House Small Business Development Committee, February 24, 2026

Transcript

179 turns. Select a time to play that moment of the video.

1. 0:24:19

   On this cold February morning, oh my Lord, Martina Edwards. Um, before we get started, thank you for being here. I appreciate everybody being here. We're gonna call on Representative, uh, Eric, uh, to, uh, number 10, right?

2. 0:24:39

   Yes, sir.

3. 0:24:39

   Okay. Number 10 to start us off with a prayer.

4. 0:24:42

   All right. Uh, please bow your heads. Our Father, let us thank you for this day. Let us thank you for waking up on our own minds and in sound minds with all our phalanges and body parts attached. We'd like to thank you for the chance to do your will on Earth, in the legislature, and in this committee as is done in heaven. Thank you for all that you've done, for your omnipresence, your om- being omnipotent and omni-powerful, and always carrying us through the dangers of this world. Thank you. In your name we pray, amen.

5. 0:25:13

   Amen.

6. 0:25:17

   Thank you. Representative Bell, thank you. Did a great job on the on the, on the cuff. But anyway, uh, we'll go ahead and call this meeting to order of the Small Business Development Committee. And first on the agenda, Ms. Edwards, uh, the president and CEO of Access to Capital for Entrepreneurs, uh, the floor is yours.

7. 0:25:38

   All right. Well, good morning, everyone.

8. 0:25:40

   Good morning.

9. 0:25:40

   Thank you for being here. Uh, thank you for taking the time to learn more about our work and what it is that we do. Um, I'd like to... One of my small businesses is calling right now, so I'm gonna answer just so he doesn't get lost. Hi, this is Martina.

10. 0:26:08

    All right. Okay, so sorry about that.

11. 0:26:11

    Nope.

12. 0:26:11

    Um, we've got a couple, couple clients with us today, and one of them got a little turned around. So, um, as was stated by the chairman, I'm Martina Edwards, president and CEO of ACE, and, uh, ACE is Access to Capital for Entrepreneurs. We are the largest, uh, community development finance institution in the state of Georgia. And just a little bit about myself, I'm actually from rural Alabama. Spent the first nine years of my life there, moved to what I call the big city of Montgomery, Alabama, and then I started my career in New York City, which I learned was also the big city. Um, I am delighted to have spent, uh, bring all my talent and skills back to the work that I do at ACE.

13. 0:26:45

    I've been here for seven years now, um, and our work sits at the intersection of entrepreneurship, economic mobility, and wealth creation. Um, ACE got its start in, uh, rural North Georgia in the back of a mountain cabin. Our founder was, uh, an individual who was, uh, in, in the Appalachia region, and she was looking to figure out how to impart change within her community. So, um, we started out doing microloans. They were $500 to about $5,000 for about four communities, and our work has grown extensively since that time.

14. 0:27:19

    Uh, now we support, uh, businesses with 15,000 up to about a million dollars. Uh, one of the things that our founder knew when she started the organization was that there's not just a capital gap, but there's also a knowledge gap. So our secret sauce is capital combined with coaching and connections to really help a business figure out the, the nuts and bolts of what it takes to be successful. Um, in our lifetime, we've done just under 300 million in loan capital to small businesses across the state of Georgia. That's about 25,000, uh, jobs that we've helped to create and 3,000 businesses that we've been able to support.

15. 0:27:55

    The bulk of that work happened, uh, in the last five years since COVID, um, and that's no small feat. We are dedicated to our work in, into Georgia. We went from 4 counties to 68 counties three years ago. We expanded into South Georgia, into Tifton, and, uh, we picked up 32 additional counties because of rural work. We w- wanted to make sure that we were able to meet rural demand where they have, uh, shortages in, in banking deserts. So we picked up 32 counties, 16 of them what they call PPC, Persistent Poverty Counties, uh, so they're some of the hardest, uh, to do work in.

16. 0:28:33

    And, um, one of the things that we always say is that we give folks, um, a chance when others, uh, can't or won't. So this shows the expansion, uh, into, uh, South Georgia, and you see that heat map. Most of it we, because we started in North Georgia, you see that's where a lot of the, the dots are where we've helped businesses. Um, we say we give folks a chance when others can't or won't. We believe in, that an investment in one impacts many. So it's not just impacting the small business owner, s- it's actually helping to create a ripple into their staff because it's giving them income, and when you create income in homes, you create financial stability, and when you have financial stability in homes, you often have thriving children, right?

17. 0:29:15

    Um, we support working capital, money for equipment, and we often help businesses with purchasing a building, so that's where the wealth creation is also happening. And then I wanna talk to you about an example of this. A prime example is the work that we've been able to do in, uh, Lumpkin County, which is about 30 minutes south of our, uh, headquarters, which sits in Cleveland, Georgia. So we have four offices. Uh, the, the, the, the headquarters is in Cleveland, Georgia.

