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.
David Muhleck has owned and operated Allegra Print & Imaging of Okemos since 1990. He provides cost-effective print communications and marketing programs for businesses. David has also implemented an in-house graphic design service with advanced printing and mailing capabilities to fit any organization.
David has been operating Allegra out of a leased space for several years and since they are growing and hiring more employees, he decided to purchase a larger building. This SBA 504 project is for the purchase and renovation of an office building located on Jolly Road in Okemos. This move allows them to improve efficiency by arranging the new building more logistically.
By partnering with the SBA 504 Loan Program, Dave was able to finance the purchase of the building with only 10% down. He also received a 20-year loan with a low fixed interest rate.
For more information on Allegra Print & Imaging of Okemos, please visit www.allegra-okemos.com. 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!
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Total Project: $330,220
MCDC Loan Amount: $139,000
Lender: Chemical Bank, Melissa Spranger
Job Impact: 8
Sterling Heights, Michigan
Total Project: $800,000
MCDC Loan Amount: $248,000
Lender: Genisys Credit Union, Allen Mitchell
Job Impact: 2
Bill Yim has been in the drycleaning business for approximately six years. He has operated two locations, one in Clinton Township and one in Harrison Township. Both of thse locations were leased locations. With the help of the MCDC and Northpoint Bank, Mr. Yim has been able to purchase his own building in Chesterfield Township. He will be relocating the Harrison Township location to this new building. By taking advantage of the SBA 504 Loan Program, Mr. Yim was able to obtain low rate fixed financing for the MCDC portion of his loan.
Started by husband and wife Timothy and Bridgett Lambdin, 45th Parallel Enterprises L.L.C. is a small business in Suttons Bay that’s been around since 1996. Since inception, Tim and Bridgett have leased their space, but then they had the opportunity to purchase it. 45th Parallel Enterprises operates both 45th Parallel Cafe and 45th Parallel's Candy World out of two adjacent condominium suites located in a perfect location on Broadway. The cafe offers breakfast specialties, salads, soups, sandwiches, burgers and gourmet coffee while the candy shop offers a selection of fudge, popcorn, giant apples, gift baskets, all which can also be purchased online.
This project meets a Public Policy Goal of aiding rural area businesses development is and 50% women owned. With the help of the SBA 504 Loan Program, Tim and Bridgett purchased the building with a low down payment and fixed interest rate for twenty years.
For more information on 45th Parallel Enterprises L.L.C., please visit www.45thparallelcafe.com or www.45thfudge.com. For more information on how Michigan Certified Development Corporation can help fund your business, please visit www.michigancdc.org, Michigan’s #1 SBA Lending Partner!