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.
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Merrill Fabricators was founded in 1968 as a single person operation. The company has grown significantly over the last 4 decades and now employs over 200 people. Merrill specializes in metal fabrication for the machine tool industry. The owners, Gary and Mary Kay Yackel, utilized the SBA 504 Loan Program to purchase this building and equipment in Alma for only 10% down. With this new acquisition they will be able to consolidate 2 facilities in Saginaw, along with a warehouse, which will drastically reducing their cost of doing business. With the help of MCDC and Bank of America, this successful business will create 15 new jobs in the Alma area.
Metal-Line started over twenty years ago as a maintenance repair, out-source service for the local northern Michigan dry bulk industry. Over the years, it has expanded its facilities and markets and now services customers nationally with specialized repair of their equipment. Among these customers are the major spout manufacturers who out-source fabrication and machining to Metal-Line. Versatile Fabrication is a sister company located in Muskegon Heights. Brothers, Dan and Joe Balaskovitz purchased Metal-Line and Versatile from their parents. Versatile purchased the building they were leasing in Muskegon Heights, while Metal-Line constructed a new building in Manistee (this project). Metal-Line will save approximately $5,745 a year by constructing a new building, rather than leasing. In addition, the property purchased by Metal-Line is located in a Renaissance zone, so the property taxes and the single business tax are eliminated until 2012.
Metro Parent Publishing is the publisher of several prominent publications in the metro Detroit area. Over 250,000 readers annually receive Metro Parent, Metro Parent Ann Arbor, The Party Book, Best of Times, Metro Baby, Metro Parent Educators Edition and Going Places. Alyssa Martina and Alexis Bourkoulas had been leasing space since the company started. By using the SBA 504 Loan Program, they were able to take advantage of a lower down payment and extended terms to purchase their own building on Woodward Avenue in Ferndale. This project involved the purchase and renovation of a former pet store to the class A office space it is today.
This car wash purchase represents the first of many planned by the Neumann’s. This wash has both a tunnel and self-serve operation and is located on a high-traffic artery (Van Dyke/M-53) near 26 mile. The borrower has years of experience with wash equipment and was able to purchase the facility with the lower equity and a long-term fixed interest rate offered by the SBA 504 Loan Program and the MCDC.
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!
Leon and Marleen Van Loon and their four children moved to the U.S. in 2001 after 25 years of farming in Belgium. They began by leasing a small dairy farm to become acclimated to U.S. dairy farming. In 2002, the Van Loon's bought their own dairy farm which started with 500 cows. The name, Mibelloon, comes from combining the Mi in Michigan, the bel in Belgium, and Loon from Leon's last name. This project involved the construction of two new barns, a 60-stall state-of-the-art rotary milking parlor and equipment, as well as manure/sand sifting equipment. With the additon of the barns and milking parlor, the farm is able to milk more cows in less time (360 cows milked per hour). This expansion allowed Mibelloon to increase from 1,300 cows to 3,500 cows. Leon requested to use the SBA 504 Loan Program because the program only required a 15% equity injection, plus he wanted the below-market interest rates for 20 years.