18. 0:29:45

    We have two offices here in the metro Atlanta area, and then we have the South Georgia office. Uh, Deb Roe is someone that I wanna talk about, uh, but in, in, in, in, in North Georgia, in Dahlonega, uh, it's the largest city in the county seat of Lumpkin County, and, uh, when you stand in that town square, uh, and look north, south, east, or west, ACE has funded almost every single business that's there. Uh, we've infused about $9 million of capital. We've helped to support over 260 jobs, and, um, it is a county that has about a third of its residents living in poverty, and, and again, capital wasn't re- readily available there.

19. 0:30:25

    Deb Roe, who's shown in the, on the left side of this, this, this slide, is a business owner who started out as a dishwasher, worked her way up into management at a restaurant. Uh, deep down, she really wanted to actually own, be a owner of a restaurant. She was living in the basement of her friend's parents' home when we were able to give her her first loan that allowed her to get co-ownership stake into a restaurant. Now she's the owner of two restaurants, uh, well-known in her community, and c- two years ago, we took our board to Dahlonega to have our retreat, and Deb came over and, and talked to us, and one of the things she noted was the fact that she now has to have a financial planner, and she teared up about that because she went from, uh, making $10 an hour living paycheck to paycheck to now owning two very successful, profitable businesses.

20. 0:31:15

    Um, this is not something-- this is something that's rep- replicable across the state. You know, we're not just helping one business owner in that particular case. We're talking about economic development that is sustaining that community, and it's a tourist town. Uh, Dahlonega is a des- a tourist destination.

21. 0:31:32

    All right. So now I wanna talk a little bit about how we partner and, um, that we are a partner in Georgia's economic growth agenda. Uh, ACE is a, a, a loan fund. Um, we're not a bank. We don't take deposits. So how do we do our work? We leverage public and private partnerships. So we leverage, um, funding that we get from public and private models to have the liquidity we need to loan that capital out. We also, um, are a nonprofit, so philanthropically, we get the grants we need to support the educational arm of what we do, that critical coaching and training, uh, again, to, to meet not just capital gaps but trust and knowledge gaps.

22. 0:32:10

    Um, an example, uh, we have about 750 ... clients in our portfolio right now. So that represents a, a large swath if, if you think about all of them having on average 10 or more employees. Uh, we support businesses, small b- small, uh, farmers. We p- support manufacturers, day cares, um, medical offices, so doctor's offices, as well as retail shops. Um, real people in real communities. And one of the things that I, I really wanna illustrate is also we're, we, we show up and stand up, up in the gaps when we need it.

23. 0:32:43

    So we've been able to support disaster loan programs when, when Helene hit, uh, about a year ago, uh, when there was, um, some challenges around getting some government funding at the time. And our veterans loan program is, uh, is one that I'm really proud of, right? So we have a partnership, we are part of a partnership with, uh, 12 different, um, CDFIs, and collectively between all of us, uh, over the past five years, we have put out $95 million in capital for veterans and their spouses for, for who wanted to start a business.

24. 0:33:18

    ACE is responsible for a third of that number in Georgia alone. So that's how many, you know, we've, we put, uh, and that's 6,000 jobs that those, those businesses have helped to create over 1,100 veterans. So that's really exciting work. We've also partnered with the state, the, uh, Department of Community Affairs, uh, and, uh, its economic development department on a program in the past and currently called s- this, uh, the Small Business Credit Initiative, so the, the SSBCI. Uh, we're helping to, to leverage that capital and put it out.

25. 0:33:48

    Uh, and then we have an ACE Women's Business Center that's been around for 10 years that really is focused on pre-loan clients when they're trying to get ready for loan ready. They help them with that. And all of these things are at no cost to them. So, uh, I'll close out with just saying this, that the work that we do is important. Um, and at the end of the day, uh, CDFIs are proximate. We move capital quickly to those who need it most, and we serve as critical arteries to the banking system.

26. 0:34:18

    And, um, I'll, I'll note that CDFIs tend to be countercyclical. And so what does that mean? That when the economy is softening or on a downturn, uh, we have a rise in demand for our services. That's illustrated by this chart here that almost looks like a bit of a hockey stick. So during the, uh, pandemic and even last year when there was a lot of uncertainty around tariffs and small businesses were getting squeezed because of in- increasing prices, we were, we have been able to stand in the gaps.

27. 0:34:49

    So in the last, from 2020 to now, I told you we did, we've done 295 million in lending. 200 million of it has happened in the last, uh, six years from 2020. We've supported 1,400 businesses. That's helped to create or sustain over 15,000 jobs for the state. And I, our ask, um, of you is, is that, um, you continue to support us, and that if there's an opportunity for any, uh, additional line item in state budgets, that you consider that because we are your partner alongside trying to support small businesses for the state.

28. 0:35:25

    And our commitment and promise is that we'll continue to try to meet the moment and be a force for good for those small businesses, um, that are in need, um, to continue to spur jobs and investment, um, within the communities. And so with that, I'll stop. I'm happy to take questions, and then we've, we've got a couple small business clients that are with us today to also share a little bit more about what it is that they do. Um, and, uh, one, one of them is actually a participant within the SSBCI program. Yes.

