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.
Marysville Tire and Auto, Inc. (MTA) was formed by Jeff Semrow and Jim MacMillan in 1993. They currently operate one of the largest independent repair facilities in St. Clair County. After many years of leasing, Jeff and Jim wanted to purchase their own building with 10 service bays, similar in size to their leased building with a few modifications to the lay out. Their new location will be almost directly across the street from their leased location. Jeff and Jim were able to obtain low rate financing with only 10% down. This was made possible through the use of the SBA 504 Loan Program and by partnering with MCDC and Eastern Michigan Bank.
Founded by John Evasic Sr. in 1942, Master Automatic Machine Company, Inc. machines stainless steel components for the automobile steering and transmissions systems. Current owners Mark and Carol Evasic have plans to purchase and renovate a building in Livonia because they need more space for the growing business. This will be the second time Mark and Carol have used the SBA 504 Loan Program to reap the benefits of being able to lock into a 20 year loan and fixed low rate.
For more information on Master Automatic please visit www.masterautomatic.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!
Master Automatic Machine Company was founded by John Evasic Sr. in 1942. John D. Evasic, Jr. (Jack), son of the founder, joined the company after his military service in WW II and became its first president after formal incorporation in 1959. The company machines stainless steel components for automobile steering and transmissions systems from steel rod. 95% of their sales are automotive related primarily to mid-tier automotive suppliers with less than 10% of the product sold directly to the automotive companies themselves.
In the 1980s the third generation consisting of Mark, now president; William, now executive vice president; and Carol, now benefits coordinator joined the company as full time employees and owners. In 1999 the company relocated from Redford Township, MI to its current location in Plymouth, MI after constructing a 92,000 sf manufacturing facility. The company found itself with a maturing mortgage at a time when obtaining conventional financing was very difficult for automotive manufacturers. The SBA loan allowed the company to refinance its existing mortgage but also stabilized the capital structure of the company with long term fixed rate financing at a very low interest rate better enabling the company to position itself to compete for the long haul in a cyclical industry.
For more information on Master Automatic Machine Company, Inc., visit www.masterautomatic.com, and for additional information on how MCDC can help fund your business, visit www.michigancdc.org, Michigan’s #1 SBA Lending Partner!
Master Robotics, L.L.C. specializes in robotic refurbishment and repair for companies that utilize robotic and automated machines in the automotive, industrial and commercial manufacturing sectors. A few years ago, Master Robotics reached their capacity and so they leasing additional space, but it still wasn’t enough. Master Robotics resolved their problem by purchasing and renovating a building in Almont to provide additional capacity and even more space for future growth.
By utilizing the SBA 504 Loan Program, Master Robotics, L.L.C. was able to take advantage of the 10% down payment and long-term, fixed-rate financing for their building offered by the SBA.
For more information on Master Robotics, L.L.C. please visit www.masterrobotics.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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Since graduating from Nova Southeastern University College of Dental Medicine in 2004, Dr. Dorothy Griswold has worked in dentistry and since 2007 has owned Mattawan Dental, PLC. Dorothy had been leasing but needed more space due to her expanding practice. After contacting her lender, at Mercantile Bank, who recommended the SBA 504 Loan Program for construction financing, she built a new 4,027 sq ft dentist office in Kalamazoo.
Now that Dorothy’s building is complete, she has more examination rooms, and larger sterilization, x-ray and patient waiting areas. By taking advantage of the SBA 504 Loan Program, Dr. Griswold obtained low rate financing with only 10% down. This project not only meets a Public Policy Goal of assisting businesses owned and controlled by women, but it will create a few new jobs to the Mattawan area.
For more information on Mattawan Dental, PLC please visit www.mattawandental.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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