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.
Valley Eye Care was started by Dr. Scott Vandenbelt in 2005 in Bay City. Scott is a State of Michigan, board-certified Ophthalmologist. He offers LASIK and cataract surgery, diabetic eye care and glaucoma management, and optical dispensary with wide selection of glasses and contact lenses.
Scott was leasing a building for his practice, but the building was becoming too small for his growing business, so he decided to purchase his own building in downtown Bay City. With this new building, Scott essentially doubled his space! The larger space allows Scott to grow his business by seeing more patients each day. Before, Valley Eye Care saw 20-24 patients per day, 14-16 days per month. With the larger space, he sees 6-8 more patients per day, which equates to approximately 100 more patients per month, and he can do this without sacrificing service.
To finance the building, Scott was looking for a loan that had a fixed interest rate and with a small down payment. Independent Bank recommended using the SBA 504 Loan Program, which gave Scott a fixed interest rate loan for 20 years, with only 10% down.
For more information on Valley Eye Care please visit www.valley-eye-care.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!
Valley Farms Supply, Inc. has nothing to do with farms or farming, but it is a wholesale distributor of ground water pumps and well supplies, primarily supplying well-drilling contractors and homebuilders. They got their name because they were located in an area of Lansing known as Valley Farms. Valley Farms Supply was leasing their previous space in Lansing, but they wanted to purchase their own property. The new property is located near I-96 in the northwest part of Lansing. Valley Farms was able to purchase this property with only 10% down because of the SBA 504 Loan Program.
Van Beek Nutrition, LLC
Total Project: $3,886,455
MCDC Loan Amount: $1,393,000
Lender: Bank of America, Mark Schmidt
Job Impact: 8
Van Beek Nutrition, established in 1997, specializes in nutrition consulting and custom feed manufacturing in the dairy, beef, and swine industries, bringing expert nutritional advice from trained professionals along with quality premixes direct to the producer’s door. Headquartered in Orange City, Iowa and spear-headed by a management team led by Ron Van Beek, its President & CEO and Dr. Kevin Hoogendoorn (DVM), its General Manager, the company manages its mineral premix plants and along with its team of nutritional consultants, the company is well-able to meet its customer needs throughout the entire contiguous US. Following its first mineral premix plant in Twin Falls, Idaho in 2000, Van Beek Nutrition added its second mineral premix plant in Schoolcraft, MI to better serve its clients throughout the Midwest and along the eastern coastline. The second plant is fully equipped with fully-automated batching and micro systems, enabling the facility to produce substantial product, and additionally, the plant is enabled with a rail system on its private site, allowing for much larger shipments as well as efficiencies with transporting. The management team at Van Beek Nutrition found the SBA 504 Loan Program ideal for its second plant in Schoolcraft, MI due to the financing structure with 85% aggregate funding and attractive, below-market rates for a large amount of the project. Additionally, being located in Schoolcraft, MI, this opportunity also satisfied a key Public Policy goal for Rural Development.
Vani Foods, Inc., owned and operated by Vijitha Chandrakanthan, offers a large variety of grocery items, Indian movies, facial cream, scrubs, soaps, kitchen appliances, and more. They’ve been operating out of a small leased building for many years and were in need of more space. Vijitha has wanted to own her own building for quite some time and eventually found property just across the street. This new building gave her the opportunity to renovate, expand and design the store with an improved flow for customer efficiency. Today, Vani Foods seems to be thriving in this better location since they get more traffic exposure.
For more information on Vani Foods Inc., please visit www.vanifood.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!
To view more profiles, click here
The first Vehicle Accessories, Inc was established in 2000 by Charles (Charlie) Card along with his slogan, “Our service is our strength with customer satisfaction being our goal.” That’s why Charlie now has expanded to three locations in Flint, Clarkston and Bay City.
Charlie was leasing his Bay City location and wanted to purchase the property. He worked alongside his lender at JPMorgan Chase, who proposed that Vehicle Accessories utilize the SBA 504 Loan Program for his investment. In doing so, he purchased the property in Bay City and financed the necessary improvements with only a 10% down. By partnering with the SBA 504 Loan Program, Charlie’s monthly payment was much less than the previous lease payments.
For more information on Vehicle Accessories, Inc please visit www.4vehicleaccessories.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!
To view more profiles, click here