29. 0:35:52

    Good. Um, quick question-

30. 0:35:55

    Yes

31. 0:35:55

    ... that I've got is, um, you, you, you, you partnership with the SBDC, and I'm somewhat familiar with the SBDC.

32. 0:36:04

    Yes.

33. 0:36:05

    Um, what do y'all do different from the SBDC?

34. 0:36:10

    Well, we, we, we're, we're a capital provider. Um, SB- we partner with S- SBDC on a lot of different trainings and, and things like that to help people figure out, um... I'd always consider us like a trusted advisor. Um, and so we provide capital, coaching, and connections, um, and probably on a broader scale.

35. 0:36:30

    Gotcha. So basically, y'all do the training, but, uh, or, or they identify your clients? I, I mean, I, I'm trying to figure out how-

36. 0:36:40

    Where, where clients come from, we ex- we, we get referrals from clients who have, have done business with us, so they'll, they'll refer someone else.

37. 0:36:47

    Uh-huh.

38. 0:36:48

    Um, we, we have, we are very entrenched in the, in the, in the ecosystem.

39. 0:36:51

    Mm-hmm.

40. 0:36:51

    Um, we're at the, we're, we're, our metro Atlanta office, one of them is at the Russell Innovation Center for Entrepreneurship. Another one sits, a women's business center sits in Norcross in Gwinnett. So we will partner with a, a variety of organizations, including SBDC, um, to support clients.

41. 0:37:07

    Gotcha. Okay. Eric, do you have any questions?

42. 0:37:12

    Uh, no, no, sir.

43. 0:37:13

    Mm-hmm.

44. 0:37:13

    But it seems like a great program that's helping hundreds of thousands of businesses across the state of Georgia. Um, I understand that, uh, small business are strapped with capital or-

45. 0:37:24

    Yeah

46. 0:37:24

    ... often don't have the, um, the background or even the paperwork, whether it's the proper filings to get capital from traditional places. So, um, thank you for what you're doing for small businesses, um, all businesses, small business in Georgia. So, um, appreciate the good work.

47. 0:37:42

    Absolutely. Thank you.

48. 0:37:44

    Cool. Well, let's get on. Um, let's keep going. Uh, is, Devin, are you ready?

49. 0:37:49

    Yeah, absolutely. You guys want me to use the mic or just talk?

50. 0:37:53

    It helps.

51. 0:37:53

    Okay, cool.

52. 0:37:53

    It helps when-

53. 0:37:54

    Helps a little bit, yeah.

54. 0:37:55

    Mm-hmm. It'll move forward.

55. 0:37:58

    It's pretty, but-

56. 0:37:58

    All right. Yeah, there we go. Wow. Um, anyways, though, great to, great to meet you guys. I know I got to talk to you guys a little bit, um, earlier. So, um, I'll try to share a little bit of the story of Coffee Man and then just kinda how, how ACE has been part of our, part of our story. So, um, myself and then, uh, the other founder, Nick Lopez, we started Coffee Man back in, uh, 2019 And so we actually originally started it to be like a ready-to-drink beverage company. So it wasn't supposed to be like a coffee roasting company, which is a big...

57. 0:38:32

    Like that's kind of the main focus that we have now is to be a coffee roaster. So we, uh, kind of had to pivot, but basically, um, we were like using Prep Atlanta, which is like a food, uh, incubator up in, uh, up in Chamblee, Georgia. It's maybe, you know, 25, 30 minutes away. So we were using Prep from 2019 to 2022, and we were brewing cold brew coffee there, um, which looks, looks like this. Um, so we were brewing it in, uh... packaging it in like gallons and 10-ounce bottles and kegs and selling it to restaurants mostly in the Atlanta area.

58. 0:39:06

    So a whole- wholesale strictly model. Um, and so Nick and I, um, we started the business pretty young, for better or for worse, uh, which is kind of why ACE comes into play. But I think I was 24 and Nick was 20- uh, 26 at the time. So, um, we didn't really know what we were doing, uh, is a good way to put it. So we were trying to, um, grow the business and we needed a physical location. Uh, Prep like basically is a food kitchen, so you can rent time there, but you don't own any like physical permanent space most of the time.

59. 0:39:39

    Um, and so we were connected with... Uh, funny that you, you brought this up, but we were connected with another restaurant in Atlanta called, um, Red's, Red's Beer Garden, and, uh, they're located, they're still there in Grant, in Grant Park. And, uh, really the only reason why they exist is they were able to get funding from, from ACE loans as well to build their... Uh, it's a, like a hot dog beer garden. It's a pretty funny... It's a cool, it's a cool place. So that's kind of how we heard about ACE was just through, through that referral. And so, uh, ACE was able to give us, I believe about...

60. 0:40:11

    I think we, we received about $200,000 of funding. Um, and so that allowed us to open our original location, which is over near Georgia Tech in, in West Midtown by Topgolf. Um, and so that space now is both a coffee shop, like it's a cafe that's open every single day. Um, but then we were able to move all of our production out of Prep there. So there's a big kitchen. We have a permit from the Georgia Department of Agriculture, Fulton County Department of Health, and we still, uh, make cold brew. We still, uh, make syrups and like I was saying, sell it to different, uh, you know, restaurants and corporate offices around Atlanta.

