Speaking of finance

Wines & Vines, July, 1998 by Larry Walker

Silicon Valley Bank, 899 Adams Street, St. Helena, Calif. 94574; Tel: (707) 967-1365; Fax: (707) 967-4827.

Sonoma Valley Bank, 202 West Spain St., Sonoma, Calif. 95476; Tel: (707) 935-3200.

Wells Fargo Bank, 5362 North Blackstone Avenue, Fresno, Calif. 93710; Tel: (209) 442-6278.

Wine Industry Symposium, 1776 Second St., Napa, Calif. 94581; Tel: (707) 255-9222; Fax: (707) 255-2044.

RELATED ARTICLE: SSA CAPITAL - A COMPANY PROFILE

Susan Shumway, president of SSA Capital, bought the company in 1992. Shumway, who has been in financing since 1984, said the company deals with a cross-section of wine, food, beer, printing, graphic arts and computer-related companies.

"We have about 15 active funding sources. We put together people who need money with people who are offering money," she said.

Shumway said SSA can deal with startups as well as established companies. "We like to work with people who are wanting to expand. Maybe purchase barrels or presses or whatever. We like to look at what they have planned over the next 12 months and develop a package for them."

As an example, SSA was approached by an apple juice producer which wanted $250,000 for bottling line expansion. Shumway learned that the company also had other expansion needs. She put together a complete package with an in-house analysis and got the company seven-year financing on a $2 million loan at 1/4% over prime rate.

Not only was that below what they were getting from their primary lender but included in the deal was a package to finance the 20% residual remaining on the equipment at the end of the loan.

"Our goal is to work alongside primary lenders, not to replace them," Shumway said. "We can give them more diverse financing by our ability to shop the market."

SSA will also work with companies that have what Shumway calls "challenged credit."

In dealing with the wine business, Shumway said she didn't think of herself as an expect but as an "aspiring expert." "She said SSA works closely with companies to learn the ins and outs of the business.

"A lot of smaller operations, like family wineries, are so busy running the winery that they might not notice something that could be helpful to them. It gives me great pleasure to give that kind of added service."

L.W.