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.
This project involved the purchase of new laser-cutting manufacturing equipment and used steel fabrication equipment for two sister companies, Versatile Fabrication and Metal-Line Corporation. Versatile Fabrication is located in rural Muskegon Heights, while Metal-Line Corporation is located in rural Manistee. Brothers, Dan and Joe Balaskovitz, purchased Metal-Line and Versatile from their parents. For over 30 years, Versatile Fabrication has provided Muskegon and the surrounding areas with custom sheet metal fabrication for the automotive, office furniture, and other general industries. Even though they started with sheet metal fabrication, they have made advancements into laser cutting. They have been one of western Michigna's fastest growing laser cutting companies. With the help of MCDC and the SBA 504 Loan Program, Versatile and Metal-Line were able to finance their equipment for 10 years with only 10% down.
Vicinia Gardens of Otsego
Total Project: $3,910,000
MCDC Loan Amount: $1,201,000
Lender: The State Bank, Andrew Gavulic
Job Impact: 40
Victory Lane Quick Oil Change, Inc.
Total Project: $689,000
MCDC Loan Amount: $285,000
Lender: Ann Arbor State Bank, Phil Weiss
Job Impact: 11
Dr. Greg Raspbury has been a practicing veterinarian for 10 years. He has owned his own vet clinic in Trenton since 2003. Dr. Raspbury was contracting his services out to other vets and was performing surgeries at other vet clinics, which was proven to be inconvenient and not cost-effective. This project involved the construction of an addition to Dr. Raspbury's clinic which will allow him to perform surgeries at this location. PNC Bank and MCDC's SBA 504 Loan Program helped this veterinarian be more streamlined and productive. With only 10% down, Dr. Raspbury was able to take advantage of a 20-year fixed-rate loan with a below-market interest rate.
Dr. Oosterhart has been fascinated with chiropractic care since she was very young, with her father being her mentor. One of her dreams was to help everyone recognize the benefits of seeking alternative care to help them achieve and maintain optimal health.
Operating her own Chiropractic Office for more than 15 years, Dr. Kareen Oosterhart was in need of more space for her growing business. Back in 2005, Dr. Oosterhart purchased land in anticipation of building her new facility. With help from the SBA 504 Loan Program offered by MCDC, she was able to construct a new building located on 798 W Mile Rd in Kalkaska. The new building is a showcase for her practice and provides space for future growth.
By using the SBA 504 Loan Program, Dr. Oosterhart was able to finance her new building with little money down and receive a 20-year fixed interest rate. For more information on Village Chiropractic Wellness Center, P.L.C., please visit www.village?chiropractic.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!
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