61. 0:40:46

    Um, but one thing that I've, I've really enjoyed with, with ACE is not just the capital, but also, um, the, the connection, um, to resources. So we've been able to, to be a part of two programs where we got a grant to work with financial advisors. One of them was, um, like more accounting and finance, like finance focused just to help us with, um, financial modeling, making sure we're not just selling stuff, but actually making money.

62. 0:41:16

    Um, and so, yeah. And so that was great. And then the other one was just an overall like, uh, consulting, um, relationship with, uh, with a company in Decatur called Goliath Consulting. So the capital helped. I mean, we couldn't have been able to open the building, do all the construction, buy the equipment without the capital. But, um, I think it's, it's a lot more than that. Like ACE doesn't just give you the money and say, "Hope it, hope it works out," you know? Um, they're kind of there to help you through every step of the process. And we, we have an advisor that I talk to, you know, every month or every other month.

63. 0:41:48

    Um, just she's always sending us grants or business opportuniters-- uh, business opportunities. Um, Karina, she's actually, uh, gotten us some like wholesale accounts in Atlanta, like restaurants or people she knows that now like buy our coffee for their business. Um, so yeah, for us, it's been, uh, a really huge part of like why Coffee Man's been able to grow and be, be what it is today. So, um, we're, we're actually even getting ready to install, um, a big, uh, coffee roaster in one of our facilities, um, later on this year.

64. 0:42:22

    And I think, uh, ACE is potentially gonna be a part of helping us with that too, which is, which is gonna be crucial. So yeah. Any, uh... That's kind of our story. I can always talk about the actual coffee itself, but, um, that's kind of how Coffee Man got here and the part that, that ACE has played. Yeah.

65. 0:42:41

    The first question is what are sales? Where, what, what is your volume right now?

66. 0:42:46

    Yeah, yeah, that's a great question. So I think before ACE helped us in 2022 with the funding, I think we did like $75,000 in sales that year. And then 2025 we did like one point five million. So a big, a big jump over, uh, over three or four years. And so, um, part of that is 'cause we were able to get our coffee bags into, into Publix. Um, so that, that helped a lot. Um, but yeah, it's been cool to, to see that consistent growth.

67. 0:43:15

    Gotcha.

68. 0:43:15

    If Devin didn't say that, I was gonna say that they are in every Publix grocery store in the state of Georgia, and that's really a part of what we're, we're talking about is it is helping a, a business that is poised to scale and be able to grow, to figure out what they don't know sometimes, right? And getting them on the right track. Our financial advisors, which are in-house on our team, and we use consultants as well, but they're focused on making them better financial operators and understanding their financials. And once you understand that, you can have a whole lot more confidence in how you do work and do business and not fall into some traps out there.

69. 0:43:48

    So that's a part of what we do.

70. 0:43:50

    C- could you elaborate a little bit on the, on the financial and the business, uh, tutoring, I guess, would be the better, uh, uh-

71. 0:44:00

    Yeah, the, the, the coaching element of what it is we do, we have a women's business center that's pre, pre-loan. We, we're in partnership with the SBA, with our women's business center. And so anyone, we're gender agnostic, can come in and get help, uh, but, and, and better understand, uh, their business, how to get certification, things like that. And then we have post-loan s- uh, services for anyone that's a client of ours. It's no cost of, um, to them. They're, uh, they get, they can get one-to-one coaching from our financial advisors or peer coaching. So if we have a number of re- uh, restaurants in our portfolio, so we can try to group them together and have a cohort around that.

72. 0:44:33

    We have bookkeeping. Um, so depending on where you are, early stage versus a, a, a kinda steady state business or one that's, that's scaling, uh, we've done cohorts in partnership with Morehouse Innovation and Entrepreneurship Center, uh, around retail readiness for folks who wanted to, like, get into a, a, a big box retailer. We s- we've helped folks who, um... We had a cohort around airport concessionaires for those who wanted to figure out how to have, uh, you know, be within the, the, the airport and infrastructure.

73. 0:45:03

    So we've had, uh, a cohort around how do you support the out- external infrastructure at Jackson-Hartsfield Air- Airport. So there are a lot of different programs that we run. And then we have one that I love, they call High Performing Growth Group for Women, uh, because obviously our organization was founded by a woman. Um, she saw that a lot of women were coming back to us, business owners, for repeat loans. And we started to say, "What are the additional pain points that businesses are going to experience after they, they c- they grow," right? So it's beyond just the service you provide or the widget that you're selling.

74. 0:45:34

    Mm-hmm.

75. 0:45:34

    Now you're gonna have HR issues. You gotta make sure that you've got improved, professionalized operations and systems. So those are things that we worked on. So that High Performance Growth Group was focused on 20 women that were, had, had at least a half a million in sales. Our goal was to get them above a million in sales. Now we're on the 2.0 version of that, so all the graduates of the first program are now mentors to the second group of women. Um, and so that's just a, you know, example. But there's a variety of different programs. Uh, we're the largest SBA microlender in the state of Georgia as well.

