LEAD STORY

A Road to Success Exists for Many in Rhode Island

Anthony A. Botelho has a keen vision. And it’s not that he wears rose-colored glasses. As president of Smithfield-based Freedom National Bank, he must intimately understand the economic landscape around him. Admittedly, sometimes the view may not always be that positive. He sees rising unemployment numbers, lagging real estate prices, and he recognizes that retail sales have continued to sag as of late.

But Botelho also sees opportunity. He understands the present, but also sees there is a future. He is preparing for that future now.       

“There is a lot of pent up demand here,” said Botelho. “When the economy does start to move, there is going to be growth. Right now, we are all doing more with less.”

Decades as a senior banker have taught Botelho that things are cyclical and that in time, manufacturers will identify new business and begin buying new equipment and hiring workers. The commercial and residential real estate markets will turn. Entrepreneurs will emerge. And as it always does, consumer confidence will return.

Botelho has spent the bulk of the past three decades working for the larger banks in the market. Now, in his new role at Freedom National Bank, he sees himself returning to the roots of what community banks have always been about – their personal touch. There is a market for such an approach, said Botelho. Freedom National is so convinced of that, in fact, it is in expansion mode -- now. To complement existing branches in Smithfield and Cumberland, Freedom National has opened a loan production office in East Providence. Botelho expects the bank’s expansion to continue.

“This allows us to expand on our footprint,” said Botelho. “It is an opportunity for us to establish a foothold in the Greater Providence market. Our sweet spot is the $500,000 to $750,000 loan. That covers a lot of ground in Rhode Island.”

Botelho sees a down economy as a time to step up, not back down. There are countless viable businesses out there, he said, looking for solutions. For some, it may be to purchase that one vital piece of capital equipment. For others, it might make sense to make a critical hire.  And for others, it might make sense to refinance their debt.

“Business owners want access to bankers,” said Botelho. “They want to be able to get in their car and go and talk to someone. Businesses that are stressed and struggling want to know they have someone to work with them during the slow times, not just the good times.”

Botelho said he has identified an $8.5 million pipeline of new business opportunities for Freedom National and he is setting lofty goals for the bank, which currently boasts of $88 million in assets. Within three years, he believes those assets can reach $135 million.

“We’ve got capital to lend, we have the people to do it, and there is a void in the market that we can fill,” he said.   

Freedom National Bank is not alone in seeing the Ocean State as a place to grow and prosper. In fact, 2011 had its share of highlights. Massachusetts-based Jordan’s Furniture opened a mammoth store that now serves as an anchor for Warwick Mall. For Jordan’s entering Rhode Island makes perfect sense.  

“Rhode Island was an attractive market to us for several reasons,” said Eliot Tatelman, the company’s president and chief executive officer. “One was that we had existing operations in place to support the store. Our distribution center in Taunton could handle the inventory. Our advertising covered the area. And people knew who we were. Also, working with Warwick Mall, we got a good deal. It all made sense and we are very happy to be in Rhode Island.”

And that’s not all.

While no agreement has been reached as of yet, executives from Jet Blue, the low-cost airline carrier, have met with Gov. Lincoln Chafee and officials from the Rhode Island Airport Corporation and the Rhode Island Economic Development Corporation to discuss the airline bringing service to T.F. Green Airport.   

One critical key is to get companies to locate here. Once they do, they tend to like what they find. Just ask Rick Antonelli, president of Galaxy Foods, a manufacturer of cheese alternative products for people who are lactose intolerant. The 30-year-old company originated in Pennsylvania, but was located in Orlando, FL prior to settling in Rhode Island. Formerly a publicly traded company, Antonelli took over at Galaxy in 2009.  Because he had grown up in Boston and lived and done business in Rhode Island, it was decided that it would operate out of the Quonset Business Park, one of the 168 companies there.

So no, it wasn’t the business climate that drew Galaxy Foods to Rhode Island. But the people available here and the quality of life played a major role.

“A business is only as good as the people running it,” said Antonelli. “We found a great work ethic here. We have found great executives. We love being in Rhode Island and we love being at Quonset, overlooking Narragansett Bay. Culturally, this is an excellent spot. It’s a great place to live and a great place to raise a family.”

And there are sound business advantages, particularly in the organic and natural food market. There is a density of the population that is unequaled. And transportation, said Antonelli, is also a plus, with T.F. Green Airport high on his list of positives. From Rhode Island, Galaxy Foods easily reaches its targeted audience. Antonelli said his company would be looking to bring other businesses to Rhode Island.  

“The Washington, D.C. to Boston corridor… there is really nothing else like that in the United States,” said Antonelli.

Botelho is already convinced. He’s ready to work with new businesses, or existing ones looking to expand, much like his own, Freedom National Bank.

“People need to be out there promoting themselves now,” said Botelho. “We decided to be bold and grow.”