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.
Windemuller Electric, Inc.
Traverse City, Michigan
Total Project: $1,665,830
MCDC Loan Amount: $677,000
Lender: Macatawa Bank, Fred Lake
Job Impact: 237
Wineguys LLC purchased and renovated this unique building in downtown Petoskey. Palette Bistro is an upscale full service restaurant that specializes in Mediterranean cuisine and wine. Enjoy a beautiful view of the bay in either the first or second floor dining room. The four business partners expanded the seating, added a second floor balcony and an outdoor deck for seating in the warmer months. The restaurant seats over 100 individuals.
Entrepreneur Sanjeev Khanna owns several hotels in Michigan and is now using the SBA 504 Loan Program for the third time to finance another one in Grand Blanc. The 82-room Wingate by Wyndham hotel has conference rooms, an exercise room, indoor pool, and a breakfast area
The SBA loan in conjunction with Wolverine Bank allowed Sanjeev to purchase this hotel with only 15% down. In addition, Sanjeev received a low interest rate that is fixed for 20 years.
For more information on Wingate by Wyndham Grand Blanc MI (Surya Hosp) please visit www.wingatehotels.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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Wolverine Metal has been in operation since 1957 and is continually looking for ways to diversify and add value for their customers. With new contracts from Magna, Duncan Aviation, Perrigo and Whirlpool they needed to purchase equipment to meet current customer demands while also planning for the future. The newly acquired pieces of equipment will allow the company to deliver faster turnaround times, increase capacity for more projects, improve quality and improve efficiency. The company will benefit from low fixed-rate long term financing via the SBA 504 Loan Program provided through the MCDC in conjunction with Omni Community Credit Union
Wolverine Metal Stamping, Inc. (WMS), with its origins dating back to 1957, has been the quintessential example of a well-operated manufacturer that has not only survived the rough economic climate over the past few years, but have continued to grow and expand its product offerings and customer base. Eric Jackson, who took over management and ownership in 1999, has guided the company to being an industry leader in manufactured and precision metal stampings for a variety of industries, including furniture, appliance, and most recently, automotive/logistics.
When WMS had the opportunity to continue to diversify and grow its customer base by acquiring new equipment, they partnered with Omni Community Credit Union and between their Omni lender and MCDC, they acquired the new equipment and also refinanced some existing equipment debt, resulting in not only a below-market fixed rate for 10-years, but also significantly improved company cash-flow, which was very important for WMS as capital was preserved to support continued revenue growth. This was Omni's 2nd partnership with WMS and the SBA, which satisfied a number of Public Policy goals, including aiding a borrower in manufacturing sector, in a Rural Development area, which was also in a Labor Surplus Area (Berrien Co). The acquisition of the new equipment was also expected to result in the addition of three full-time jobs for WMS, to go along with the existing 90 employees.
For more information on Wolverine Metal Stamping, Inc., please visit www.wms-inc.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!