Business
NationsB ank
Lending Unit
to Assist Small Businesses
NationsBank has announced it has formed a new
lending unit to target small businesses and expects that
nnif tr> make more than SI billion in new loans through
1996.
The new lending unit, called Business Banking,
will make loans to existing small businesses with
annual revenues of up to $4 million. There are an esti
mated 1.2 million small business that will be eligible
for the loans in the key markets to be served initially by
the Business Banking Unit.
The Business Banking loans can he u^ed for many
purposes, hut the the pnmarv ones are short-term work
mg capital, purchase ol eqaipmvut tlr.? pun luisc of
real estate occupied by the business owner and term
loans for expansion. The lending unit will make loans
up to $500,000.
"This program will tap into the credit seeds of
small businesses throughout the Southeast and Texas.
It will help these businesses generate more revenues.
add new jobs and spur their local economies," said Ken
Lewis, president of the General Bank for NationsBank.
"We think it shows the commitment NationsBank has
to small business owners, as well as the- role we can ?
play in sparking economic growth."
In the program's initial rollout. NationsBank Busi
ness Banking lenders will call on business in approxi
mately 30 cities and communities. This includes
Atlanta, Austin, Texas Baltimore, Charleston, S.C.,
Charlotte, Columbia, S.C. Durham, Fort Lauderdale,
Fla., Fort Myers. Fla., and Fort Worth, Texas.,
It also includes Greensboro, Greenville, S.C.,
Houston, Miami, Memphis, Nashville, Norfolk, Va.,
NewpoiTNeWS, Va~ Oilaiulu, Fla., Raleigh, Richmond^
Va., San Antonio, Sarasota. Fla., St Petersburg, Fla.,
Tampa, Fla., and metropolitan Washington D. C.
In addition to targeting businesses in those cities,
small business owners in other cities of the Nations
Bank franchise may continue to make a loan applica
tion at one of the more than 1,700 NationsBank bank
ing centers throughout the Southeast and Texas.
Reebok's Robert Purvy
: An "Architect"
for Athletic Footwear
? He is the man who helped to
- put -the "Attuq' - in Shaq, to enable
Dominique WUkins to soar "Above
the Rim" and to create the legends
that are made and broken on black
top courts across the nation. Robert
Purvy is a product engineer for
Reebok's basketball line and. if you
ask him, he will tell you he has the
second best job in America.
The best job, accoftfTng to
Purvy, is to play in the NBA. It was
probably his love affair with basket- -
ball, coupled with a lifelong fasci
nation with sneakers that is respon
sible for his breaking into the indus
try^ A graduate of La Salle JJmversr
ty in Pennsylvania. Puny managed
a suburban Philadelphia Foot Lock
er. where the regional field-service
representative for Reebok often vis
ited. When she was promoted in
1^86, Purvy called to congratulate
her and tell her that he was interest
ed in her old job.
"The company did a nationv-ide
search for her replacement." Purvy
remembered, "and when they came
to Philadelphia they called me in.
The sneakers that thq^uys who
were interviewing me had on. I had
onlv seen in books and so 1 got real
ly excited and started asking them
all kind of questions about how they
were made and special features.
Someone told me later that my
enthusiasm had a lot to do with my^
getting the job."
Purvy spent one year as a field
service rep. traveling the Tri
state/Pennsyl vania region and
reporting back to Reebok on how
company products were taring, what
ifi i-nmpelitnr. vvpiv fining in the
region and on consumer feedback.
In 1987. he was asked it he was
interested in working tor the compa
~ny overseas and he jumped at the
chance.
"In those days, the companv
was having a difficult time getting
people to move to the Far East.
Aside from being a sneaker and bas
ketball nut. 1 was a big fan of the
Saturday afternoon matinee karate
movies, and so when they asked me.
it, was like they were giving me an
opportunity to live out a dream."
After resettling in Pursan.
Korea. Purvy served as an appren
tice. learning the inner workings of
the factory, the Commercialization
process and the nuances of the rela
tionship5 between the compans and
the factory. Eight months later, he
was named production manager.
"As production manager. I
ph ysically brought the tiesign over
seas to the factory, supervised their
production, monitored the quality of
the products and their expedition out
of the factory." Purvy explained. "I
was the last word on if they shipped
and when they shipped."
In May 1989. when Reebok
expanded production to Thailand.
Purvy agreed to move as well. "The
truth is, T felt good about being-Strte '
to represent Afncan-AmericarfMn a
different setting, he confided. "Over
there, most of the people's exposure
to blacks has been through athletics.
