Independent Banker - August 2017 - 91

management and economics relevant
to their fi nancial situations, " co-CEO
Skaff says.
But could CDFI funding be under
threat? The Trump administration's
proposed 2018 budget, released in
March, would drastically reduce
CDFI funding. Mehlum says a key
strategic goal of CDFI is to develop
metrics to better quantify the economic
impact of CDFI funding.
" More general education about the
benefi ts of the CDFI Fund to small
businesses will help ensure its continued
funding and growth, " she says.
CDFIs leverage $12 of private capital
for every $1 of public investment.
Skaff points out it's an effective way
for the government to create jobs,
grow businesses and build livable
communities. " We need to continue
to wave the fl ag related to the value
provided for our communities by
the CDFI programs, push the opportunity
and advocate for a fulsome
allocation to the CDFI programs in
the 2018 federal budget. "
Susan Thomas Springer is a writer
in Oregon.
CDFI success story:
North River Boats
Brent Hutchings had big dreams for North River Boats when he became
CEO in 2012.
It's headquartered in Roseburg, Ore., near the Umpqua River, a worldclass
waterway for fi shing, kayaking and rafting. Naturally, many North
River Boats employees love to design and craft fi shing boats and set them
afl oat on the Umpqua.
The economic recession came close to drowning the company. " Finding
fi nancing to buy the company was somewhat challenging, given the lack of
operating history under new ownership, " Hutchings says.
Help came from the Oakland, Calif., Benefi cial State Bank, which provided
debt fi nancing that allowed Hutchings to buy the company in 2014. Compared
with other fi nancing options, Hutchings says Benefi cial provided a
larger and more fl exible debt facility, giving him more comfort in his decision.
The company revenue has tripled since 2012 and more than doubled
employment to 132 employees, making North River among the largest
private employers in town. In April 2017, Benefi cial also fi nanced
a multimillion-dollar employee stock ownership plan (ESOP) to meet
Hutchings' desire for his employees to share in the company's success.
Benefi cial won the ESOP transaction fi nancing over two nationwide banks
thanks to " greater fl exibility and more dry powder. " Hutchings also credits
Benefi cial's bankers for taking the time to learn about his business so they
understood how an ESOP would be a win for the Roseburg community as
well as for the business.
Today, North River builds 350 boats a year, ranging from $50,000
recreational boats to $2 million commercial vessels, including Alaskan
whale-watching boats and government vessels for the Navy and
Coast Guard.
New owners-North River Boats CEO Brent Hutchings; his wife, Chrys; and Beneficial State Bank banker Matt
Anderson (front, center) with North River Boats employees just after the employee stock ownership plan announcement.
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