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.
A.R. Brouwer Company, L.L.C.
Total Project: 1,650,000
MCDC Loan Amount: 677,000
Lender: Chelsea State Bank, Mary Lee Penney
Job Impact: 9
TJ Lota founded Accurate Mortgage Solutions in 2004. It's a residential mortgage brokerage firm with several sources of financing enabling them to find the best fit for their clients. The business is generated primarily through referrals and his web site. Mr. Lota is licensed in Michigan and Minnesota, and is in the process of becoming licensed in several other states. Please visit www.accurateloans.com.
TJ and his wife also own Bombay Fashions, the largest online retailer for Indian imitation jewelry and accessories. They purchase inventory, mostly from Asian suppliers, and ship to purchasers worldwide. With a large selection of cuffs, bracelets, bangles, earrings, necklaces, scarves, skirts, tunics, handbags, and more, Bombay Fashions boasts eclectic rare finds at affordable prices. The Bella Collection and Bollywood Collection have been particularly popular with the stars and have garnered a lot of attention from major fashion and lifestyle magazines. www.bombayfashions.com.
Mr. Lota was in need of warehouse space for Bombay Fashions due to its growth, and after a lengthy search found the perfect location in Canton, MI. As an added benefit there is sufficient space to move the mortgage company to this location too. With the help of his banker and the MCDC, TJ was able to successfully house his businesses at a very low cost due to the very attractive long term fixed, low-rate financing afforded by the SBA Loan Program. For more additional information on how Michigan Certified Development Corporation can help fund your business, please visit www.michigancdc.org, Michigan’s #1 SBA Lending Partner!
Accuworx was founded in February 2009 by Larry Carter and Jeff Loch, two veterans of the Special Machine Integration and Automation Industry. To house their new company, they purchased a 20,000 sq. ft. building in Temperance. The building provides space for the company's administration as well as production under the same roof. Larry and Jeff realized the benefits of using the SBA 504 Loan Program. Accuworx was able to purchase this new building with only 10% down!
Shelby Township, Michigan
Total Project: $1,850,000
CDC Loan Amount: $759,000
Lender: Waterford Bank, Craig Jones
Job Impact: 54
Ace Cutting Equipment & Supply, Inc.
Total Project: $1,695,500
MCDC Loan Amount: $699,000
Lender: Bank of America, Lindsay Spitler
Job Impact: 21