www.ncicap.org-- theusiness news from capital region. this is "wasashington business report" with abc7 national correspondent rebecca cooper. >> thanks for joining us for a look at business and finance in the washinon region. we start today with a ng- running success story. industrial bank. lgestgton's oldest and american-n-owned national since it opened its doors and 1934, the bank has grown from six employees to more than 150. $192,000 to more than $300 million in assets. aboutlast week we talked

the problemems facing of community, american adustrial bank has been leader in mirity lending. joining us today, doyle mitchell, president and ceo and minorityrman of the bankers' association, and former chairman of the d.c. chamber of commerce. ana co-owner of the washington nationals. mr. mitchell, thank you so much for joining us today. abouteek, we talked nroblems that the "washingto business journal" uncovered. some very troubling statistics. do you think there is a problem it minority lending when comes to small businesses? >> absolutely. in the late 191970's, you had te community reinvestment act that was not enforced until the 1980's. redas designed to eliminate lining. which was centered around

discscrimination. recent events validate the fact e still this country w have a major issue with racism. it is kind of a rhetorical question. until we saw some of those toblems, it is going continue to see its way into the banking industry. >> you also make the case that one thing that can help is support more community banking. communityase for why banking is more open to lending. >> minority banks are a subset of community banks. community banks, even though we ff the deposit in the 40% of small-e business loans. sveryone k knows small busines employs 80% of workers. if you want a healthy economy, you need to create an communityt where banks and minority banks can thrive.

>> your bank has been a success story. you were able to come out of recession still in the black. you survived the recession when the big names did not. we have profiled other success manks, and yet they do not see ofget the network opportunities from the federal government that they need. what is the solution? >> the focus in banking needs to be 20 or 50 different banks. we are collateral damage for and of ththose laws regulations to make sure the nancial system in this is safe and sound. we just do not really get the c communityout what economyan it to this

thewhat we mean to community. >> since your bank is willing take a look at a case by decision, what is your to small businesses out getting trouble to capitol? what can they do? >> there are cerertain basics that small businesses have to sure they work on. peperson credit is very key. first and foremost for small businesses, the difficulty i everyone'son is probably average is wasas good as when it once to you still have to try repair it. thet can also come down to asiness decisions you make as small business person. where you choose to locate or what you decide to sell. therare ways to put in a better position. to get a loafrom your bank than other businesses.s. andhey need a business plan financing.

it is very important. they do not necessarily know to account for all of the widgets. sometitimes they are good at selling but we look at how y you account for them. we look in your paper and your financial statements. as we try to understand them, toll business owners need try to understand them as well. not like an accountant but at thet they need to know areuage that the bankers going to speak to. >> a difficult time, three generations ago, when your thisy decided to take on business. tell us about the history. after bank started allklin roosevelt closed the banks in 1934. there was a bank that could not reopen. my grandfather being in real- estate and seeing e need for inafrican american bank washington --

went out and sold some stock out his car.unk of we started operating. mostly they did residential -- some small , some personal loans conservative and grew slowly and the years with strong capital. >> water some of your own thatnal rules for success you try to follow? >> banking is tied very closely to lending money lending money is sometimes a very difficult thing to do. sometimes it is a science and metimes it is art. particularly with clients who are on the fence. trying to get communities to conservativt is a business. low,t margins are

thelation is high, and reallyfor error is not great. where there are cases where we eave clients on the margrgins, w we to be creative as how can make loans. we want to make loans. we do not make money if we doo not make loaoans. we are not in the business to turn down people. >> any chances that you look back -- >> absolutely. it is very satisfying. it is very gratifying. it is probably why i am still in business today because hear those stories. theyey come back and say if it not for your grandfather or whenr -- do you remember you did this? it makes me feel very good. >> we see that with the it.onal doyle mitchell, thank you for "washingtonn business report." ♪

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>> welcome back. do not be fooled by the hair and clotng change, that t last was it taped last week for our series looking at lending in the .ashington region at both segments by w wjla.com,m,te, and type in "washington business report." mntime, for iran table segment, washington has the of governmnment. shareholders, or tpayers, by d manageme and secrett the gsa

service. t take a closer look at the aomic. on the jobsronthis but good news about spending. spur new businesess. joining us tay to lk about this, politico's jonaththan all, of the go-toguys in for commercial real- estate, ernie jarvis with fst potomac realty trust. ao here withs insight. back.e ave it the secret service and whether they need new manuals on prostitution. s start with the economy. contentious small business tax thepassed this week in house, and the sate mayy not

up. it what is it? dead on arrival i tnk. ththey want to show they are g taxes at a time when we eed for job growth. the idea is it would spur pepeoe jobs and also meant to that you areear going to see capital gaiains and taxes go up in the coming yrs. is a message from leadership to about where they whereaxerms of rates shld be. they didid not passs the so-o- caed buffett rule. that got shot down. saying theirre small businesses cacannot by democrats would say this tax c cut would not go to busininesses with many employees.

