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 entailed the purchase of equipment from Michigan Metal Technologies for Aerostar Castings. Aerostar Castings & Molds provides foundry and molding capabilities primarily to the automotive industry, but also services other industries such as furniture, medical, and electronics. Lalit Goel and Paul Kepreos are the owners of Aerostar Casting and are excited about the potential for growth in their business with this purchase. They do business with companies such as Honda, Johnson Controls and Eaton Corporation. This minority-owned business was established over 5 years ago and shows excellent management skills. This equipment purchase was made possible by Comerica Bank and MCDC's SBA 504 Loan Program. The owners received a fixed 10-year rate with only 10% down. This is Aerostar's 2nd SBA 504 loan with MCDC.
AG Manufacturing assembles electrical wire harness connector components for the automotive and aerospace industries. The manufacturing facility is a well-constructed 55,000 square foot building that features 12 front offices, a large conference room, and 4 truck bays. AG Manufacturing, Inc. is 100% owned by CEO/President, Victor Edozien, who is African-American. He has a B.S. in Electrical Engineering, an M.S. in Engineering, and an M.B.A. in Finance and Operations Management. Victor has over 10 years of experience in strategic planning, revenue growth strategy, acquisition strategies and business improvement in private equity/leveraged buyout situations. Other relevant experience includes working with automotive OEM supply chains on supplier cost and competitiveness improvement. The attractive terms of the SBA 504 Loan Program made this opportunity a reality for Mr. Edozien.
Airpark Plastics, LLC and Vantage Plastics are sister companies that are high volume manufacturing companies taking raw plastic materials and melting them into items such as pipe/tubing, weather stripping, window frames, plastic sheeting, etc. They also offer complete design, prototype, tooling, molding, and fabrication services. Paul Aultman used the MCDC SBA 504 Loan Program in the past to purchase and finance a building in June of 2007. With this new project, Mr. Aultman was able to obtain a low rate loan with only 10% down. This again was made possible through the use of the SBA 504 Loan Program and by partnering with MCDC and Citizens Bank.
Airway Lanes is an established bowling center that has been in operation since 1961 located in Waterford, MI and recently purchased by Jim Selke with the assistance of the SBA 504 Loan Program. Airway Lanes offers open and organized leagues of bowling, volleyball, horseshoes, and darts. There is a lounge and grille on the premises, along with a banquet room that supports private parties. The facility also has a Tiki bar and dance floor, with new line dancing classes starting in the fall. The bowling alley has 32 AMF synthetic lanes and has the highest number of published award scores, on a per lane basis, in the area. Airway Lanes also offers an "in school bowling program", free of charge to local schools and they host many different bowling tournaments and fundraisers throughout the year.
Airway Lanes is the second bowling center acquired by Mr. Selke and both were acquired with SBA 504 financing. He is a big fan of the 504 program, which allows him to lock in his financing costs for 20 years at very attractive long term fixed rates. He can then concentrate on running the business and implementing many fun concepts for his customers to improve their bowling experience. For more information on Airway Lanes, please visit www.airwaylanes.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!
Incorporated in 1923, Algonac Cast Inc. is a prime producer of nonferrous castings and finish hardware, engineering, design and production of brass, bronze, copper, manganese, and aluminum alloys. They are specialists in industrial and marine castings and have a completely equipped wood and metal pattern shop that allows them to produce patterns from print to finish.
Algonac Cast is one of several projects Mason Richards has been involved with that has utilized the SBA 504 Loan Program through MCDC. This project is for the purchase of a building in Algonac. With years of experience owning and operating manufacturing businesses, Mason has acquired and turned several companies around for a profit and Algonac Cast is another excellent opportunity to do the same.
For more information on Algonac Cast, please visit www.algonaccast.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