76. 0:46:06

    Um, and that is, it, it, it allows us to have, um, the funding. They call it TA in our world, technical assistance, uh, which really means business advisory. But that is usually what enables us to be able to do some of that work, is that we get some, um, t- technical assistance dollars, um, at, at the SBA level.

77. 0:46:22

    Good. And one more question is the, when y'all do the loans, you, I heard grants and loans, and the loans are amortized over what length of time?

78. 0:46:32

    So usually we have terms that are no more than five to seven years, but they're amortized over a longer period, like 20 to 30 years, to make the loan affordable for the small businesses. And then the grant dollars that we get allow us to be really innovative and fle- and flexible in how we lend. So we try not, we, we're trying to figure out how to get to a yes, not to say a no. So if someone, it comes to us and their business is doing well, they have sales, we will take a, we are able to use a grant to serve as a backstop. Let's say they don't have collateral. You go to a bank, they're gonna say no.

79. 0:47:02

    But we will actually use a grant to serve as a backstop as their collateral to kind of de-risk the loan for us. And so that's why grants are really effective, um, for us in that case.

80. 0:47:13

    Okay. W- well, you amortize it over a longer period, but the loan is only for-

81. 0:47:20

    Right. Then they'll, they'll refinance, and they can usually go onto a banking platform at that point in time.

82. 0:47:25

    Oh, so it'll balloon at that time, and then you can go to the commercial lender, uh-

83. 0:47:31

    Correct

84. 0:47:31

    ... if the, if the business is strong enough.

85. 0:47:33

    Yes.

86. 0:47:34

    Okay. And if the business is not strong enough, what, what, what happens?

87. 0:47:38

    We can refinance the loan for them.

88. 0:47:40

    Oh, you can?

89. 0:47:40

    Mm-hmm. Mm-hmm.

90. 0:47:41

    Okay. Okay, okay.

91. 0:47:42

    Yeah. We try to, we try to work with, uh, all, all of our, our borrowers to, to either get a, graduate from us or help them with a, a, a secondary loan. Sometimes we have borrowers who have been with us now for, for 10 years. They're bankable. They'll use the bank for something larger, and then they'll come to us for the working capital, as an example.

92. 0:48:01

    Gotcha. Cool. Thank you.

93. 0:48:04

    Absolutely.

94. 0:48:04

    That's great. Um, I guess Harry's next.

95. 0:48:10

    Good morning. Yes.

96. 0:48:10

    Good morning.

97. 0:48:11

    Yes. Good morning. Yeah. Uh, my name is Harry Bazaz. I'm the president, the founder of Blinds By Noon, a funny name. And then, uh, my story starts, I've been in business for 38 years. Uh, 38 years ago, uh, I was a, a retailer buying blinds and from brand names that you remember, Levolor and all, you know, all the names, and probably 20 others that they're out of business now. Uh, so the, uh, one day I had a, I had a dream that, that I couldn't wait for the companies and manufacturers to make my blinds.

98. 0:48:45

    So that was a, a very, uh, exciting time because I was living in a country club, St. Ives Country Club, front golf course and back golf course, and nobody knew that what this crazy guy was gonna do. I started fabricating blinds and shades in my basement, a 1,700, uh, unfinished basement that nobody knew that, that how could you do this in a country club and make noise and saws and different things? But, you know, I started with, uh, fabricating, uh, uh, become a fabricator of Comfortex Window Fashion.

99. 0:49:15

    They're, uh, based in Baltimore. And they were bought out, uh, by another company, uh, six, eight years ago. So I started fabricating honeycomb, and then next, next thing you know, I started fabricating forward blinds and wood blinds. So the dream that was, why wouldn't I make something blinds custom made tonight when, while you sleep and install it by noon tomorrow? So the name Blinds By Noon was born, right? So, uh, did it for four years. Very, very successful. So I then, uh, I learned later on competitions was following me to see where this fabrication facility is, but they couldn't get to the gate to follow me to my home.

100. 0:49:52

     So, uh, uh, to make a long story short, I, uh, uh, you know, I needed to do plantation shutters because that's why it says shutters real soon. So moved to an Alderman Drive, Inwood Parkway, moved to Norcross, moved in, uh, I always loved billboards and billboards, I still do. So, uh, a billboard, uh, became available at Spaghetti Junction. A gentleman named Gary Lewis owned the building. I was calling him, he wasn't returning call, and I fi- finally found the building, begged one of the tenants to give me this landlord's cell phone and, and she did.

101. 0:50:24

     So called him up, and then he, he showed up and said, and says, "Meet me at the building at 6:00 AM tomorrow morning," and then rented the, uh, facility, then I got the billboard. So I got the billboard. What I didn't know I was putting Expo Design Center, owned by, used to be owned by Home Depot, I didn't know I was putting them out of business of shutters and blinds and shades because I was delivering so fast. So they called me instead of me calling them. So the relationship with the Home Depot Expo Design Center and Home Depot started. Since the time is very limited, I don't want to run my mouth and tell you a two-hour story.

