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.
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.
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.
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!