“We cannot thank the SBDC enough for their quick responsiveness to our immediate circumstances last year. Our Business Advisor was able to correctly reconfigure our R & D on our books to show that indeed we are a company with a positive and lucrative future. Talk about a cliff hanger! We are now able to enjoy our 25th anniversary in business.”
Data Distributing, LLC
Sherman and Marjorie Hauser, majority owners of Data Distributing LLC and John Kettles, CFO and Nancy Fisher, President & CEO, part owners, were very concerned for their employees and their 24-year-old business. The global recession was bringing their Medical data and storage business to the breaking point. Due to so many budget freezes in the hospital industry, sales were swiftly declining. They were forced to lay off 6 employees, and their bank was canceling their line of credit. Several other banks denied their requests for a new line of credit. In desperation, the Hausers and Kettles turned to the Central Coast SBDC in November of 2008 for help.
A SBDC Finance and Business Planning Advisor conducted a financial analysis of the business financials and projections. Within a few sessions, the SBDC was able to assist the client with an option for a revised balance sheet and projections that were much more positive for the bank debts and requirements, resulting in more financing opportunities.
With the revised financial reports, now correctly adjusted for the R & D of 2 new software programs they developed, the business qualified at a new bank for a better line of credit, saved the jobs of their current 24 employees, and continued the business into 2009. Kettles reports that Data Distributing LLC is beginning to thrive again due to their excellent product line, support and technical services. The new software program developed for Medical Records called DISCO has the potential of $50 million in sales nationwide and is recently being installed and tested at the VA in Tampa. DISCO for medical records not only follows President Obama’s call for greener technology in medical care, it assures the future of an important and needed business for the local community and the country. If the beta testing for the new customer is successful, Data Distributing hopes to rehire all the lost positions, and then some.
“In these times of very limited credit, it was a difficult task, but we were able to secure a line of credit with very beneficial rates and covenants. I am very grateful for the SBDC and the fact that it provides this crucial community resource. If it wasn’t for the SBDC, it is quite possible that Santa Cruz would have lost another business,” says Kettles.