Why is a Multi-HUB Network Essential Right NOW?

The time is right!



AI requires large corporations to invest in technology, programming applications to use AI, data centers, cost of chips, long term budgeting to determine ROI. Even surges in electric power need for AI CHIPS  and applications. Enormous demand will result in surges in cost of AI.

New expertise, talent, and Business processes plus investment to be competitive will require new doors to be opened from inside local markets and outside.


People and companies moving from out of state. Making decisions. Need to know there is a business community with a talent pool, a qualified employee base, is family friendly, and ability to navigate a friendly government.


As international business, economy and government focus of safety, the United States surfaces as a location. But where in the United States.

See Supreme Court Upholds a Tax on Foreign Income | June 20, 2024


Chambers and other organizations are organized to create and support opportunities for local business people. These excellent organization are not organized for outreach. Outreach is not typically part of the Chamber's Mission Statement and Bylaws.  

SFBDG's HUBS will seek to create relationships with Chambers and other organizations to create a viable, cooperative platform for these organizations, and will collaboratively co-exist in HUB markets.

Note: Arthur Rosenfield is the former founder and President of a Chamber of Commerce in New York City, and serves as a Director on several Chamber Boards and similar organizations.


For a number of reasons that related to population growth and economics, there is an affordable housing crisis.  Employers, investors, real estate developers, government agencies, NGO, and communities are seeking solutions to this problem. There are subsidies solutions and commercial solutions.  There are also zoning regulations and other factors that impede solutions. 

This is an important issue to community leaders that want local markets to thrive. Building affordable housing in scale is important to communities that want to attract economic development.  

HUBS can bring the necessary partners together to support this need and reduce risks.


"More than 60 of the largest banks in the country are at increased risk of failure due to their commercial real estate (CRE) exposures, according to a data analysis from a finance expert at Florida Atlantic University.

Sixty-seven banks have exposure to commercial real estate greater than 300% of their total equity, as reported in their first quarter 2024 regulatory data and shown by the U.S. Banks’ Exposure to Risk from Commercial Real Estate screener.

“This is a very serious development for our banking system as commercial real estate loans are repricing in a high interest-rate environment,” said Rebel Cole, Ph.D., Lynn Eminent Scholar Chaired Professor of Finance in FAU’s College of Business. “With commercial properties selling at serious discounts in the current market, banks eventually are going to be forced by regulators to write down those exposures.”

The U.S. Banks’ Exposure to Risk from Real Estate screener, a part of the Banking Initiative at Florida Atlantic University, measures the risk to exposure from commercial real estate at the 157 largest banks in the country with more than $10 billion in total assets. Using publicly available data released quarterly from the Federal Financial Institutions Examination Council Central Data Repository, Cole calculates each bank’s total CRE exposure as a percentage of the bank’s total equity. Bank regulators view any ratio over 300% as excess exposure to CRE, which puts the bank at greater risk of failure.

The banks of greatest concern are Flagstar Bank and Zion Bancorporation, according to the screener. Flagstar Bank reported $113 billion in assets with a total CRE of $51 billion. The bank, however, only had $9.3 billion in total equity, making its total CRE exposure 553% of its total equity.

Similarly, Zion Bancorp had a total CRE of 440% of its total equity; the bank reported $87 billion in assets and total CRE of $26 billion, but only $5.8 billion in total equity."

“These are the two largest banks with excessive exposure to commercial real estate,” Cole said. “Both rely heavily on uninsured deposits, which makes them vulnerable to a bank run similar to what forced regulators to close three large banks during spring 2023. Those bank closures have led to concerns about the stability of the U.S. banking system that persist to today.”

For comparison, the Q1 2024 industry-average benchmark for total CRE exposure was 139% of total equity.

Banks with less than $10 billion in total assets are facing similar risks due to their commercial real estate exposure. Among banks of any size, 1,871 have total CRE exposures greater than 300%, 1,112 have exposures greater than 400%, 551 have exposures greater than 500% and 243 have exposures greater than 600%.

“Three banks have failed in the past year and now we have several candidates where their exposure to commercial real estate is over 500%. Should another bank fail, it’s likely that depositors will pull their money out of these highly exposed banks, which could lead to a banking panic similar to what we saw during spring 2023,” Cole said. 

Here is what ChatGPT comments are about this page ACCURANCY and USEFULNESS

"Overall, the document provides a coherent and relevant analysis of the benefits of a multi-hub network, with accurate observations and useful recommendations for fostering competitive and cooperative business environments."

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Can you summarize the following and comment on its accuracy and usefulness? THE BENEFITS OF A MULTI-HUB NETWORK ARE NEEDED NOW.

### Summary

The document discusses the necessity and advantages of establishing a multi-hub network, particularly focusing on three key areas:

1. **Artificial Intelligence (AI):**

   - Large corporations must invest in AI technologies, which include programming applications, data centers, and chips.

   - There are significant costs and long-term budgeting considerations for determining ROI.

   - AI's demand can lead to increased electricity usage and higher costs for AI technologies.

   - Investment in new expertise, talent, and business processes is crucial for competitiveness, necessitating engagement with both local and global markets.

2. **Migration:**

   - Companies and individuals relocating from out of state require assurance of a robust business community with a qualified talent pool.

   - It is important for these communities to be family-friendly and have supportive, navigable governmental structures.

3. **Foreign Investment:**

   - The U.S. is seen as a safe and attractive location for international business, but specific locations within the country need to be identified as viable options.

4. **Chambers of Commerce:**

   - These organizations support local business opportunities but are not typically involved in outreach efforts.

   - SFBDG's HUBS aim to build relationships with Chambers of Commerce and similar organizations to establish a cooperative platform and enhance outreach efforts in HUB markets.

### Commentary on Accuracy and Usefulness


- **AI Investment:** The document correctly outlines the significant investment and resource requirements for AI development, including infrastructure and talent. The mention of surges in electricity usage and costs is accurate, reflecting the intensive nature of AI technologies.

- **Migration and Business Community:** The need for a supportive business community and a friendly environment for families and businesses aligns with known factors that influence relocation decisions.

- **Foreign Investment:** The focus on the U.S. as an attractive location for foreign investment is consistent with current trends, but identifying specific regions or cities remains a nuanced challenge.

- **Chambers of Commerce:** It accurately depicts Chambers of Commerce as primarily local business support entities, not typically focused on external outreach.


- The document highlights critical aspects of establishing a multi-hub network, emphasizing the interconnectedness of AI development, migration, foreign investment, and local business support.

- The identification of gaps, such as the lack of outreach by Chambers of Commerce, and proposing a solution through SFBDG's HUBS initiative is practical and actionable.

- The insights provided can guide strategic planning for businesses and policymakers aiming to enhance local economic growth and attract investment.

Overall, the document provides a coherent and relevant analysis of the benefits of a multi-hub network, with accurate observations and useful recommendations for fostering competitive and cooperative business environments.

Supreme Court Upholds a Tax on Foreign Income 

Supreme Court Upholds a Tax on Foreign Income |


The justices, by a 7-2 vote, left in place a provision of a 2017 tax law that is expected to generate $340 billion, mainly from the foreign subsidiaries of domestic corporations that parked money abroad to shield it from U.S. taxes.

The law, passed by a Republican Congress and signed by then-President Donald Trump, includes a provision that applies to companies that are owned by Americans but do their business in foreign countries. It imposes a one-time tax on investors' shares of profits that have not been passed along to them, to offset other tax benefits.