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.
McCormick Gas utilized the SBA 504 Loan Program in 2007 to meet financing needs for their first gas station/convenience store in North Muskegon. McCormick Gas found the first location quite successful and thus chose to expand to a second location, utilizing a second SBA 504 loan for the project. The location for this new venture is at the corner of Whitehall Road and White Lake Drive in Fruitland Township. The gas station has five islands capable of serving ten passenger vehicles and two commercial vehicles; as well as a fully stocked convenience store and a commercial scale for use by freight haulers. The McCormick team elected to use the SBA 504 Loan Program a second time to take advantage of below market rates and extended terms. Two valuable benefits enjoyed with the SBA 504 Loan Program.
McCormick Gas Station is a new gas station/convenience store in rural Muskegon, Michigan. Located off a main freeway exit leading to several local attractions, the new building occupies 5000 square feet, consisting of 4000 square feet for the convenience store with the remaining 1000 square feet leased to a sandwich shop. With the help of the MCDC and Comerica, the McCormick family was able to construct this beautiful new station in Twin Lake, Michigan. Some of the benefits they were able to enjoy were below-market interest rates and extended terms on their financing.
Darren and his father William started McDunnough, Inc in 2002. This 12-year old Michigan Company recycles plastics from a variety of industries, including automotive, food packaging, material handling, recreation and outdoor products. Darren had been searching for a larger facility for several years when the perfect opportunity arrived. This 75,000 sq. ft. building in Fenton allows for McDunnough, Inc to expand, providing plenty of office space, more loading docks and equipment. This will also increase inventory and processing. By using the MCDC SBA 504 Loan Program and help from Peoples State Bank, McDunnough, Inc. was able to purchase this new building to accommodate the expanding market.
Dallas and Larry have been successful partners of MDL for many years and have several business ventures together. Included in these ventures are seven car washes in southern Michigan. The two turned to the SBA 504 Loan Program to rebuild their Oasis Car Wash from the ground up in Jackson, MI. The previous building was over 25 years old. This beautiful new facility hosts a car wash and oil change center. With the assistance of the SBA 504 Loan Program, they were able to finance the construction with only 15% down and can take advantage of the program's low, fixed rate and extended terms.
Formed by Jason and Debra Clement, Mega Power Sports LLC opened its doors to the community of Gaylord in 2009. Mega Power Sports sells and services trucks, motorcycles, boats, snowmobiles, lawn mowers, and more. Obviously, Mega Power Sports was a necessity for the Gaylord area due to the explosive growth they’ve experienced. As Jason and Debra had been leasing their space, they immediately knew they weren’t going to have enough room, so they purchased the lots next door with plans to build a new facility.
This SBA 504 project was for the construction of a Mega Power Sports dealership as well as refinancing their previous real estate loan at better terms. As Jason and Debra continue to operate their business, they are now becoming established as one of the premier dealerships in northern Michigan.
For more information on Mega Power Sports LLC, please visit www.megapowersports.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!
To view more profiles, click here