TASI Bank: Willing to Break the Mold

You’re a small business owner. That already makes it challenging to be successful. According to industry analysts, nearly 50 percent of small businesses fail within the first five years.

And those figures only marginally consider the impact of the COVID pandemic and do not include any data from the recent inflation and high-interest rate environment.

While the calvary might not be charging over the hill to save you, there are paths to survival and success even as the uncertainty continues.

Viral Shah, regional vice president credit administration for TASI ? Bank, works with clients daily as they try to manage through an economy that is currently in flux.

“We recognize that many businesses have to reduce expenses while facing increasing loan and financing costs,” he says. “But as bankers who work primarily with small to medium-sized companies, we also know the available resources. And, more importantly, we look for innovative solutions for customers.”

TASI Bank, located in San Francisco, is small (over $450 million in total assets) enough to be flexible and large enough to call on federal and state programs that can provide businesses with the capital needed to survive and to grow.

“The fact that 90 percent of our business comes from repeat or referral customers is a testament to how we work successfully with clients,” he says. “Where larger banks might turn down a potential business client because it doesn’t fit in the ‘mold’ of what they finance, we look for ways to help clients.

“We spend much time getting to know them and their needs. We dig deep and ask the right questions. And we have experience. We know, for instance, that construction projects never finish on time. If a business owner says it will take nine months, we set up a vehicle that will cover 18 months. We’re looking for long-term clients, not quick transactions.”

Shah pointed to resources that TASI Bank calls upon on behalf of clients. There are state programs and federal agencies, such as SBA, but also TASI Bank’s status as a Minority Depository Institution (MDI) has real-world advantages. When money “ran out” for the PPE program, MDIs were provided access to additional funds to disburse to clients.

And TASI Bank has also successfully worked with regulators to create programs that are both innovative and unduplicated. “While many banks at the height of the COVID crisis deferred loan payments for customers,” he said, “we understood that the deferrals would be crushing as the interest built up on the deferred payments. We created a solution that met their needs of immediate relief and deferment but did not add an additional interest burden later on by providing customers interim, short-term financing to meet their needs.

Shah said that clients who have fixed-rate financial instruments (or access to them) are best positioned to work through the current environment. ?And he also cautions that companies should look for technology solutions that can reduce costs over time.?Ultimately, however, he urges businesses to “trust their banker” and points to a recent example at TASI Bank.

In 2020, for a client that was starting to manufacture accessory dwelling units (ADUs) when that market was developing, despite the COVID pandemic, “we looked at the potential of the business and found a state small business loan program that required very little collateral,” he said. “With the necessary capital that was provided, the business is now thriving, and the owners are building a strong community business.” The financing was completed in 2022.

Summing up, Shah had some simple advice. “Find a banker you can trust and one willing to break the mold, a maverick. Banks like TASI Bank grow when their clients are successful. We share a common interest.”