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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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.
Betzler Funeral Home performs various services such as complete funeral services, crematory services, aftercare, and pre-planning. They also sell caskets and acknowledgement cards. The expansion will be 6,328 sq. ft. in addition to the already existing 8,700 sq. ft. The addendum will include three large rooms, each with a kitchen and additional restrooms. Over the last few years, the funeral home teamed-up with Life Story to become a Life Story Funeral Home. The company partnerships with funeral homes to offer unique memorial services. More and more families are opting for celebration services, rather than the traditional funerals. The funeral home serves more like a banquet hall, where Roy allows food to be catered or families to bring in food dishes. This is why he is looking to add three larger rooms to accommodate the banquet/funeral demand.
This project involved the construction a new building to house the expansion for Big George's Home Appliance Mart, which has operated at its current location on Stadium Blvd. since 1959. They built a new 19,000 sq. ft. retail showroom on the adjacent lot. The new store features a large open showroom and a "green design." Big George's has a solid reputation in the Ann Arbor area selling major appliances and electronics, outdoor living appliances, portable electronic devices, etc. Abbud "Bud" Bishar runs this business with the help of his son Mark, and his wife Mona. By using the SBA 504 Loan Program, Bud was able to obtain 100% financing by using existing equity in the property.