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.
Animal Crackers Pet Salon offers kenneling, training, doggy daycare and grooming. Not having any experience in pet grooming, Kelly worked without pay as a groomer in order to learn the trade. After a year of training, she then decided to start off small and leased a space to start her own business. Over the years she built up her clientele, grew the business and started leasing larger spaces. The landlord eventually offered to sell her the building. Kelly couldn’t pass up the opportunity to enlarge her space, hire more employees and build more kennels. She now has enough space so clients can walk in and out of the kennels to visit their pet at any time.
Kelly put long-term growth ahead of immediate riches and it definitely paid off. By partnering with MCDC on the SBA 504 loan program, Kelly was able to purchase her building for only 10% down. She also received a low fixed interest rate for 20 years.
For more information on Animal Crackers Pet Salon, LLC, please visit www.animalcrackershartland.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!
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Animal Health Clinic has been in business in Fenton since 1989. It is owned by Sandra Smith, D.V. The clinic specializes in treating small animals, mainly cats, dogs, and other household pets. Due to growth, the owner purchased a building and renovated it. The new building has 8 treatment rooms, an operating room, isolation room, and a surgery room. There is also a grooming service and a pet physical therapy business in the building. The new space has allowed Dr. Smith to increase her capacity and hire new employees. By partnering with MCDC and the SBA 504 Loan Program, Dr. Smith was able to take advantage of a low fixed rate offered by the program, as well as a low equity requirement.
Ann Arbor Rent-All LLC (formally A-1 Rental, Inc.) has been a family owned business since 1950 and has over 45 years of service in the Ann Arbor region. Douglas and Stephanie Schoch, who ran a competitor rental company, were eager to purchase Ann Arbor Rent-All when the opportunity arose because it gave them growth opportunities and put them in a better location. This SBA 504 project was for the purchase of a new building, renovations, and new equipment.
As Douglas and Stephanie continue to operate both businesses with high visions and standards they are now becoming established as one of the premier rental companies in Southeast Michigan. This project meets a Public Policy Goal of assisting businesses owned by women as well as providing new jobs.
For more information on Ann Arbor Rent-All, LLC please visit www.dexterrentall.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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Annie's Children Center was purchased in May 2003. Since that time, Deborah and Allan Barnes have operated the Center out of leased space. In 2006 the Barnes successfully utilized the SBA 504 Loan Program to purchase the land and building they had been renting. This made good economic sense for the business, and since they didn't have to move to purchase a building, they had no interruption in service.
The Apollo Restaurant was established over 30 years ago. The current owners have built the business into a great success and a Davison area icon. They decided to retire and sell the business to their nephew Tom Stavridis, Cousin Alex Karatza and friend George Popoff. The three new owners reflect over 60 years of experience in the restaurant world. They are planning to make improvements to the Apollo by keeping it open 24 hours a day. They also plan to include catering and banquet facilities. This purchase was made possible with the help of Franklin Bank and MCDC's SBA 504 Loan Program.