Issue link: http://winesandvines.uberflip.com/i/297564
p r a c t i c a l w i n e r y & v i n e ya r d M ay 2 0 1 4 79 tor and account manager for Mount Eden. "Because our SVB Wine Division focuses exclusively on premium winer- ies, they did not need to explain things to us like they would to a generalist bank, or jump through other hoops such as field exams." Financial performance, management skills and collateral are basic consider- ations taken by any commercial lender. However, SVB's decision to approve the Pattersons' loan was based not just on the basics, but on much more: Mount Eden Vineyards' solid, longstanding reputa- tion for making quality wines, 60-plus- year history and iconic brand reflected the bank's wine industry focus. "Mount Eden Vineyards is one of the brands that over time has defined the California wine industry for style and quality, and continues to do so," adds Aguilar. As a brand, Mount Eden Vineyards holds plenty of cachet with SVB's clien- tele of high-net-worth technology CEOs, private equity executives and venture capitalists. According to Keith Hanley, senior credit officer and co-division manager of the SVB Premium Wine Division, "The synergy between ultra-premium wine and our technology ecosystem of wealthy customers is high. One part of the SVB value proposition is to build a bridge between the two customer segments by bringing them together via VIP tastings, private-luxury wine gatherings and other exclusive events." The Mount Eden business plan with respect to the acquisition of the Cinnabar property highly resonated with SVB. "The plan allows the company to expand production profitably while maintaining its identity as a Santa Cruz Mountains producer," adds Aguilar. Valuable assets from the sale included a state-of-the-art production facility, qual- ity vineyards and use permit — according to Aguilar, the latter is valued as a line item in any winery's appraisal. When considering a potential winery client, SVB reviews more than just the standard lending ratios. "Because the w i n e B U S i n e S S Mount Eden Vineyards' crush pad and 1.83 acres of Merlot and 5.6 acres of Cabernet vineyards are located above the Santa Clara Valley (Peter Martin Ray vineyard is under separate ownership).