102. 0:50:55

     So, uh, they gave me one Expo Mansell Road, uh, store, store 162. Then next thing you know, they gave me one, one, uh, uh, store, uh, uh, of, um, uh, Ashford Dunwoody, the largest Expo they had at the time in the United States. So out of two Expos, I parked myself there, showed a, an opportunity that did $972,000 sales out of two stores. Then Home Depot noticed that, wait a minute, who is this crazy guy? You know, in, in 44 stores at the time, we did 862.

103. 0:51:26

     He did almost a million dollar out of two stores. So I got 44 Home Depots. Now there are 71. Then today, here's the story of today. I have 236 Home Depots, and I showed them the money. I brought the $862,000 sales to, uh, in, in less than three and a half years, to $4.2 million. And then they said, well, you know, of course, they didn't know what the Shop at Home model was. I'm the, the inventor and creator of their Shop at Home model because I broke the rules from day first.

104. 0:52:00

     I collected the payments from the customers, and finally, they came to their sense that they say, "Why don't we create a Shop at Home so we can legally collect payments from the customers and not this crazy guy going on a, on a paper that he wrote and he created?" But the, the Home Depot, as you know, you know, this is a, uh, you know, uh, state of Georgia and Home Depot and Home Depot. So they listen to you. They, they, they, they, they... You said, "Guide us, tell us what to do," so they don't really slap you in the face and then fire you. So they, uh, sometimes, sometimes they slap you on the, on the hand and say, "Hey, don't do it, do it," which they really mean keep doing it, you know?

105. 0:52:39

     But a very good partner. And then back now, h- how does this story comes with ACE? Well, back in, uh, I, I made a mistake during the business en- enterprise and brought a partner in. And then in, uh, in 2008, I had to go through a divorce with a partner, and there my partner had a different mentality in mind. So long story short, went to Regions Bank, got a loan. They said, "We're not gonna give you two and a half million, we give you 2.2." They introduced the best, next thing happened in my life. They introduced me to ACE, Miss Sandy, um, uh, th- that, that was a big, big instrument to really make this happen, or else it wouldn't have happened.

106. 0:53:18

     And honestly, my company was at the verge of going out of business because my partner kept hiring people, didn't know w- how the manufacturing worked. But remember that I, I knew manufacturing like the palm of my hand, not only the sales, but manufacturing and marketing of the p- uh, part of the business. So, uh, then they gave me a bridge loan of $350,000 and then that deal happened. So they helped me very, very cred, uh, uh, because, A, the, the, the deal was falling, falling apart. And not to mention, my partner didn't want to sell to begin with.

107. 0:53:50

     He told me later on that I was hoping that this deal was gonna fail. So we-- I did everything possible so it wouldn't happen. So I keep being a CFO and this and that. So, uh, then the, later on, uh, I, uh, uh, uh, we, we've been-- I was exclusive shutter provider for Home Depot. Then I, I asked them, and I asked them, and I asked them, "Listen, we need to be selling everything, blinds and shades." So would you believe that this small company in Georgia, uh, owned by Harry Bazaz myself, I convinced them to drop the largest providers they had, Hunter Douglas, and gave me the Shop at Home blinds and shades and shutters, all of it as of last September.

108. 0:54:31

     Wow.

109. 0:54:31

     And it only happened because of ACE, and I tell you why. I didn't even know what an SSBCI was. One day San- Sandy is calling, coming from vacation thinking of Harry. "Harry, I, I'm just calling with my husband. He's on the speaker. How are you doing?" Well, who in the world goes on a vacation, calls a client, and see how, how he's doing, right? And I said, "Sandy, here's the problem. I, I'm, I'm bidding on these 200 some stores. I wanna get all the business, but I need-- I don't have the capital." She said, "Well, have you heard about SSBCI?" I said, "What is that?" So the story of SSBCI started, and then last year they helped me with half a million dollars.

110. 0:55:11

     And or else, or else, this other deal wouldn't have happened. Today, today with the growing of these stores and then blinds and shades, and then we are hiring people, hiring people that they wouldn't have a job, giving them a draw until they make their, their decent commission on their own, themselves, keeping my employees on payroll thanks to, thanks to ACE. Another story I wanna tell you, uh, one day I was sitting and really almost sad because of the COVID, and I was sitting on a $750,000 inventory that I made, but I couldn't install them because of the COVID.

111. 0:55:48

     And I didn't have money to pay my next payroll.

112. 0:55:55

     Uh, had, I had hot tea that morning with my wife. The phone rang out of the blue. A, an angel from ACE called and said, "We're gonna deposit $50,000 to your account."

113. 0:56:09

     What account number do you want to deposit to?

