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.
Alphi Manufacturing, Inc. is a manufacturer of tubular products for the automotive industry. Established in 1959, the 75,000 sq. ft. facility produces carbon steel tubing, "hot" and "cold" exhaust pipes, anti-vibration bushings, air conditioning - AD tubes, instrument panel tubes, windshield wiper connecting rods, catalytic converter oxygen sensor tubes and rear suspension tubes. Developed in a rural area, this property satisfies a public policy goal. President Alan Symonds and Chief Financial Officer Philip Marshallsay, have co-owned this business since 1999. Together, they currently employ over 100 people.
Total Project: $4,200,000
MCDC Loan Amount: $1,505,000
Lender: Consumers Credit Union, Darci Robinson
Job Impact: 16
This is the second SBA 504 equipment loan for American Compounding Specialties (ACS), which has experienced positive growth since it was established three years ago. ACS is a contract manufacturer of thermoplastics for original equipment manufactuer marketers of plastics. Randy Rudisill left Asahi Thermofil, Inc. in Fowlerville after nearly 21 years as their President. In 2004, Randy's efforts to reduce waste at Thermofil earned them the distinction of becoming Michigan's 78th Clean Corporate Citizen Award winner as presented by Governor Granholm and the Department of Environmental Quality. Dave Donie began working at Thermofil 24 years ago, while still in high school. Upon leaving Asahi Thermofil, Dave was their VP and GM with responsibility for manufacturing, technology, customer service, analytical laboratory, and sales of $100MM.
American Gymnastics Institute, Inc. (AGI) began in 2002 by husband and wife team Lawrence and Linda Miller. AGI provides gymnastics training for recreational and competitive athletes with a focus on new skills, safety and having fun. All of the coaches are safety trained and certified through USA Gymnastics.
This project involves the purchase and addition of an existing building in Chesterfield Township. AGI had been leasing their building since inception, and was able to purchase it with the help of Michigan Schools & Government Credit Union and the MCDC SBA 504 Loan Program. After the addition, there will be rooms for dancing, hosting birthday parties and other events. By taking advantage of the SBA 504 Loan Program, Lawrence and Linda obtained low rate financing with only 10% down.
For more information on American Gymnastics Institute, Inc., please visit www.agimichigan.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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American Recycling Center, Inc. (ARC) has been in business since 1993 and is owned 100% by Larry Fisher, Jr. ARC is a "clean" rubber recycler (no tire rubber) that provides premium rubber products for various surfacing operations such as athletic fields and playgrounds. ARC is diversifying their operations by entering the wood pellet manufacturing business. The manufacturing and sale of wood pellets is the fastest growing biomass fuel industry in the world. This SBA loan was used to finance new equipment to produce wood pellets.
Low rate financing and a fixed rate loan are benefits that Larry received from partnering with the MCDC.