GEORGE LEE / GLEE@STARBULLETIN.COM U.S. Small Business Administrator Hector V. Barreto praised the federal agency's Hawaii office yesterday for its performance this year.

---

SBA leader
lauds local office

Hector V. Barreto, head of
the U.S. Small Business
Administration, says the
Hawaii office beat its goals

Thanh Quoc Lam, the Vietnam immigrant who started the isle chain of Ba-Le Sandwich and Bakery Stores, is not surprised that the Hawaii District Office of the U.S. Small Business Administration was recently recognized as one of the top in the nation.

"The Small Business Administration has helped me a lot," Lam said. The Hawaii office helped him get approved for an $80,000 loan from the SBA, which allowed him to pay off higher-interest creditors and to buy a larger oven so that the company's bakery could expand.

Out of 68 SBA offices across the nation, the Hawaii District Office has earned the No. 2 performance rating for this year, said Andrew K. Poepoe, district director of the Hawaii office.

Loan volume outpaced all previous records for the Hawaii district, with local firms receiving more than $63.6 million in government guaranteed financing, Poepoe said. Out of the 518 loans issued, 57 percent went to minority-owned businesses and 34 percent went to businesses that were owned by women, he said.

"We are extremely pleased to reach this level of accomplishment, particularly in comparison with the larger thriving mainland markets," Poepoe said. "All our partners in the community provided outstanding support and participation. I'm asking them to stay in the game and let's go for No. 1 in 2005."

Hector V. Barreto, administrator of the U.S. Small Business Administration, who is making his first visit to Hawaii since President Bush appointed him SBA's top executive in 2001, appeared at the Hawaii office yesterday to congratulate the staff.

Lam, recognized as the Small Business Administration's national small business person of the year in 2002, is just one of hundreds of Hawaii's success stories whose success is directly related to the delivery of SBA's financing programs, government assistance, outreach, counseling and training activities, Barreto said.

"I tell Ba-Le's story all around the country," said Barreto, who also met with Lam and his staff yesterday morning. "It doesn't matter where you start; it only matters where you end up."

Thanks in part to the Small Business Administration, Lam now operates two Ba-Le stores and has expanded the business to include 22 Ba-Le sandwich outlet franchises on Oahu, Maui and the Big Island. His company also prepares and sells pizza dough, deli sandwiches and baked goods to clients including airlines, caterers, hotels, markets and restaurants, he said.

While the SBA's South Texas office garnered the most performance points in the nation, Hawaii's achievement is "a significant accomplishment, especially since this year was the best year in SBA's history in terms of capital, capacity and contracts," Barreto said.

Yesterday, Barreto also awarded executives from the top SBA-guaranteed lenders for this year, Bank of Hawaii and Central Pacific Bank.

The top performing loan officers from across the state also were recognized at the event.

The lending climate has definitely been more positive for small business this year, said D.J. Halcro, chapter chairman of SCORE, the Service Corps of Retired Executives, which provides free and confidential small business counseling.

"When the attitude is positive, things go a lot smoother," Halcro said. "The small businesses that we work with are getting more loans and contracts and are gaining confidence."

While the lending climate was certainly good, the SBA Hawaii District office also offered clients counseling and networking opportunities, Poepoe said.

The SBA's government-contracting program helped secure federal funds for small firms by increasing business opportunities between small firms and larger prime contractors or federal agencies.

The SBA also offered counseling and training to Hawaii's small business owners through its local partners. SBA tracked more than 21,900 counseling and training activities in 2004, not only in Hawaii, but in American Samoa, Guam and other Pacific Islands within the district's geographical area.

"They met their goals by more than 100 percent," Barreto said.

The SBA also is encouraging small business owners to consider international trade opportunities as well as opportunities for federal contracts, he said.

"China's premier has said one of the best ways to shrink the trade deficit with the United States is to buy more from small businesses," Barreto said. "That's a huge opportunity for businesses in Hawaii."

The SBA's business matchmaking program, which creates networking opportunities for small businesses, will soon go virtual, creating more opportunities for small business in Hawaii, Barreto said.

"Hawaii's small business owners won't have to fund trips to take advantage of these events once the program is online," he said.

Barreto will remain in Hawaii today to speak at a conference titled, "Opening Doors for America's Heroes." The event will teach veterans and small companies how to do business with the federal government.