Posted: September 3, 2010

By Philip Newswanger

philip.newswanger@insidebiz.com

Stories proliferate about the demise of homegrown American firms, but two companies - Labels Unlimited and Service Link LoanCare Inc. - are surviving amid the doom, gloom and wailing.

In fact, the companies, both in Virginia Beach, not only have survived the recession, they are growing, both physically and by employment.

Founded in 1979, Labels Unlimited, a maker of pressure-sensitive food and industry labels, plans to expand its facility at the corner of London Bridge Road and International Parkway from 40,000 square feet to 65,000 square feet.

John "Skip" Kight, president, who bought the company in 1990, says employment will grow from 150 to 175 workers, 80 percent of whom are machine operators.

"So 80 percent are blue-collar," Kight said. "We're a big minority hirer.

"We are just fortunate that our customers are growing and are coming back after the economic downturn."

Kight has competition, though. He competes against two local printers and said there are 2,000 to 3,000 printers nationwide.

Some manufacturing went overseas, Kight said.

"Some of it did go to Mexico and South America because it followed the textile industry," Kight said. "Some of did go to China but the lead times are too long."

Kight might produce and deliver his labels to customers in one to two weeks.

By contrast, Chinese label-makers might deliver their products in six to eight weeks, Kight said.

In October 2008, the Virginia Beach Economic Development Authority approved a $65,000 Economic Development Investment Program grant for Kight's company.

Cigarette taxes fund the grants, given to new or expanding companies in Virginia Beach, if they meet certain job and salary targets.

The authority approves or denies the grants based on a staff review of the company's request.

The Virginia Small Business Financing Authority approved a $4.45 million bond for Kight's company Aug. 18.

About $1.24 million is a refinancing of a $2.25 million bond issued by the VSBFA in 2000 for the company, according to documents filed with the VSBFA.

The remainder will finance the company's expansion, the documents said, which includes construction, $1.3 million; machinery and equipment, $1.75 million; and $75,000 for legal fees.

George Consolvo, an attorney with the law firm of Kaufman & Canoles and Kight's bond counsel, said SunTrust Bank is expected to buy the bond and then loan the money to Kight.

But SunTrust has not issued a formal commitment yet, Consolvo said.

Kight was very positive about doing business in Virginia.

"I am very high on Virginia as a place to do business and Virginia Beach as a place to do business; it's a healthy business climate."

Service Link Loan Care, which provides loan services, has added more than 150 jobs in 18 months and added 10,000 square feet of office space at its call center at 3637 Sentara Way, Suite 303, in Virginia Beach.

ServiceLink leases 50,000 square feet, including temporary space, said company spokesman Dan Mahoney.

The company's lease agreement stipulates that the landlord's name remains confidential, Mahoney said.

The new jobs vary, from customer service and administrative to collections, loss mitigation and foreclosure support positions, Mahoney said.

A quick Internet search shows that the company is advertising a plethora of positions. Compensation is confidential, however.

"As a matter of policy, we don't disclose salary," Mahoney said.

The company expanded to meet the demand in loan servicing functions from current and anticipated clients, Mahoney said.

LoanCare has been in Virginia Beach since February 2007, Mahoney said. ServiceLink acquired LoanCare May 31, 2009.

ServiceLink services approximately 135,000 loans for more than 80 companies in 50 states, totaling approximately $20 billion in loan balances, the company said in a statement.

The firm is a division of FNF Servicing Inc., a wholly owned subsidiary of Fidelity National Financial Inc., a publicly traded company.

On Aug. 1, 2005, the company acquired Service Link LP for $110.2 million in cash.

Florida-based Fidelity National Financial also owns Chicago Title and Lawyers Title, two title insurers.

The two firms were bought in a fire sale from bankrupt Richmond-based LandAmerica Corp., felled by poor management and the financial meltdown.nib