Regions
Bank (NYSE:RF) today announced the company exceeded its Alabama
Economic Development Loan Pool commitment for 2013 and will expand its
loan pool commitment in 2014.
“The Alabama Economic Development Loan Pool reflects Regions’ commitment
to serving as the economic development bank of Alabama,” said John
Turner, South Region president for Regions Bank. “We are committed to
helping companies grow and create more jobs. We are providing access to
capital that helps drive business expansion and strengthen our economy.
Already, this loan pool is supporting business growth and new
opportunities for people across the state, and we will build on our
commitment in 2014.”
Regions established the loan pool in February of last year and earmarked
$1 billion to provide economic development capital and support job
growth in Alabama in 2013. In September, Regions exceeded its
billion-dollar commitment. Preliminary estimates show loan pool activity
topped $1.3 billion by the end of the year. Based on initial data
provided by participants, loan pool financing is supporting
approximately 2,000 new jobs in addition to existing jobs at more than
350 companies and entities throughout the state.
For 2014, Regions is renewing and expanding its commitment by earmarking
$1.5 billion for the Alabama Economic Development Loan Pool. The funding
will support businesses and entities that are growing, modernizing or
expanding in Alabama.
“Economic development is truly a partnership among many different
groups,” Governor Robert Bentley said. “Regions Financial made a
significant commitment last year to help Alabama companies continue to
create jobs by establishing a loan pool for companies to have access to
the financial capital needed for growth. I am honored that Regions
Financial is going to extend the loan pool into 2014 and commit an
additional $1.5 billion. This loan pool will help us build on our job
creation efforts, and I appreciate Regions’ commitment to Alabama
businesses.”
Regions works closely with the business community and the Alabama
Department of Commerce to identify projects that could be candidates for
financing.
“Our goal is to help new and existing companies succeed and expand here
in Alabama,” said Alabama Secretary of Commerce Greg Canfield. “In order
for that to happen, companies large and small need access to capital. As
businesses grow, more jobs are created in our communities, and our
entire economy grows stronger.”
Currently, the Alabama Economic Development Loan Pool is fueling growth
and expansions among a variety of employers. Consider these examples:
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Dothan-Houston County Airport Authority:
Alabama landed a major new employer when Commercial Jet announced it
would move into a large hangar facility at the Dothan Regional Airport,
bringing 500 new jobs to the area by the end of 2017.
But before Commercial Jet could begin operations, the hangar needed a
series of renovations and repairs. The Dothan-Houston County Airport
Authority, which was working with local and state leaders to recruit
Commercial Jet to the facility, turned to Regions to help finance the
hangar upgrades. Regions allocated $6 million from the Alabama Economic
Development Loan Pool for the hangar renovation project.
“The whole area pulled together as a team to make this project a
success, and Regions was a valuable part of that team,” said Art Morris,
director of Dothan Regional Airport. “These new jobs will have a very
significant impact on our community.”
Commercial Jet provides commercial aircraft maintenance, repair and
overhaul services and passenger-to-freighter conversions for leading
airlines and aircraft owners around the world.
Based in Metro Birmingham, Deshazo is a family-owned business that
develops high-tech overhead cranes as well as complex robotic systems
for a variety of companies.
Deshazo needed a new facility to increase production and introduce new
services to the marketplace. The company announced an expansion in early
2013. Through the Alabama Economic Development Loan Pool, Regions is
providing financing to support the expansion as Deshazo enhances its
production capacity and hires more employees.
“We’ve been up and running at our new facility since June,” said Phil
Mazur, Deshazo’s vice president of finance. “We have hired 15 new,
full-time employees now and have the capacity to hire up to 50 before
the end of 2014. This is a major project, and there could have been a
lot of headaches, but working with Regions, it hasn’t been difficult at
all.”
Horizon Shipbuilding was founded in 1997 by a father-son team who turned
their passion and skill into a thriving company.
