The organization's primary mission was economic development within the City of Santa Ana, including commercial rehabilitation and historical preservation projects.

It was later renamed Santa Ana Economic Development Corporation, and became a Certified Development Company (CDC) in 1983. The CDC designation enabled us to make SBA 504 loans within an expanded lending territory, which included all of Orange County, California. The company was renamed Southland Economic Development Corporation in 1996.

From the organization's initial participation with SBA loan programs in 1984, through fiscal 1993, all of 33 loans were approved.

During 1993, Santa Ana approached Southland's Board of Directors with concerns about the City's ability to continue to financially support the organization due to budgetary problems.

The choice was clear: shut down or take it private. Over the next 3 years, Southland's President and a committee of Board members developed a viable business model they believed would best serve the small business community in Orange County.

Completely revamping our operations and philosophy,we began to focus our efforts on superior customer service and the SBA 504 Loan Program.

The process began in early 1994 with the City giving us 3 years to become independent of City funding.We completed the process and were without City support in 1995.

Our new business model radically improved our efficiency and level of service. Our first year of independence resulted in 22 loan approvals. The second year, after most of our operational changes were implemented,we received 69 approvals.

In 1997 we expanded our lending territory to include San Bernardino County.

Southland had to reinvent itself in order to survive, particularly in light of the loss of government support. We could not, as a private organization, continue to operate the way the City organization did.

Competition was the best thing that happened to us. It forced us to do a better job. The result was a phenomenal increase in 504 Loan production over the years.

Orange County is now one of the best 504-served counties in the country. In Fiscal 2002, 113 loans were approved for Orange County small businesses. This translates into one loan per 17,570 people, based on the 2000 Census. In fiscal 2003, we increased our loan approvals to 137.

November 2003 brought a major change to the CDC industry: open competition on a statewide basis. No longer were we restricted to operations in the Counties of Orange and San Bernardino. We could operate anywhere in the State of California as could the other 23 CDCs licensed to operate in the State.

Open competition, while generally positive and for the most part in the best interests of the small businesses we serve, spawned unscrupulous business practices by a number of CDCs who appeared to have been driven by numbers alone and not loan quality or customer service.

Southland was determined to compete to the best of its ability while maintaining a high level of loan quality, customer service, and integrity regardless of what went on in the marketplace.

In Fiscal 2004 our loan approvals dropped to 124 while we enjoyed a record number of loan fundings of 127 for over $73.5 million.

In Fiscal 2005 we opened a loan office in San Diego to better serve our growing customer base in that County. We also expanded our activities throughout our Southern California market area. We ended the year with 130 loan approvals and funded 123 loans for nearly $68 million.

The big news for FY 05 was the substantial increase in new loan originations over all previous years. Our loans in process exceeded $100 million. We attributed the increase to our development of several new banking sources, growth with our existing relationships, and to our continued commitment to outstanding customer service.

Fiscal 2006 ended as the most productive year in our history. Loan approvals were 148 for $97.6 million, an increase of 14% and almost 20% respectively, over 2005. Our loan fundings increased to 130 for $82.3 million, an increase of 6% and 22%, over 2005. Our loans in process and those approved pending funding were also at record levels.

A tribute to our outstanding staff, these significant increases came with no increase in our staffing level from 2005. We were also able to substantially increase our market area throughout California.

Fiscal 2007 ended with new records for the dollar amount of both loan approvals and fundings. Loan approvals totaled nearly $107 million, a 9% increase over FY 2006. Loan fundings totaled over $88.5 million, an increase of nearly 8%. At year end, our loans in process and those approved pending funding also exceeded the year end figures for FY 2006. Perhaps most important, our loan default rate actually declined from FY 2006 to FY 2007. This certainly bucked the national trends in other forms of lending, most notably residential real estate loans.

Fiscal 2008 started with a record pace for approvals and fundings but began to slow somewhat at the start of the second quarter. The overall economic outlook coupled with a severe contraction of most credit markets appears to be having an effect on demand for owner occupied commercial real estate. Credit criteria is becoming more conservative and we are seeing a flattening, or even decline, in commercial real estate values in some areas. Whether this is a short term or long term situation is not clear.

With predictions of a national recession, we may experience a prolonged slow down in commercial real estate transactions. Regardless of the outcome of this current economic environment, Southland will remain true to its commitment to superior customer service, honesty and integrity in all our dealings, with a staff of the finest individuals in the financial services industry.

We would like to thank our small business borrowers, bankers and the SBA for helping us succeed. We appreciate all your efforts. They have truly made us better.