114. 0:56:13

     Anyway, but for a small businesses, it's difficult to deal with crazy banks. They're out of control. If you have any power, don't give them any, any money so they won't disperse the money. But ACE, just like what she said, they'll find a way. They listen to you, and they really do. Uh, sorry, I didn't think I was gonna get emotional, but I did.

115. 0:56:45

     Uh, but it's a, it's a tear of joy that to keep my 50 employees employed, never missed a payroll, and one big reason is ACE entrepreneur company, and I cannot thank them enough. So I'm open for any questions.

116. 0:57:07

     Cool. That's a great story. That is really a great story. 'Cause, you know, being in small business, uh, you're, as you're growing your business, you're throwing your money back into the business to, to get it to grow and, and prosper. So it's, uh, it, it, it's a challenge, and I can appreciate how the, the banks are, are, um... And I'm not sure why the, the, the, the, the challenges that are facing the banks, but I've heard that from many, many places.

117. 0:57:38

     And it's, um, uh, I think there was some bunch of restrictions. Bill, you might be able to help me with this. There's, uh, the Congress put a bunch of restrictions on, on the banks, and they're beginning to lift some of those restrictions off. Um, but I can't remember the name of it, um, that they, that-

118. 0:58:00

     I, I know what you're referring to

119. 0:58:02

     ... You know what I'm... So we're seeing that they had their hands tied. And, uh, I've got... I'll just share, uh, uh-

120. 0:58:09

     Bank talk

121. 0:58:10

     ... That's it.

122. 0:58:11

     Yeah.

123. 0:58:11

     That's exactly right. I, I'll share, you know, a, a story w- with y'all of about a personal experience. I was, um, building a building for rental, uh, and, uh,

124. 0:58:26

     I got the loan from the bank. Everything was fine, no problem. Um, and

125. 0:58:34

     to get the loan, of course, we had to do an appraisal and so forth, which was fine. Okay. Uh, the appraisal was done January a year ago, so it's 13 months old. This December to... Now, this was a construction loan, so I wanna go into permanent financing, and everything's been approved. They wanted another appraisal. So I'm having to spend money on a second appraisal, and it's n- not even a year old because the date of the last appraisal, even though w- we commissioned it, uh, in January of last year, was effective May.

126. 0:59:12

     So it's not even 12 months have gone by. So I can, I, I can share, uh, how this can be a challenge when you're dealing with commercial banks.

127. 0:59:23

     Right.

128. 0:59:24

     But that's good. That's good.

129. 0:59:26

     To be truthful, uh, my CFO says, uh, his name is Artie. He says, "Harry, banks, they do, they, they're very good at one thing, not to lend. But the way they work is that they have all these graduates from, uh, universities that they, they have folders that they must, they must have 30, 40, uh, people's documents. And then if they just grant one or two of the best of these a year, they keep their job. If not, so when you call them, they're very, very interested." But, uh, my CFO says, "Do not count on them at all."

130. 1:00:00

     Mm-hmm.

131. 1:00:01

     But again, you know, uh, ACE, if they cannot do it through this loan, they'll find a different way, and they keep thinking about you. Like I said, a, a lady calling, calling, coming back from vacation from Florida, calling the client and just to see how he's doing. And it, it, it just changes the world of, for a small, uh, businesses, like this gentleman was explaining about his coffee business. Uh, by the way, congratulations-

132. 1:00:27

     Thank you

133. 1:00:27

     ... for ev- every achievements you have made. And then so, uh, any assistance that the, the State of Georgia could do to let them grow so they can let us grow, it would be highly appreciated.

134. 1:00:40

     Gotcha. Are there any more questions?

135. 1:00:46

     Appreciate y'all coming. It's amazing story. It's a small town, but I

136. 1:00:55

     know

137. 1:00:55

     Thank you.

138. 1:00:56

     Absolutely. Representative Bell?

139. 1:01:00

     Um, thank you for the presentation. What are some of the requirements to get a loan from ACE or to get involved?

140. 1:01:07

     Yeah. So typically, um, we work with businesses that have been in business for at least two years, with the exception of in our South Georgia office when we launched there three years ago. Again, it's in the rural, more rural community. We are always focused on being proximate and what are the challenges that they have on the ground there. So that's the one place where we actually have startup models, uh, to support businesses. Um, and that's the one where we also did, you know, the disaster, uh, program as well. Uh, be registered with the Secretary of State, of course. And, um, that's it. You know, be, be in business and have, ha- have a dream, and we're just trying to help you on that journey of what that dream looks like to help you grow and, um, understand, again, the, the, the r- the The landmines so that you don't fall into different, different traps, and that we can help you grow from that perspective.

141. 1:01:52

     But that's it. You know, being two years in business, like I said, we support businesses from 15 million up to, 15,000 up to about a million dollars in capital. Our SBA micro program is focused on those that for, for doing loans from up to $50,000. So each year, uh, we put a d- a decent chunk of, of our composition of our portfolio is in those micro loans. We've had a very, a target over the last, uh, few years around supporting what we call missing middle businesses that are poised to scale, that oftentimes have a harder time getting to the bank and getting...

