After years of determination, hard work, and personal dedication, owners of the Austin eastside Heywood Hotel relished their success in a Grand Opening celebration on Tuesday, February 7, 2012.  In attendance were City Council Member Mike Martinez, architects from KRDB, representatives from iON Constructors and Waterstreet Engineering, lenders from both project financing firms, and many family, friends, neighbors, press, and local supporters.

Following the meet-and-greet, City Council Member Mike Martinez, on behalf of Mayor Lee Leffingwell, presented the owners, Kathy Setzer and George Reynolds, with a certificate proclaiming February 7 as Heywood Hotel day in Austin!  Since their official opening in January, Heywood Hotel has consistently stayed busy, already selling out for the upcoming SXSW Festival.

As proponents of buying local, Kathy and George furnished and decorated the inn with as many local pieces as possible – some of which are even for sale to guests.  While the couple realized their dreams in this quaint, yet modern inn, they were not the only ones to do so.  Until the opening of Heywood Hotel, the neighborhood of east Cesar Chavez did not contain lodging for the businesses located throughout the eastside.  With their opening, Kathy and George fulfilled a need while managing to keep consistent with the feel of family that exists within the eastside small business community.

Congratulations to Kathy Setzer and George Reynolds, as well as the staff of Heywood Hotel, on a successful opening and prosperous start to a well-deserved local business.

Austin among top 12 metros that grew jobs in past decade   

Austin is one of 11 metropolitan areas in the Sunbelt to post job gains in the past decade, according to an analysis of preliminary data from the U.S. Bureau of Labor Statistics.

The Business Journals’ On Numbers determined that only 12 of the nation’s biggest 100 metro areas showed positive job growth during that time, with Houston leading the way with 236,700 private-sector jobs added since 2001.

Austin had the seventh-best record by adding 75,400 jobs in the decade, from an average 533,700 in 2001 to 609,100 last year.

The only non-Sunbelt metro area in the top 12 was Washington, D.C., finishing second with an increase of 158,300 private-sector jobs in the past 10 years.

Dallas-Fort Worth and San Antonio were also listed in the top 10, adding 79,300 and 75,800 jobs, respectively.

By percentage gains, Austin added 14.13 percent more jobs between 2001 and 2011. This is the third-largest percentage increase in the nation after McAllen-Edinburg and Provo, Utah, respectively.

The On Numbers’ database includes a comparison of the 2011 estimates and the official 2001 totals for all 100 markets.

–Austin Business Journal (article)

Small Business Exports Edge Up

Small businesses have increased their share of exports in the two years since President Obama set a goal to double U.S. sales abroad by 2015, according to new federal data.

Companies with fewer than 500 employees accounted for 35 percent of exports in the third quarter of 2011, according to preliminary figures from the Census Bureau, up from about 32.8 percent in 2009. The figure, from a report set to be released in April, refers only to sales of goods, not services.

“Ninety-eight percent of U.S. exporters are small and medium-sized enterprises but these exporters have historically represented only 30 percent of U.S. export value,” Tim Truman, a spokesman for the Commerce Department’s International Trade Association, said in an email.

The increase follows a two-year government effort to expand the reach of American companies by increasing trade financing and technical help to businesses that want to export.

Read full article from Businessweek.com, here.

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Frost Bank receives A+ credit rating from S&P

Standard & Poor’s has raised its long-term rating on Frost Bank to A+, making the
Texas-based financial institution one of the highest-ranked banks in the nation. S&P cited Frost’s “strong capital, excellent liquidity, consistent profitability and solid credit performance relative to peers” reinforced by the company’s “conservative strategy and solid market position in Texas.”

The A+ rating is the highest ever received by Frost Bank, placing it in an elite group of financial institutions with an A+ rating. S&P also raised its long-term issuer credit on Cullen/Frost Bankers Inc., the holding company of Frost Bank, to A and affirmed its A-1 short-term rating on Frost Bank with a stable outlook on both the holding company and the bank.

S&P attributed Frost’s track record of stable, consistent earnings through the economic
cycles to the company’s relationship-oriented strategy, which focuses on long-time customers in local markets. S&P also acknowledged Frost’s long-tenured management for maintaining the company’s strong and conservative lending standards during the recent recession.

“The A+ rating is a validation of our culture, our people and our way of doing business,” Cullen/Frost Bankers Chairman and CEO Dick Evans.

(Texas Banking, January 2012, page 18)

Austin startups to compete in local olympics

Eight of Austin’s startup companies will compete in the first Austin Startup Olympics event on Jan. 21.

Adlucent LLC, Boundless Network Inc., BuildASign.com, Mass Relevance Inc., SpareFoot Inc., Spredfast Inc., uShip Inc. and WhaleShark Media Inc. will take part in the five-hour, 10-event competition that will include ping pong, foosball, shuffleboard and an obstacle course, among other games.

Each startup company chose a charity organization to award its winning money following the event.

Organizers of Austin Startup Olympics have also extended a challenge to Silicon Valley, encouraging startups not based in Austin to come to the SXSW Interactive conference beginning March 9 to exchange ideas.

The olympics will be held at 205 Brazos St. at uShip’s headquarters.

