Customer Closeup Funding a Pattern of Success

The economic downturn is not foreign to Rick Shields and his family.  After purchasing The Quilting House in 1989, Shields has had to apply for a few Small Business Administration loans to help build and maintain his family’s business.  Today, the Quilting House is one of Orange County’s top manufacturing and production companies of wholesale custom bedding and accessories for designers of residential interiors, model home and commercial projects. From a peak of 51 employees when times were better, the company now has a staff of 11 and for the past year, it has been using its savings to keep its operation going.

“We are a victim of this downturn,” says Shields. “Our business is off 60 percent.”

The growth of the real estate industry during the past decade helped propel The Quilting House into a flourishing business. Every year, it executed thousands of custom residential orders, as well as a few hundred model home projects. One feature of its success has been the company's ability to provide excellent customer service and a consistent quality product. They also have the ability to track every order daily with a computerized production and tracking system. Another is its full service shipping department.

Despite a successful track record, a history of profits and a near perfect credit score, Shields could not get a new loan recently to help his company weather the downturn.  He had approached a few larger, well-known banks, but was turned away. And one of those banks was already doing business with Shields. That was where The Quilting House had its business checking account.

Looking for more options, a friend and business contact introduced Shields to the SBA team at Plaza Bank, an Irvine-based commercial bank that focuses on serving small and mid-sized businesses.  Shields discovered that Plaza has extensive expertise in the Orange County business community and an experienced SBA loan team. Underscoring its commitment to the community, Plaza specializes in lending for owner-occupied commercial real estate.

Once at Plaza, Shields was not only impressed with the bank but he also got his loan.

“I’m so appreciative of what the bank has done to support our business and our family,” Shields says. “I’ve done several loans over the years and I have never been as comfortable as I was with the team who helped me at Plaza Bank.”

Robert Forsythe, the head of Plaza’s SBA unit, says the Federal government began offering a lifeline to small businesses like The Quilting Company in March.  That portion of the federal stimulus package reduced loan rates and eliminated loan fees, and offered businesses greater financing and negotiating power.  Forsythe says this initiative has enabled banks like Plaza to lend to more small and mid-size businesses in need.

 “In the past, the rates were quite high and the SBA charged a fee that ran from 2 to 2.5 percent of the gross loan amount,” Forsythe says.   “The SBA had to ration the amount of lending that they guaranteed.  Now, the SBA has given us and our customers more options.”

Forsythe says all of these changes have helped businesses get new loans, He also believes it has had an immediate and positive impact on the economy here in Orange County.

“I think the government did the right thing,” says Forsythe.  “Over the past four to six weeks, we are seeing loan volumes increase. And people are a little less scared than they were four or five months ago.”

With a helping hand from Plaza Bank, Shields is optimistic about the future of his business.

“They believed in our business when other banks turned us away,” he says.  “Their honesty, personal attention and professionalism definitely put the bank above the rest and for that I will always be grateful.”

Click here to visit The Quilting House website.