they were quick to point out quali for thewoul cutut. kardashian is the poster d for everything. it sounds like she has quite model.sins seriously, what is gng on there are lot of who are small businesses. o of hedge fund nagers who n not create jobs in the way we would think of to create jobs but wou qualify for the r this plan. connection between the tax creation ---- it diffently depending on e business. oph winfrey getting a a t cut is not nececessarily going to mn bunch of manufacturing jobs. good news in our area in ocommercial real-estate.

things are seeming to look upward. >> thehere is no better place to the world forn estate thenl real- shington, d.c right here, ght now. is a good sign. at first potomomac realty ust, had.7 million square feet renewedeases. ththere is an influence e of moy recognizes the value in t greater washington area. there is a lot to talk about livingsocial and expandingng, bt of the other headliners? livingsocial is certainly the larger brand but therere is also expanded their .resence in downwntown washingtn heard t this morningg that e city has lowered t capital

tax to about 3.8% ian more technologygy the region. how does it c compare to kw virgia an maryland? >> we are seeing growth in all thisrea's especlly washington. strongestone of the the country for real- .state square feet in n the in our portfolio and we are in those regions. when might we h hit $1,0 per s region?ot in thi where are we right now? >> we are at $800 to $900 on a sqsquare foot. $1$1,000 of square foot publiliy .nd the next 18 mohs a building that could for $1,000 a uare foot on of the metro station.

--arragut north so come up locati, location. >> yes. i think will l see that in the to 18 months. >> wat you seeing for the economy? it is small business tax cuts. and commercial real-estatete. the th sectotor has some othther intesting stories with.ple you are working we have ients doing thingss medical such and as o company doioing some majojr activity working with our clients. working with enenergy y rebates. building.d the google a lot of private sector .ctivity

obviously the federal government fortune 1. yet small businesses and entrtrepreneurs and angel umming here.e >> we have seen other companies. trategies making a comeback. another a concern of bubblee in t washingto area? it seems like a sustainable to growtin b bank the money somewhere. the moy has been onhe time.s fofor some we are seeing a l lot of vement at the fiv 10, $20 million level all the way upp $100ose who will start at a company that can

take off. the company worked withh bore has been installing a solar monday that wil 6,000 kilowattsts and produce enough energy for 30 homes. going to take a quick break. stay witus. ♪ [ male announcer ] for our families... our neighbors... and our communities... america's beverage companies have created a wide range of new choices. developing smaller portion sizes and more low- & no-calorie beverages... adding clear calorie labels so you know exactly what you'rere choosing... and in schools, replacing full-calorie soft drinks with lower-calorie options. with more choices and fewer calories, america's beverage companies are deliverering.

>> welcome back. we a going to coinue t talking economy. there have also been a a few scanda in this town. erninie j jarvis, youou didid ne talk about p prostitution.

youhank gsa t's ta about the concerns thahat under muching to be scrutininy for every dollar they spen how much concern in the real- markethat the scand to have an n impact on leasi, d building area?ashington " i think the real tragedy is they lose -- was a the that we as well. la week think he willll his feet. t to find someone with blogs capability with a secr sensibility in an of a shared more estate. thatoupled with the inability to have an

aggressiveve debt reduction togram -- tha is going challenges in the local real-estate market temporarily. you consider the growth, the governmentrew 6.7% a ye which i is a wonderful stabilizg commerciaialrur market.ate where are we in terms of tting the approropriations bills without having to wor t a real impact? you should n notun as a tea y candidate for congress. 6.7% growth of the federal government. >> in this town, it means jobs d spendin we doot k know what the final .esult is gog to be the budget is s built up i the air. you have the cuts that are set well.e in as

the bush era tax cuts he year. at the end of is oneigantic cluster. we reay nnot see right now going to look like the year and probably will not get resolved r the end of the election. michael smithth, i am going to you in the hot seato talk t prostitution. you teacach busiss is how to themselv. boy, does the secret service the a public ime problem. is your advice to the secret service from a a p.r. pot vie >> i have doncrisis commmmunications for a checall

company and have been involved off crisis situations. truth and y tell if first. the situatn here is relegated a group of indivua. think the presidentid the thing andhe resignations were correrect. describing the role of the service agent. you remember them when you were .t thehite house around, ethical, and what we have here a nhat got out of control. there is goingng to be oversit and everyone is going toant to g get involved in this story. we will tellak, you why 13 is o

welcome back. our number of whe week, 13, is between asking pricand selling price for washington market. the median listing price was in march. that a lucky number? atlanta, the sales price is

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