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.
Over the years, Action Water Sports of Fenton (AWSF) has always stored and winterized boats but the demand had grown immensely along with a record number of new customers. This project is for the construction of three boat-storage buildings each consisting of 12,000 sq. ft. to store company and/or recreational boats and trailers during the winter, with each building holding up to 68 boats. Previously AWSF stored many boats offsite which was both costly and inaccessible.
This is the second SBA project for AWSF; The first was for the initial refinancing of their Fenton dealership in 2013, and similar to their first project, their lender at The Bank of Holland wisely utilized the SBA 504 Loan Program that helped AWSF require only 10% equity and allowed them to earn a long-term fixed rate.
For more information on Action Water Sports of Fenton, please visit www.actionwater.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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Action Water Sports of Fenton, Inc
Total Project: $1,388,403
MCDC Loan Amount: $570,000
Lender: Chemical Bank, Philip DeVries
Job Impact: 28
Theresa opened her first adult foster care home in 2001 when she and her husband, Richard, converted their home into a 6-bed facility. Theresa is a registered nurse who has worked with elderly patients for over 25 years. She prefers a small rural, homelike environment where Richard can take care of the maintenance.
Since the demand for adult foster care homes is on the rise, Theresa and Richard expanded by constructing a new 20-bed facility next to their existing home. Addie’s Acres offers services to elderly, developmentally disabled, mentally ill, and Alzheimer's clients. One of the benefits of Addie’s Acres is the "pet friendly" environment where residents can bring their own pets.
With the help from Eaton Federal Savings Bank, MCDC and the SBA 504 Loan Program, Theresa and Richard were able to construct and equip this new building with only 15% down. Addie’s Acres, LLC fulfills a public policy goal because it is a woman owned business.
For more information on Addie’s Acres, LLC please visit www.addiesplace.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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Advanced Eye Care
Total Project: $384,142
MCDC Loan Amount: $160,000
Lender: PNC Bank, Dale Brown
Job Impact: 8
Advanced Eye Care and Contact Lens Center
Total Project: $1,211,000
MCDC Loan Amount: $498,000
Lender: Capitol National Bank, John Creighton
Job Impact: 15