Today, from its headquarters in Bayou la Batre, Horizon designs, builds
and repairs ships, boats and barges for customers around the world.
“We were awarded the largest single contract in our history last year,”
said Travis Short, Horizon’s president and general manager. “That made
it clear it was time to expand.”
Horizon turned to Regions to help finance the expansion with capital
from the Alabama Economic Development Loan Pool. The expansion is
resulting in 127 new jobs.
“Regions Bank had been advising me on potential lending opportunities
and helped me put it all together,” Short said. “We purchased the best
available property and refurbished the dormant shipyard across the bayou
from our present facility. Regions facilitated the loan and made it
possible for Horizon to begin construction in less than 60 days.”
The expansion is helping Horizon grow its marketability for larger
vessels and more projects in the future.
Economic development is not only about new jobs and business expansions.
It is also about providing access to vital services for people in
Alabama communities. Selma Urgent Care was established by emergency room
doctors who recognized a need for greater access to urgent care in a
region that had few options.
“Both my partners were ER physicians and felt the need for immediate
care to bridge the gap between the overloaded ERs and the overbooked
primary care physicians,” Sagar Vadlamudi, co-founder of Selma Urgent
Care explained. “We realized that unless you had an open primary care
physician, you had to drive to Montgomery, Prattville or Birmingham for
immediate medical care short of major trauma. Because of that, we felt
there was a need for more medical care in Selma.”
With funding from Regions’ Alabama Economic Development Loan Pool, Selma
Urgent Care is now able to serve patients not only from Selma, but also
from nearby Chilton, Wilcox and Perry Counties. Vadlamudi’s team is also
developing plans for an urgent care center in Clanton, which recently
lost its only hospital.
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Brindlee Mountain Fire Apparatus:
Nineteen years ago, James Wessel started working as a volunteer
firefighter in North Alabama. He felt it was his calling, and he loved
the excitement. But he also ran into a major challenge.
It wasn’t easy to find a good fire truck.
“Trying to purchase equipment opened my eyes to some of the
inefficiencies and the lack of inventory for used fire trucks,
particularly ones that had warranties,” Wessel explained.
So an idea was born. Wessel founded a company, Brindlee Mountain Fire
Apparatus, which would connect fire-rescue agencies with the life-saving
equipment they need. Since then, his business, located in Union Grove
near Huntsville, has grown to serve departments across the country and
around the world.
Brindlee Mountain Fire Apparatus recently expanded through a line of
credit from Regions’ Alabama Economic Development Loan Pool. The
expansion is helping Wessel increase his inventory to meet the needs of
fire-rescue personnel worldwide.
“That meant everything to us,” Wessel said. “I can’t sell a product that
I don’t have for sale. The only way to accomplish that is to have
credit. And Regions has been a fantastic partner for us.”
Regions Bank is invested in Alabama. A recent study from economic
development researcher Tripp Umbach showed Regions
had an overall $7 billion impact on the Alabama economy in 2012,
supporting nearly 22,000 jobs both directly and indirectly. Also,
Regions recently named Jeff
Rabren to manage economic development initiatives with a focus on
encouraging capital investment and job creation in Alabama. Regions is
Alabama’s only Fortune 500 company and is the largest private employer
in its headquarters city of Birmingham.
Companies interested in learning more about Regions’ Alabama Economic
Development Loan Pool or applying for financing are encouraged to
contact a Regions banker or visit a local branch for a referral.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $117 billion in assets, is
a member of the S&P 500 Index and is one of the nation’s largest
full-service providers of consumer and commercial banking, wealth
management, mortgage, and insurance products and services. Regions
serves customers in 16 states across the South, Midwest and Texas, and
through its subsidiary, Regions Bank, operates approximately 1,700
banking offices and 2,000 ATMs. Additional information about Regions and
its full line of products and services can be found at www.regions.com.
Copyright Business Wire 2014