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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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.
Mark McMachen has been working in the industry of new and used boat sales since 1981 and the name McMachen has been well known within the boating community since 1945. McMachen Boating Center is a full service operation matching customers to used and brokered boats throughout the Midwest and beyond. MBC also offers boat slips, winter storage, cleaning, detailing, fiberglass repair, winterizing, shrink wrapping, haul out services and more. Mark decided to purchase a strip of land located in Harrison Township along with a barge with a building on it. The barge is permanently moored in the Clinton River and the building was successfully renovated to serve as the sales office for MBC. With the assistance of the SBA 504 Loan Program, Mark was able to finance this purchase and take advantage of the program's low, fixed rate and extended terms.
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!
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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.