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.
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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The Villager Inn is located in the City of Inkster in Central Wayne County. This property features 78 rooms, a manager's apartment, an outdoor pool and 2,178 sq. ft. restaurant. Mr. Patel is an experienced hotel operator and currently owns and operates a Best Western in Fort Wayne, Indiana, with other family members. By partnering with the MCDC the borrower was able to take advantage of long-term, fixed-rate financing for a portion of this purchase.
Mike and Lori Vinkier currently own two Spartan Grocery stores in Yale and Wadhams, MI. After an independent hardware store building became vacant in Almont, the Vinkiers decided to start their third location. The SBA 504 loan was used to purchase and renovate the building, while paying off some existing debt.
The Vinkier’s have been successful by locating their stores in small towns, which are not large enough to support the “big box” stores, thus eliminating much competition. By aligning themselves with Spartan, one of the largest grocery suppliers in the country, they receive competive pricing and standardized, recognizable products.
For more information on Vinkier Foods, please visit www.Vinkierfoods.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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