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.
TJ Lota founded Accurate Mortgage Solutions in 2004. It's a residential mortgage brokerage firm with several sources of financing enabling them to find the best fit for their clients. The business is generated primarily through referrals and his web site. Mr. Lota is licensed in Michigan and Minnesota, and is in the process of becoming licensed in several other states. Please visit www.accurateloans.com.
TJ and his wife also own Bombay Fashions, the largest online retailer for Indian imitation jewelry and accessories. They purchase inventory, mostly from Asian suppliers, and ship to purchasers worldwide. With a large selection of cuffs, bracelets, bangles, earrings, necklaces, scarves, skirts, tunics, handbags, and more, Bombay Fashions boasts eclectic rare finds at affordable prices. The Bella Collection and Bollywood Collection have been particularly popular with the stars and have garnered a lot of attention from major fashion and lifestyle magazines. www.bombayfashions.com.
Mr. Lota was in need of warehouse space for Bombay Fashions due to its growth, and after a lengthy search found the perfect location in Canton, MI. As an added benefit there is sufficient space to move the mortgage company to this location too. With the help of his banker and the MCDC, TJ was able to successfully house his businesses at a very low cost due to the very attractive long term fixed, low-rate financing afforded by the SBA Loan Program. For more additional information on how Michigan Certified Development Corporation can help fund your business, please visit www.michigancdc.org, Michigan’s #1 SBA Lending Partner!
Accuworx was founded in February 2009 by Larry Carter and Jeff Loch, two veterans of the Special Machine Integration and Automation Industry. To house their new company, they purchased a 20,000 sq. ft. building in Temperance. The building provides space for the company's administration as well as production under the same roof. Larry and Jeff realized the benefits of using the SBA 504 Loan Program. Accuworx was able to purchase this new building with only 10% down!
Shelby Township, Michigan
Total Project: $1,850,000
CDC Loan Amount: $759,000
Lender: Waterford Bank, Craig Jones
Job Impact: 54
Started in 2002, Action Paintball Park, LLC is owned and operated by husband and wife James and Debra Michael. They leased two locations and were looking to combine them into one larger location. After a short search they found a facility that will allow them to offer paintball gaming year-round, along with operating their retail store which sells paintball guns, ammunition, and equipment.
The Michaels approached their bank and MCDC about the purchase and were pleasantly pleased working with Jack Johnson and the MCDC Staff. They are very happy with the financing package and look forward to increased sales and better organization of the store with their new location. They are also most satisfied with the long term fixed rate financing for 20 years so they can spend time concentrating their efforts on more competitive games.
For more information on Action Paintball Park, LLC please visit, www.actionpb.com. For more 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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There are few boat dealers that have the breadth, wherewithal, name-recognition and accolades that Action Water Sports has earned over the past 20+ years. Beginning in 1990 by Mr. Jerry Brouwer, Action Water Sports now boasts three year-round, top-notch locations in Hudsonville, Traverse City, and Fenton, as well as a seasonal location at Pine Lake in West Bloomfield, and are Michigan’s dealer choice for new and used MasterCraft, Cobalt, Four Winns and Chaparral boats, and offer a wide range of water sports gear, a fully-stocked pro shop, sell docks and boat lifts, as well as service all makes and models. Some of Action Water Sports’ awards include being named the #1 MasterCraft dealer in the US, a 5-Star Certified Dealer, and being named in Boating Industry’s Top 100 Dealers in North America for 8 years running, including most recently being named the #21 dealer in the nation.
The Fenton location, established in 2007, was birthed from a partnership between Jerry Brouwer and Mr. Gregg Rising, who previously owned another MasterCraft dealer in the Detroit area, and was sold to create the Fenton arm of Action Water Sports, which now Jerry and Gregg equally own and oversee the near-15,000sf retail store and multiple, on-site rack-storage buildings for boat winterizations. Both individuals saw the opportunity to refinance their Fenton dealership using the SBA 504 Temporary Refinance Program, and with the help From The Bank of Holland, they were able to be refinanced easily and Action Water Sports of Fenton was able to earn a below-market, fixed interest rate on a substantial amount of its financing requirement so they can pursue additional growth opportunities and focus on operating goals going forward. Additionally, this project was able to retain the full 13 jobs at the Fenton store.