide a new home for Duncan Chiropractic and three other medical-related businesses. He purchased equipment and a sign for his practice with an additional loan for $30,000.

“We had a relationship with them (Lake Trust) in the community and liked their customer service,” said Duncan, who worked with Larry Gass, a commercial relationship manager at Lake Trust, on the loans.

Mike Cattell, owner of Milan Self Storage in Milan, obtained a loan from Lake Trust and MBC to refinance an existing loan he had for his business with one of the large banks in Ann Arbor. The loan for $550,000 helped him to refinance and expand his selfstorage business.

Cattell was referred to Lake Trust by one of his financial advisors and built a friendship with them. He said he obtained the loan with an interest rate one point lower than the bank.

“It’s worked well for me. They liked how I operate my business and want to work with people who are the fabric of their community. MBC did a good job servicing the loan,” Cattell said about his relationship with Lake Trust and MBC. “They have made a real market niche for themselves.”

Lake Trust is one the largest credit unions in Michigan and ranks in the top one percent of credit unions nationwide. It recently opened its new $30 million corporate headquarters in Brighton with the help of Ann Arbor SPARK.

Lake Trust operates two branches in Ann Arbor on Packard and West Stadium with other branches in Brighton, Chelsea, Howell, Detroit, Lansing, Holland to the west and Mount Pleasant to the north.

The University of Michigan Credit Union is MBC’s newest credit union partner having recently launched its commercial loan program. Beardsley said “we look for great things to come from them.”

Paul and Terry Matlock, who have owned and operated the Terry Matlock School of Performing Arts in Grand Blanc since 1973, received one of the first loans from UMCU and MBC.

The couple had been members of the local Family Community Credit Union for many years when it was recently purchased by the UM Credit Union. The local manager, who remained with the credit union, brought the possibility of getting a commercial loan through them, Paul explained.

“We wanted to be loyal to the local credit union and were surprised when they could offer us a better loan and rate,” Paul said.

The credit union connected them with the people at MBC who handled the loan process for refinancing the couple’s family business.

The Matlocks, who previously had a commercial loan with a large bank, were able to obtain a 10-year loan without any interest rate increase to refinance their dance school and daycare business. They have 65 employees and 250 participants or customers at their two locations in the Grand Blanc community.

MBC also works with the Construction Federal Credit Union, DFCU Financial, and Michigan Education Credit Union in the Ann Arbor market, according to Beardsley.

Read the full article at http://digitaleditions.walsworthprintgroup.com/article/Michigan+Business+Connection+Hits+One-Half+Billion+Dollar+Milestone/2528436/318434/article.html.

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