142. 1:02:25

     It's harder for a bank to do a loan under 200,000 just because i- it's not as profitable for them. And so we've focused heavily on that too, uh, making sure that we can provide loans, uh, in that range. And that's where our average sits. We, our average loan size, uh, for on our portfolio is somewhere between 100 and 200,000. Um, last year, I wanna also note, and, and I don't know if Montina will have an opportunity to speak, she's also, uh, a past small business client, client of ours, but, uh, we were able to, of the 48 million we did last year in lending, the most that we've ever done in our 25 years, uh, so again, speaks to the demand and the need that's in the marketplace when p- folks don't have anywhere else to turn, uh, 27 million of that was actually helping folks get out of high-cost, uh, lending, so, um, pred- predatory lending.

143. 1:03:15

     We refinanced them out of 20-plus percentage point, um, uh, loans they had. And, and when you do that, you, you, you actually free up capital within a business so that they actually can grow, and they're not spending so much money on interest, particularly because, again, businesses are running on thin margins. Uh, they typically only have a couple of months of cushion, and when we- we're dealing with such inflationary pressure, uh, uncertainty around tariffs, and then pricing was going up for the cost of their goods, it was really important for us to, uh, help them out d- in that way, so.

144. 1:03:51

     Yeah. Chairman Williams.

145. 1:03:54

     Yeah. I apologize for being late. I had, uh, I had two other meetings, uh-

146. 1:03:58

     Oh, that's okay

147. 1:03:58

     ... I apologize. Uh, it sounds like you're doing some very nice things for small businesses. Uh, uh, you me- you mentioned that, uh, you have a location in South Georgia. What?

148. 1:04:09

     Yes, in Tifton.

149. 1:04:10

     Okay.

150. 1:04:10

     Mm-hmm.

151. 1:04:10

     Okay. Tell me about your... And I'm sorry I missed it, and, uh, this may be rehashing, but-

152. 1:04:16

     That's okay

153. 1:04:17

     ... uh, are, are your loans mostly collateralized cap- y-

154. 1:04:21

     So, uh, no, not all of them are.

155. 1:04:23

     Okay.

156. 1:04:23

     Most of our loans under 200,000 are not, uh, generally collateralized. W- we-

157. 1:04:27

     Okay

158. 1:04:27

     ... will put a blanket lien on equipment and things like that-

159. 1:04:31

     Right

160. 1:04:31

     ... but we know that it's, if a business really has to go out of business, that's gonna be pennies on the dollar. So we, we do have to, um, we're regulate... We're certified by US Treasury, um, and we have to make sure that we maintain what they call a loan loss reserve, similar to a bank-

161. 1:04:47

     Right

162. 1:04:47

     ... to account for if there is a loss, uh, by a business, and, and some of them do. You know, that's just the natural ebb and flow. We, in, in this business of lending, you're gonna have some businesses that, that don't last, um, especially during COVID. We had a lot of loss of people, loss of life, and things like that as well.

163. 1:05:02

     Wow. Right. And your interest rates, are they competitive with banks, or where are they?

164. 1:05:07

     I would say they're competitive with banks. Um, we, we try to get low-cost patient capital. So how we do work with banks is this. You know, banks that know that they can't lend in spaces that we do.

165. 1:05:20

     Uh-huh.

166. 1:05:21

     Um, Community Reinvestment Act, that's how, w- I was saying earlier, we are public-private partnership model.

167. 1:05:26

     Okay.

168. 1:05:26

     So we borrow low-cost capital and lend it back out. Um, we try to make about a 5% spread, it usually doesn't always happen, uh, on what we do to try to support additional parts of our, our operations. Um, so we have rates anywhere between 8 and 12%.

169. 1:05:41

     Okay.

170. 1:05:41

     Yeah.

171. 1:05:41

     Thank you.

172. 1:05:42

     Cool. That was my question. Cool. Well, thank you. Thank you very, very much for your presentation. We really appreciate it. And, uh, I wish, uh, both these entrepreneurs tremendous success in the future, and, uh, I think y'all will be. Uh, you know, it, it, it, it takes passion when you're in small business. You know, the, the, the, um, I don't know, the secret sauce is the passion. Uh, you, you, you're gonna have obstacles every day, but, uh, that, that passion helps you overcome the obstacles.

173. 1:06:21

     And so, uh, we wish y'all all the success in the world, and thank you for your presentation. Thank you for what you do. I learned a great deal today, I think we all did, on some of the things that we can, uh, do to promote small businesses and create jobs and, uh, revenue for the state and provide services and, and so forth.

174. 1:06:41

     Yes. We wanna continue to be a partner w- with, with the state. And, uh, I say PhD. It requires passion, heart, and determination- ... to be a, a small business owner. Um, it's not for the faint of heart. It really does-

175. 1:06:53

     That's true

176. 1:06:53

     ... require s- intestinal fortitude. But thank you guys for your time today.

177. 1:06:56

     Thank you very much.

178. 1:06:59

     Thank you guys. Thank you for the opportunity.

179. 1:07:15

     Mm-hmm.