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Silicon Valley Bank continues expansion in Arizona

Silicon Valley Bank, the bank of the global innovation economy, is extending its investment in Arizona by bringing additional IT and finance positions to its Tempe location in support of the company’s global operations. In addition, Silicon Valley Bank committed to lend or invest at least $100M to technology and life science companies based in Arizona over the next five years.

Silicon Valley Bank expects to hire an additional 250 professionals in its Tempe location over the next three years. The company opened the facility in 2012 and has since hired and relocated 250 employees to the location in support of the company’s growth worldwide.

Silicon Valley Bank’s Arizona-based banking team, which works with local innovators such as Infusionsoft and WebPT, is also seeing an increase in activity in the state.

According to a 2014 study conducted by Silicon Valley Bank, companies in the innovation sector in the Southwestern US reported the nation’s highest rate of hiring as well as solid performance in 2013 and optimism for a better year ahead. Fifty-four percent of survey respondents from the Southwest successfully raised private capital in 2013, which was a larger proportion than the national average. The majority of the private capital they raised reportedly came from venture capital and private equity investors.

“Momentum is the word I would use to describe the local innovation economy,” said Dax Williamson, Managing Director for Silicon Valley Bank in Arizona. “We’re seeing a steady pace of new company formation locally and the mood is positive. Similarly, our own business continues to expand around the world and so we’re growing and expanding our operations in Arizona to support our global business. Tempe is a great place for our employees.”

Tempe Mayor Mark Mitchell expressed his congratulations and saluted Silicon Valley Bank on its success and its commitment to helping entrepreneurs realize their dreams.

“It is gratifying to see Silicon Valley Bank’s growth and how much they enjoy and value being in Tempe,” said Mayor Mark Mitchell. “We offer an unmatched location and lifestyle here, and we are delighted they are part of the community.”

“We thank Silicon Valley Bank for its ongoing investment in Arizona. This tech and financial services support center provides hundreds of high-wage jobs for Arizonans, and plays a key role in enhancing service to national and international clients,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “Additionally, SVB’s commitment to lend $100 million provides needed access to capital, which will help spur continued growth for businesses in our state’s innovation ecosystem.”

Silicon Valley Bank offers diversified and innovative financial services to companies in the innovation sector and their investors. These companies range from startups to multimillion dollar corporations looking to do business in the U.S. and internationally.

Silicon Valley Bank’s mission aligns closely with the types of companies Arizona hopes to attract. It is focused on helping entrepreneurs and high-growth innovation companies build their businesses, and it has been instrumental in providing financial services to technology and life science companies for more than 30 years. This in turn helps the company and its clients create jobs and strengthen the economy.

SRP Study Reveals How Businesses Reacted, Adapted To Economy

GPEC helps region build solid foundation amidst economic downturn

The economic downturn rattled almost every industry in Arizona at its foundation.

“The recession served as a necessary wake-up call for both the Valley and the entire state,” says Andy Warren, CEO of Maracay Home and Greater Phoenix Economic Council board member. “In the years leading up to the recession, many people in Arizona had a mindset that economic expansion was invulnerable to setbacks. The recession has changed that mindset.”

But in the middle of the unstable economic environment, analysts would have a hard time identifying Arizona as one of the states that was hit the hardest by the economic downturn if they looked only at GPEC’s success during that time.

In fiscal year 2012, GPEC helped 36 companies expand or relocate to the region — the most in the economic catalyst’s 23-year history. That topped GPEC’s previous record of 31 companies, which it set in 2011, giving GPEC its two best years when times were toughest and competition for companies was at its most fierce.

So how did GPEC achieve such success in a down economy?

“GPEC has distinguished itself as a true public-private partnership where the cities, county and business leaders have a working forum to collaborate around economic development issues,” says Don Smith, president and CEO of SCF Arizona and vice chairman of GPEC’s board of directors. “It also possesses an outstanding research capability that can reliability assist other economic development interests in making successful decisions. The strategies and tactics at GPEC are robust, and comprehensive, covering local, national and global interests on behalf of the state, and the ground game both internationally and domestically is exceptional.”

The economic impact of GPEC’s success is staggering. The 36 companies it assisted in 2012 will create more than 4,000 jobs for the Greater Phoenix region, will generate $178 million of net new payroll, and absorb or build approximately 3.8 million square feet with their phase one investments. Companies GPEC helped relocate to the Valley include CyrusOne, one of the largest data centers in the country, and Silicon Valley Bank, an expansion from California creating 250 jobs at an average salary of $88,000. Advanced business services, general business services, transportation and distribution, manufacturing and healthcare continue to drive the majority of GPEC’s relocation activity, with environmental technologies rounding out the lion’s share.

GPEC President and CEO Barry Broome credits part of his organization’s success to a major policy achievement for Arizona, the Qualified Facilities Income Tax Credit.

“Gov. Jan Brewer, House Speaker Andy Tobin, Senate President Steve Pierce and the entire Arizona legislature have worked hard to improve our business climate as evidenced by the Qualified Facilities Income Tax Credit,” Broome said. “Moving forward, key economic development programs are still needed to compete with other markets to attract high impact, export-oriented companies and investment — working together as we have done in recent years, I have no doubt we’ll get there.”

More than 11 percent of GPEC’s locates were international companies, primarily due to ramped-up efforts on the organization’s foreign-direct investment program and 16.7 percent were from California, another highly concentrated effort with partners throughout the state to draw investment to the Sun Corridor.

“We now have strong consensus that nurturing high quality job growth is our top priority,” Warren says. “Leadership at the state level, municipal level and from the private sector are now fully aligned with a singular focus toward specific growth industries applicable to Arizona. We are creating a fiscal environment where Arizona is fully competitive with other growth-oriented states … This clear mission and focus is on growth industries that will drive the future economy such as healthcare, clean technology, technology, aerospace and defense.”