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 and renovation of an existing building on Lawrence Road in Centerline, which now houses the new location for AR Repairs Baker's Kneads, Inc. For the last 15 years, AR Repairs has been leasing their current building on Ryan Road in Warren, but they have outgrown that location. Their old location was 8,000 sq. ft., which the new location will be almost 24,000 sq. ft. The new location will have a large parts warehouse and also a large training room that will allow AR to train up to 20 people at once. The training room will allow technicians to gain hands-on experience by working on actual commercial restaurant equipment. Today, AR is the largest restaurant, foodservice, and bakery equipment factory authorized part and service dealer in the Midwest. AR Repair's is owned by Tony Rapanotti and his sister, Lisa Raponotti. Without the help of the MCDC SBA 504 Loan Program, Tony would not have been able to afford the new building, which will enable his business to grow and to be more efficient.
Kevin and Claudia Ganton have managed the daily operations of Arbor North for Kevin's father for several years, but they did not own the real estate. When Kevin's father decided to sell the building to Kevin and Claudia, the Ganton's jumped at the opportunity. The financing was made possible by the MCDC SBA 504 Loan Program and partnering with County National Bank. Arbor North is a family-oriented assisted living facility located in Jackson. Kevin's father has provided senior citizens with various living options and several locations throughout Michigan for over 40 years. Kevin and Claudia are continuing that family tradition by now owning their own location.
Arby's - C.H.E.W., Inc.
Total Project: $1,970,725
MCDC Loan Amount: $805,000
Lender: Huntington National Bank, Kimberly Banat
Job Impact: 40