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.
In 2000 David and Audrie Michael both needed work during the summer months while attending college. As true entrepreneurs, they started their own retail store, Momentum, and attended college during the school year. Since they were so successful, they expanded with several locations in resort towns in northwest Michigan. David and Audrie sought to finance the real estate for one of their Charlevoix stores and wanted to utilize the SBA 504 Loan Program. David and Audrie were able to take advantage of the long-term fixed rate financing for their store by working with the MCDC. This was also made possible from the help of Charlevoix State Bank.
Michigan Automatic Turning in Howell is owned by Predrag Lazic and is a precision screw machine product manufacturer. They provide spine rolling, CNC milling, grinding, hobbling, and many other machining services for transmission shafts and gears. After leasing his space for quite some time, Predrag decided to purchase a new building. The new building is 112,500 sq ft which includes shop and office space. Predrag experienced the great benefits of the SBA 504 Loan Program including low rate loans and fixed financing.
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!
Michigan Rheumatology Group, P.C. specializes in the diagnosis and treatment of conditions affecting joints, muscles, soft tissues, and the immune system. Dr’s McIntosh-Moore and Karrar started the business in 2004 and have been leasing their office space.
They jumped when the opportunity arose to purchase and renovate the building they were leasing, while keeping the tenants. With the outstanding benefits the SBA 504 Loan Program offers, they were able to obtain a low interest rate with only 10% down.
For more information on Michigan Rheumatology Group, P.C., please visit www.mrgpractice.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!
Michigan Specialty Coatings is an epoxy flooring company that started in 2003, focusing mainly on commercial applications. The company uses products specifically formulated to work on floors that are subject to the temperature changes found in Michigan. Their main services include urethane mortar systems, methyl methacrylate systems, and tank/wall coatings.
The company had previously operated out of a building that was too small, thus requiring outsourcing of the work. With the purchase of the new 27,000 sq.ft building, they can mix, store, and work with the product in-house, rather than at the customer’s location.
By using the SBA 504 Loan Program, the company was able to make the purchase with only 10% equity and enjoy the 20-year fixed interest rate.
For more information on Michigan Specialty Coatings, please visit www.mscfloors.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!
Michigan Supply Company (MSC) has been in operations for nearly 140 years. The company originally sold pipe and valve fittings to municipalities and now is a distributor of these items, plus plumbing and heating supplies for commercial, industrial, and institutional facilities. Three key employees Steven Reader, Michael Wise and Brian Dorian decided to team up and purchase the company and building. By partnering with the MSU Federal Credit Union and the MCDC, Michigan Supply Company has benefitted from low rate financing and a fixed rate loan for 20 years.
For more information on Michigan Supply Company, please visit www.michigansupply.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!