Loan Fund Helps Stabilize Business

In early 2008 Abdul Yusef and Rasheed Ahmed made the first trip with their new transportation company, Universal Transportation & Translations (UT&T).

Yusef and Ahmed began with one car and an ambitious vision of becoming a thriving business in the Rainier Valley. But like most businesses, they faced obstacles before succeeding. For one, they needed money to purchase vehicles and to cover operating costs. However, without a two year operating history, banks considered UT&T too much of a risk. Yusef and Ahmed also couldn’t pay interest on loans because of their religious beliefs. Yusef and Ahmed turned to the Rainier Valley Community Development Fund (CDF) for help and in July of 2008, the CDF gave them a loan that met their religious restrictions.

Before turning to the CDF, the success of the company wasn’t assured as it struggled with rapid growth and insufficient operating capital for its first nine months. Though Yusef was able to invest grant funds he received from the CDF for losses related to another business due to the light rail construction, it wasn’t enough. They were able to purchase additional vehicles that in turn required more working capital to operate. They struggled with a 45-day turnaround from billing to payment that left them short of cash each month. Yusef and Ahmed found themselves being drivers when their time was needed to manage the business.

CDF came to the rescue by giving UT&T a loan that enabled them to meet their working capital needs as well as purchase four additional vehicles. CDF also spent nearly six months helping Yusef and Ahmed create a business plan, prepare accurate financial statements and produce reasonable cash flow projections.

Today, UT&T owns 14 vehicles, employs 15 people and has a government sponsored contract to transport people to a variety of medical appointments.

“The CDF’s investment in UT&T was worth a million dollars to us,” said Yusef. Ahmed added, “This changed our future and way of life”. Martina Guilfoil, former Executive Director of the CDF said “The CDF was created to preserve local businesses and stimulate economic development. It feels great to know that we made a difference in their lives and stabilized a new business expansion in the Valley”.

The Rainier Valley Community Development Fund provides economic development for local residents, businesses and developers through its loan programs.