I'd like to think that I was able to
show that in addition to being profi
MONEY WATCH
By THEODORE R. DANIELS
Home Office Deduction?
Many taxpayers in the past have claimed a home office deduction on
their income tax returns. The recent Supreme Court decision, however,
has put a "damper" on such deduction as a result the rules have changed.
The law allows you to deduct a home office if part of your home
is exclusively used on a regular basis either to meet patients, clients or
customers in the normal course of business, or as the principal place of
business for any trade or business of the taxpayer. What is the principal
place of business? What if you are a doctor who operates at different
hospitals, a musician who plays at different locations or a traveling sales
representative? The Supreme Court's decision set forth two factors tax
payers must consider to determine their principal place of business - rela
tive importance of activities conducted at each business location, and the
^mount of time spent at each location.
i Hence, taxpayers who meet clients in more than one location, or
have businesses involving no customer meetings, need to determine
which activities are the most important to the conduct of their business
iand where those activities take place. In addition, taxpayers should also
;look at the time spent in each business location, especially where a com
?parison of activities performed at each business location provides no
clear answer as to the location of the most important activity.
m Here is an example that the IRS issued that you should consider
when making a determination as to whether your home office is
deductible. f
Example 1. Joe Jones is a salesperson. His only office is a room in
his house used regularly and exclusively to set up appointments, store
product samples, and write up orcArs and other reports for the
companies whose products he sells.
Joe's business is selling products to customers at various locations
-within the metropolitan area where he lives. To make these sales, he
regularly visits the customers to explain the available products and to
take orders. Joe makes only a few sales from his home office. -Joe
spends an average 30 hours a week visiting customers and 1 2 hours a
week working at his home office.
The essence of Joe's business as a salesperson requires him to meet
with customers primarily at the customer's place of business. The home
office activities are less important to Joe's business than the the sales
activities he performs when visiting customers. In addition, a compari
son of the 12 hours per week spent in the home office to the 30 hours per
week spent visiting customers further supports the conclusion that Joe's
home office is not his principal place of business. Therefore, he cannot
deduct expenses for the business use of his home.
If you have any questions or concerns, please contact Theodore R.
Daniels, MONEY WATCH, P.O. Box 23558, Washington. D C. 20026.
Robert Purvy
cient in sports, we are knowledge
able about currency exchange, busi
ness and issues of international
importance." When Purvy went to
Thailand, the factor)' was producing
200-300.000 pairs of shoes a month.
When he left a year and a half later,
they were shipping over a million
pairs a month.
It was while he was in Thailand
that Purvy made it known that he
was interested in moving into prod
uct development. In December
1990. he got his wish along with
transfer papers back to company
headquarters in Stoughton. Mass.
y he was involved in the
development of the Reebok Classic
aerobic shoe. Today, however, he
works with a team which includes
three designers and a dozen factory
liaisons and marketing executives
on Reebok's basketball line.
In addition to interfacing with
the designers, factory liaisons and
marketing staff. Purvy's responsibil
ities include deciding on the materi
als that will be used in new prod
ucts. the specifications, the thick
ness of the leather, plastics compo
nents. the technology, and which
factory will manufacture the shoe.
Currently working on the Shaq
shoe (named after NBA superstar
and Reebok spokesperson Shaquille
O'Neal), the Above the Rim collec
tion. Blacktop and Hoop Gear,
Purvy said his long-term career
goals include moving up the execu
tive ladder in product development
and recruiting more African Ameri
cans into the industry. "I tell black
kids all the time that our exposure to
this industry has been at two
extremes, the athletes who endorse
the products and the consumers who
buy them," Purvy said. There is also
a need for young African-Ameri
cans to think beyond what they
learn in school and beyond the tried
and-true, traditional career paths.
They have to start believing in their
dreams and taking positive action to
make them come true."
Sometimes you
need to lend more
than just a hand
-to your neighbors.
nmho ol the things that make life easier can seem a little out of reach at times. Like
>cndmc a chikl oil to college. Consolidating hills. Or buying a new car
I hat - whv Wachovia works with each customer on an individual basis.
W ith h\ed or variable rate loans. Automatic payments from your Wachovia checking
.k ouni And even holiday coupons that let you skip a payment or two whenever you want.
We can help vou find the loan that's best for you
it \ou d like a little help from one of your neighbors, stop by any Wachovia branch
i;\! ulk !'. x !Y:-.onal Banker.^ Welcome to Personal Banking. Welcome to Wachovia.
PCHOVIA