tor, although he has been involved in adiverse range of trades including owning arenovation firm, distributing hotel linens,managing mini-warehouses and marketing

I f finding your mission in life involveslocating the intersection of your tal-ents with the world’s needs, then fam-

ily entertainment pro Ben Jones has foundhis sweet spot.

Jones, a former hotel and FEC operatorwho most recently headed up IAAPA’soutreach to family entertainment facilities,has teamed up with Atlanta-based LiveOak Bank to provide capital to existingoperators looking to grow their businesses.

“I love what I am doing. I like the peo-ple, the bank and the culture,” said an effu-sive Jones when we caught up with himlast month. “I think they have a good rea-son for lending money. We have an over-riding objective of fostering safety andsoundness, and we want to help peoplegrow their business. I joined the bankbecause I felt I could make a difference.It’s not just making loans but enhancingthe industry that attracts me.”

In his new role at Live Oak, Jones willessentially create an FEC division. He con-nected with the bank through formerIAAPA Chairman Bob Rippey, who wasfamiliar with the financial institution andknew they were looking at new markets.Live Oak specializes in providing financialresources to niche industries including den-tal care, pharmacists, veterinarians, invest-ment advisors and evenchicken farmers.

“They are very success-ful in the markets theyserve, and this is a com-pletely new vertical forthem,” explained Jones.“There really aren’t nation-al lending institutions thathave actually tried to under-stand the FEC or amuse-ment model. Because ofthat, there is a tremendousopportunity for a firm likeLive Oak.”

Jones got his start in theentertainment industry as ahotel and restaurant opera-

Atlanta-Based Live Oak Bank Taps Jones To Launch New Division

billboard space. At one of his hotels, Jonesdeveloped a miniature golf facility, whichlaunched him into the family entertain-ment arena.

“I realized I was betterat putters and balls thanpillows, and it was a lotmore fun,” said Jones. “Inever looked back.”

In the late 1990s, Jonesstarted developing FECsalongside his hotel proper-ties, building up manyfacilities before graduallyselling them off to otherowners. He has also pro-vided consulting servicesto others. Going as far backas 1993, Jones served as anIAAPA committee mem-ber and even one stint as anassociation director. In

Not your average banker, Ben Jones (center) sported a festive sombrero at last year'sIAAPA FEC Phoenix, an event he headed up for the association. He’s pictured with SebastianMochkovsky (left) of Sacoa and Jason Mitchell of Intercard. Jones has taken on the task of launch-ing Live Oak Bank's new initiative to provide financing to expanding FEC operations.

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Page 62 • RePlay Magazine • April 2014

2008, he was brought on board by theassociation to oversee its FEC memberoutreach, a position he held until last year.

Live Oak hopes to foster an old schoolbanking relationship with its customers,according to Jones. “Every relationshipdoesn’t have to be adverse or competitive,and that goes for the lender relationshipwith customers,” said Jones. “We are try-ing to reset the nature of that relationship.Live Oak doesn’t refer to the customers asborrowers but as clients.”

To that end, Live Oak also takes a

more advisory role with its customers, pro-viding analytical quarterly statements andmeeting with every client at least twice ayear including once at the customer’splace of business. Live Oak hopes to targetFEC operators who have been in the busi-ness for a few years who are looking toexpand an existing facility, add an attrac-tion or refinance an existing loan or line ofcredit. The bank will also be working withexisting operators looking to buy or buildanother facility. However, Live Oak doesnot presently plan to work with brand-newFEC start-ups.

“As part of our program, we are goingto help our customers look at potentialgrowth opportunities,” said Jones. “Wewill identify those opportunities and helpenhance their cash flow so they can rein-vest or retain valuable staff members.”

These target operators must currentlyseek financing from local banks, many ofwhich are not set up to understand theentertainment business. “It’s difficult tofinance an FEC because we’re not likeanything else,” said Jones. “We’re notretail and we’re not traditional food ser-vice, although we have some of thosecomponents. The business is managementintensive, employs many youth as staffersand is often open year round.”

Jones was quick to declare that LiveOak does not represent competition for anexisting industry financier like FirestoneFinancial, which focuses on lending forequipment needs. “Without Firestone, theindustry wouldn’t be where we are today,”said Jones. “We are not competitive withFirestone. I view what Firestone and LiveOak are doing as very complementary. Weare a cash flow lender. We are fully amor-tizing our loans, for up to 20 years if thereis real estate involved. Or if there is animprovement on a leasehold, fully amor-tizing for 15 years, no balloons, no calls.”

In addition to Jones, Live Oak hasbrought on board Kay Johnson as VP ofDevelopment for this new initiative. Shehas extensive lending experience for nicheindustries, having previously served at theSmall Business Administration.

“We’re still feeling our way, goingslow,” concluded Jones. “I hope peoplewill give us a chance to listen to their storyand to learn more about their business sothat we can help them find the right path togrowth.”

To learn more, log on to www.liveoakbank.com.

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Page 64 • RePlay Magazine • April 2014