–Read article from the Austin Business Journal here.

SBA Program Helps to Bridge the Small Business Gap

The U.S. Small Business Administration’s national network of Small Business Development Centers (SBDCs) plays an essential role in the economic development of their states and local communities through their direct, face-to-face counseling for small businesses, according to a report released today by the SBA.  The report, produced by the National Small Business Development Center Advisory Board, focuses on SBDCs’ impact on small business access to SBA’s programs and services, including access to SBA capital, procurement, disaster and international trade programs.

“SBA’s Small Business Development Centers give new and growing small businesses the resources they need throughout the year to grow and create jobs,” said SBA Administrator Karen Mills.  “The soundness of our economy depends on stable small businesses across the country and SBDCs are front and center helping entrepreneurs start, grow and expand their companies. These institutions reflect the diversity and individuality of their nearly 900 home towns and play an active and vital role in those.”

The report confirms that SBA’s SBDC program remains an essential part of the agency’s mission to help small businesses.  The report, The SBDC Program: An Indispensable Partner in America’s Economic Development, demonstrates statistically the prolonged impact that SBA-funded SBDCs have on the formation and growth of small businesses.  The report can be viewed online at http://www.sba.gov/sites/default/files/White%20Paper%20-%20FINAL%20-%2007-15-2011.pdf.

A key finding of the report is that SBDCs help local economies by improving the odds for startup small businesses. “SBDCs,” the report says, “are solely focused on creating and supporting small businesses which in turn pay taxes, provide employment and diversify the economic base for their states… The businesses that work with the SBDCs are the job creators and enterprises that have the potential for survival and growth.”

The report also highlights the effectiveness of SBDC counseling in improving the chances of small businesses that are seeking credit. “SBDCs have intimate knowledge of what lenders really want and need from borrowers to increase the likelihood of them being able to make a loan. The SBDC Business Advisors provide solid technical expertise to coach borrowers through the lending process.”

The report found that the 900 SBDC service locations provide a necessary local footprint in the communities they serve, delivering unique offerings tailored to the needs of its small business community.

The report also found that the SBDC program, for which the federal government covers half the cost, remains one of the government’s best investments because of its close associations with other SBA resource partners, federal, state and local government small business assistance programs and service providers; universities and community colleges; and private enterprise and local nonprofit economic development organizations.

The nine-member independent advisory board provides advice and counsel to the SBA Administrator and associate administrator for the Office of Small Business Development Centers on the SBDC program.

Last year, more than 557,000 entrepreneurs received business advice and technical assistance through the SBDC program.  In its more than 30-year history, SBDCs have assisted millions of small business owners and entrepreneurs to successfully start and grow small firms by fostering entrepreneurship and growth through innovation and efficiency.

–U.S. Small Business Administration (Article found here)

The U.S. economy will stay on a path of moderate prosperity in 2012, with low inflation and steady job growth, according to group of economists from the largest U.S. banks.

The Economic Advisory Committee of the American Bankers Association said Thursday that inflation-adjusted GDP growth rose 2.5 percent in the second half of last year, and that 2012 should see similar growth.

U.S. employers should boost payrolls by 1.6 million jobs, but the unemployment rate will probably sit at 8.6 percent, the committee said. Consumer confidence will stay in mediocre
limbo, but may grow between 2 to 2.6 percent every quarter this year.

Home prices won’t drop dramatically in most regions of the U.S., and should recover steadily. Low interest rates and stronger credit will play their part in the recovery, as
well. Consumer credit will show fewer delinquencies, the committee said.

In Austin, job growth, increasing population and a tightening rental market will result in higher demand for housing in the region this year, according to the Fourth Annual Housing Forecast revealed Thursday.

The committee says core inflation should stay under 2 percent through the year, a repeat of 2011 — but a sudden upward jolt in energy prices could throw a wrench in that prediction.

“We’re moving from a difficult environment to one that is slowly starting to improve,” said George Mokrzan, the chairman of the committee.

(Austin Business Journal)

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Wells Fargo contributes to clean energy initiative

For years, Wells Fargo has been a lender in both embracing and furthering the use of green energy. Now the company is investing in the energy ideas of others. The bank has contributed a $125,000 grant to the McCombs School of Business at The University of Texas at Austin to fund a clean energy initiative during the 2012 Global Venture Labs Investment Competition (GVLIC).

The GVLIC is an annual competition held each May at the University for students to
come and present business plans for new, innovative business ventures. This year’s competition will focus on advancing energy efficiency, expanding energy delivery and potential uses for alternative fuels. The grant was something that Wells Fargo felt privileged to invest in, Michael Klein, regional executive of Wells Fargo’s commercial banking office in Austin, said.

“Wells Fargo is an institution that practices green energy in our own business, and we
also support entrepreneurs in clean [energy] technology,” Klein said. “This is an opportunity to practice what we preach.”

The research lab and winner will benefit from the competition, but Wells Fargo will
also have the opportunity to thrive through the experience as well. The company is not only honored to help judge the competition, but is also excited to foster relationships with these innovators and leaders in the field, Klein said.

Texas Banking, January 2012 Issue (pg. 22)