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.
Williams-Bayer Industries (formed in 2001) manufactures and assembles parts for the domestic big three automakers as well as for the major Japanese transplants (Honda, Toyota, and Nissan). The company provides CNC tube bending, cut off, catalytic converter can shells, welding, inspection and assembly processes. The company also can provide high-volume metal stamping up to 350 tons. The company is a minority supplier with the day-to-day operations being run by Mr. Williams.
The company is a ISO/TS-16949-2000 company, and is also a certified Minority Business Enterprise with accreditation from the Michigan Minority Supplier Development Council.
Williams-Bayer was able to reduce its occupancy cost, and solidify its capital base, by purchasing the building that it had been leasing using the low equity and long-term fixed interest rate provided by the SBA 504 Loan Program.
For more information on Williams-Bayer Industries, please visit www.Williamsbayer.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!
During SBA Director Karen Mill’s visit to Michigan last week, she took the opportunity to visit with Wilbert Williams, of Williams-Bayer Industries; to tour their plant located In Westland, MI. MCDC and PNC Bank partnered together to put together a 504 loan for Williams-Bayer last year and were delighted to be part of the Director’s visit. For more information on Karen’s visit here: http://www.michigancdc.org/news/sba-director-karen-mills-visits-williams-bayer-industries
Windemuller Electric, Inc.
Traverse City, Michigan
Total Project: $1,665,830
MCDC Loan Amount: $677,000
Lender: Macatawa Bank, Fred Lake
Job Impact: 237
Wineguys LLC purchased and renovated this unique building in downtown Petoskey. Palette Bistro is an upscale full service restaurant that specializes in Mediterranean cuisine and wine. Enjoy a beautiful view of the bay in either the first or second floor dining room. The four business partners expanded the seating, added a second floor balcony and an outdoor deck for seating in the warmer months. The restaurant seats over 100 individuals.
Entrepreneur Sanjeev Khanna owns several hotels in Michigan and is now using the SBA 504 Loan Program for the third time to finance another one in Grand Blanc. The 82-room Wingate by Wyndham hotel has conference rooms, an exercise room, indoor pool, and a breakfast area
The SBA loan in conjunction with Wolverine Bank allowed Sanjeev to purchase this hotel with only 15% down. In addition, Sanjeev received a low interest rate that is fixed for 20 years.
For more information on Wingate by Wyndham Grand Blanc MI (Surya Hosp) please visit www.wingatehotels.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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Wolverine Metal has been in operation since 1957 and is continually looking for ways to diversify and add value for their customers. With new contracts from Magna, Duncan Aviation, Perrigo and Whirlpool they needed to purchase equipment to meet current customer demands while also planning for the future. The newly acquired pieces of equipment will allow the company to deliver faster turnaround times, increase capacity for more projects, improve quality and improve efficiency. The company will benefit from low fixed-rate long term financing via the SBA 504 Loan Program provided through the MCDC in conjunction with Omni Community Credit Union