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 AmeriHost Inn & Suites was constructed in 2000. The 62-room hotel features an indoor pool, oversized whirlpool suites, complimentary in-room coffee service and expanded continental breakfast. The Kellogg Cereal City USA museum is across the street from the hotel. More than 750,000 spectators come to Battle Creek every summer for the International Hot Air Balloon Championships. A minority enterprise, this property satisfies a public policy goal.
Incorporated in 1969 by Glen and Sally Hope, Ampro is a distributor of pallet racks and industrial shelving products for use in the industrial, medical, and automotive industries. They provide material handling and plant safety equipment, storage products, line feed racks, and office furniture. They also offer workspace design and installation of their products.
Glen and Sally were leasing their building for years, but due to the lack of space, they were turning down job opportunities. It became apparent that they needed a larger building. They found a location in Howell that suited their needs perfectly and better yet, the building didn’t need any renovations.
This SBA 504 project was for the purchase of a new building. By using the SBA 504 Loan Program, Ampro was able to purchase their new building with only 10% down.
For more information on Ampro, Inc., please visit www.amproinc.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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Total Project: $376,050
MCDC Loan Amount: $157,000
Lender: Consumers CU, Shannon Rocheleau
Job Impact: 2
Anchor Bay Pitstop Diner, LLC
New Baltimore, Michigan
Total Project: $485,000
MCDC Loan Amount: $189,000
Lender: Advia Credit Union, Dave Karales
Job Impact: 4