The SBA 504 Loan Program provides healthy small and medium-sized businesses with long-term fixed rate financing for the acquisition or construction of fixed assets. Projects are financed through a unique public/private partnership that involves private lenders financing 50% of project costs, MCDC covering up to 40% of project costs, and small businesses investing at least 10% of project costs. By taking a secondary collateral position on project assets, SBA provides a “collateral cushion” for the primary lender and reduces the amount of equity normally required of the borrower.
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In October of 2003, Mike Powers purchased an old restaurant located on Gun Lake in Shelbyville. He demolished the building and began construction on a new hotel and restaurant, which was completed in 2005. In 2008, Mike constructed a 200 seat wedding/event pavilion on the property 10 feet off of Gun Lake. This idea has paid huge dividends for Mike. The hotel has become a favorite location for weddings and special events. In 2009, Mike constructed the Fireside Conference Center, which is a multi-media room designed for corporate meetings.
Mike was looking to refinance and consolidate all of his debt into one loan with a lower interest rate. Union Bank proposed using the SBA 504 Loan Program, which gave Mike a 20-year note with a low, fixed interest rate on half of his loan. By using the SBA 504, Mike is saving thousands of dollars a month on interest.
For more information on Bay Pointe Inn please visit www.baypointeinn.com and for additional information on how Michigan Certified Development Corporation can help fund your business, please visit www.michigancdc.org, Michigan’s #1 SBA Lending Partner!
Brent Beacom started his chiropractic practice in 2002. Since that time he has grown his business and he now sees 165 patients per week, well above the average practice of 124 patients per week. His patients also average 40 visits per year, again well above the average of only 17 visits per year. As a result of this growth, Dr. Beacom decided to construct a new building with additional equipment. By using the SBA 504 Loan Program, Dr. Beacom was able to secure long term financing at an attractive rate for this project. Upon completion he projects he will be seeing 275 patients weekly and eventually expects to grow to 400 patients weekly.
Andrew and Mindy Hoffman have owned Bearcat Self Storage, LLC since 2001. While Andy maintains his successful day Job with Genesee Cut Stone and Marble Company, his wife Mindy, works part-time as a cosmetologist and is the operations manager of Bearcat. The Hoffman’s decided to branch out and purchase a second self-storage facility ten miles away in Bridgeport, which consists of 60 units in a variety of different sizes. Also on the property is a rental home that they will lease out to a third party.
With the assistance of Wolverine Bank the Hoffman’s were able to partner with MCDC to take advantage of the SBA 504 Loan Program to lock in a low fixed interest rate loan for 20 years.
To see how Michigan Certified Development Corporation can help fund your business, please visit www.michigancdc.org, Michigan’s #1 SBA Lending Partner!
This project involved the relocation and construction of a new restaurant in Bay City. The move was prompted by the State of Michigan's road project to expand M-84 (West Side Saginaw) to five lanes, which required demolition of the restaurant's old location. The new location is approximately 1/2 mile south of the current location on the same road. The new restaurant will sit on 3.9 acres and is approximately 4,156 square feet, which is about twice the size of the old restaurant. Berger's Tavern is a limited service, family owned restaurant/bar presently operated by Bruce and Michelle Berger (husband and wife). A family business, Bruce has been working in the restaurant since the age of 15 and in 1987 became part-owner. The SBA 504 Loan Program allowed the Berger's to construct their new restaurant with only 10% down.
This project involved the building of Bernard Building Center in Hillman, 40 miles west of Alpena. Bernard Building Center is a home center with a complete line of building materials and a large kitchen and bath center. The entire team does a great job of practicing the employee motto, "Serve others as you would like to be served". With the help of First Bank and MCDC, the Bernard Building Center constructed their new building and by taking advantage of the SBA 504 Loan Program, where they were able to obtain a 20-year low rate fixed financing on the MCDC portion of their loan.