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.
Advanced Eye Care
Total Project: $384,142
MCDC Loan Amount: $160,000
Lender: PNC Bank, Dale Brown
Job Impact: 8
It is unique to hear about how some individuals wind up in certain professional fields, and Dr. John Owings’ path started in high school. After sustaining spinal injuries playing basketball in high school and getting non-invasive treatment and some spinal adjustments for his injuries, Dr. John Owings decided that a chiropractic career was his desire. So, following his BA degrees from the University of Alaska and his Chiropractic Doctorate from Palmer College in 1996, Dr. Owings and his spouse, Susan, who is also a licensed chiropractor, started Advanced Family Chiropractic Center, PC in Grand Rapids. Dr. John Owings maintains his membership and involvement in several chiropractic societies and organizations and both he and his spouse, and his practice are firm practitioners of chiropractic treatments without the use of drugs or surgery, and aims to treat patients’ chronic or degenerative conditions thru a personalized program including chiropractic adjustments, nutritional counseling, massage therapy, exercise, and stress management.
In 2007, the practice acquired their current office in Grand Rapids, and after owning it for five years, the market valuation on their property was nearly equal to the mortgage outstanding. Facing this, they turned to United Bank of Michigan for a refinance from their former bank, and the lender utilized the SBA 504 Temporary Refinance Program and Advanced Family Chiropractic Center, PC was able to not only earn a long-term, below-market rate on a substantial amount of the refinanced loan, but they were also able to save a significant amount of cash due to the SBA 504’s 90% loan-to-value allowance. Additionally, United Bank of Michigan was able to earn a good, new relationship that otherwise might not have been available if not for the SBA 504’s Temporary Refinance Program.
For additional information about Dr. John Owings and Advanced Family Chiropractic Center, PC, please www.drjohnowings.com. For additional information on United Bank of Michigan, please visit www.unitedbankofmichigan.com, and to see how Michigan Certified Development Corporation can help fund your business, please visit www.michigancdc.org, Michigan’s #1 SBA Lending Partner!
Advanced Veterinary Care Group, PLLC was started in 2008 by Dr. Eric Larsen and Dr. Dennis Elmer. Advanced Vet is not your traditional veterinary hospital: they offer digital ultrasounds, plated cruciate repair, orthopedic and soft tissue surgery, video endoscopy, digital X-ray, MRI's, acupuncture, animal rehabilitation, and traditional Chinese herbal medicine. Both Doctors graduated from Michigan State University’s College of Veterinary Medicine and have years of experience.
The Doctor’s have been leasing their location for years but had the opportunity to purchase the building. Comparing the costs of a mortgage payment and other expenses of owning a building against rental expenses was immeasurable. Working with their lender at PNC Bank and MCDC to obtain the best possible financing package was seamless. The excellent financing package offered by the SBA 504 Loan Program requiring only 10% down was a perfect fit. They also benefited from a 20-year loan.
For more information on Advanced Veterinary Care Group, PLLC please visit www.advancedveterinarycare.net. 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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Advanta is a family-owned and operated company that began in 1997. Advanta designs and manufactures all types of returnable racks and dunnage (shipping container packaging). They manufacture everything from simple janitorial carts and step stools, to complex shipping racks and containers. They also have plastic corrugated and foam fabrication capabilities in house, in addition to power coating and polyurea coatings. They can repair, alter, clean, and paint equipment to any specification. They can design a new rack from either a supplied part or math data. This project involved the purchase of equipment for work that was previously outsourced. With the help of the MCDC SBA 504 Loan Program, Advanta was able to finance the equipment for 10 years.
Aerospace Risk Management Group is an insurance agency that specializes in aviation insurance. Both Adam Heinlein and Rick Turner are licensed pilots and avid aircraft enthusiasts who purchased Aviation Insurance Agency, and changed the name to Aerospace Rick Management Group, Inc.
Since 2004, they operated out of a leased location where rent was becoming very expensive. By partnering with MCDC and MSU Federal CU, Adam and Rick purchased and renovated a 5,064 sq ft office condominium unit in Grand Ledge. This renovated building gives them ample room for themselves and available tenant space. Now, their mortgage payments are lower than their prior lease payments!
For more information on Aerospace Risk Management Group, please visit www.avnins.net 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!