Baystone In the News
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Baystone Government Finance Reports Record Business Volume, Remains Optimistic for 2023
Baystone Government Finance reported a record 2022 year in new business volume and remains optimistic about 2023 due to rising demand for equipment and vehicles from schools and counties across the country. David Burr, assistant vice president at Baystone, said the average size of deals rose 22 percent. Securing more partners last year contributed to the gains and adds to a positive outlook, he said.
Burr also said a big category of volume was yellow iron construction equipment and he expects this asset class to continue strongly. School technology is expected to be in demand this year. It is traditionally 17 percent to 20 percent of Baystone’s business, but last year it was only 8 percent, mostly because public schools could access government assistance during the Covid pandemic. Burr explained that these schools often need to refresh their technology to some extent every few years and it is time for many to do that now.
Another contributing factor to 2022 growth was client interest in a new solution called Vendor Payable Accounts (VPAs) introduced last year to work around supply chain delays. “These are escrow accounts with limited paperwork and a locked-in interest rate,” Burr said, adding that supply chain issues may be easing in some sectors but not all.
The VPAs were part of the reason for the school bus volume going from 8 percent to 13 percent. “We also have a good reputation,” said Burr, noting that much of the new volume developed is by word of mouth and by the ability of their sales executives to showcase success in sectors matching the interest areas of prospects. Baystone has been involved in government finance since 1987.
The company was listed at No. 65 on the 2022 Monitor 100 list published recently. Those numbers are based on the publisher’s compilation of 2021 data collected from equipment finance companies.
In 2022 Baystone reported volume at $261.5 million, compared to $224.9 million in 2021.

Supply Chain Tangled? A VPA Can Help
If challenges are what make life interesting, then 2021 was off the charts because there were some real doozies this year, including rising inflation and pandemic-related snarls in supply chains worldwide.
While certainly we’ve seen supply-chain issues before in specific industries where there is high demand for a product, we have not seen them under these circumstances or across so many industries and products like what’s happening now.
These are, in fact, unprecedented times.
Here at Baystone Government Finance, the municipal financing division of KS StateBank, we’ve had a number of fundings delayed by supply-chain shortages for everything from computer equipment to dump trucks.
But here’s a solution for our valued customers in the public finance marketplace: Vendor Payable Accounts (VPAs). In a nutshell, these are escrow accounts with limited paperwork and a locked-in interest rate. And they’re a prime example of how we will work to tailor a financial program to fit your individual needs and requirements.
As the crisis rolls on, Baystone Government Finance remains committed to helping government and non-profit entities finance much-needed equipment, infrastructure improvements and facilities so they may continue to grow and serve their community. With a VPA, we will place funds in an escrow account, mitigating the interest-raterisk to the customer. VPAs provide a way to move forward and fund a lease even though the equipment delivery, for example, may be delayed for months or even longer.
Our customers appreciate this option during a period of uncertainty and disruption in the supply chain not only here in the U.S. but around the globe.
To find out more about how a VPA can work for you, please contact me at 913-748-4628 or dburr@ksstate.bank

Baystone Government Finance Sets Company Record for New Business Volume in 2020
Monitor Daily: February 9, 2021
Baystone Government Finance has a record setting year of growth in 2020. The COVID-19 pandemic created new and unforeseen equipment challenges but Baystone was able to fill that demand.
Top Women in Equipment Finance
Monitor Daily: 2020 Diversity, Equity & Inclusion Edition
The Monitor Daily has selected our Vice President, Linda J. Tiers as Monitor’s Top Women in Equipment Finance. Over the past three-decades, Linda has been an influential leader at Baystone and in the municipal industry. This distinguished honor is well deserved! Congratulations Linda!

Deal or No Deal? Balancing Demand for Tax-Exempt Leases with Concerns About Non-Appropriation
Equipment Leasing & Finance Magazine: Nov/Dec, 2020
By: Assistant VP, Brad Buhrow
While tax-exempt leasing offers benefits for state and local governments in any economy, some municipalities are turning to it for cost savings during the pandemic. School technology for distance learning has been particularly strong driver of recent demand.

Baystone Government Finance Provides FDNY $3.35MM in Emergency Financing
Monitor Daily: June 25, 2020
By: Baystone Assistant Vice Presidents, Christina Ummel and Bradley Buhrow
Baystone Government Finance provided $3.35 million in financing for the City of New York. The funds will be used to pay for 19 ambulances pressed into service at the height of the city’s response to the COVID-19 pandemic. Working closely with Baystone, Republic First National submitted the bid for the financing.

In the Coronavirus Era, "Think Local" for New Captive Finance Channels
Equipment Finance Advisor: April 20, 2020
By: Baystone Assistant Vice President, Bradley Buhrow
Despite tough times, businesses must always look ahead to explore strategies for moving forward. One way for captive finance companies to do this is to “think local” – offering municipal equipment finance to states and local governments.

Morphing the Model: From Broker to Funding Source
Monitor Daily March/April 2020 Edition
In an interview with Monitor our Director, Evan Howe, shares the story of transforming from a broker to a bank affiliate and shares advice for other independents with M&A aspirations.

Announcements
Baystone appreciates the efforts of all of our employees. In conclusion, we want to encourage everyone to welcome and congratulate these employees on their new position.
Jaymie Paavola-Luckert's Role in Government Finance is Expanded
Jaymie Paavola-Luckert’s role has expanded and she will now be managaging the payment and servicing reconciliation department for Baystone Government Finance in addition to her current leadership role. The department handles incoming payments, payoffs, collections and overall post-funding-related payment issues.
“Jaymie has worked hard through the growth and changes in government finance. Her achievements have paid off,” said Marsha Jarvis, retiring Senior Vice President of lending operations for Baystone, for whom Paavola-Luckert will take over.
Paavola-Luckert joined the bank in 2010 as a Documentation Processor and three years later was named Documentation Supervisor, becoming an integral part of developing departmental efficiencies. In 2020, Paavola-Lukert was promoted to Vice President of Government Finance currently manages the entire pre-funding staff, including contract preparation, the client relations staff and funding operations.

Alexandria Blackie Promoted in Government Finance
Alexandria Blackie has been promoted to the position of Government Finance Documentation Specialist. Alexandria joined our company in September 2019 as a Government Finance Processing Associate.
“Alex has continued to develop within her role as a processor over the last year,” explained Jaymie Paavola-Luckert, Vice President – Government Finance. “She was a crucial player in client relations while we were short-staffed through the fall. Her attention to detail and ability to define issues makes for a natural transition into the documentation associate role.”

Demi Morris and Jojo Mahaffey-Bellinder Promoted in Government Finance
Demi Morris has been promoted to the position of Processing Associate/Client Relations Specialist. Demi joined our company in April 2019 as a Processing Associate/Client Relations.
“Demi quickly advanced to following our fire market portfolio. Her willingness to see deals through to the very end and optimistic personality has made her a valuable addition to our team,” stated Jaymie Paavola-Luckert, Vice President – Government Finance. “She will continue to specialize in the fire market.”

Jojo Mahaffey-Bellinder has been promoted to the position of Processing Associate/Client Relations Team Lead. Jojo joined our company in September 2016 as a Processing Associate/Client Relations Specialist.
“Jojo has worked at all levels of processing and has worked a vast array of complex deals. She is very driven and matter-of-fact in her approach, which is essential in this industry,” explained Jaymie Paavola-Luckert, Vice President – Government Finance. “Jojo is always working to expand her knowledge of the department and she continues to evolve, which makes her an excellent team lead for the processing staff.”
