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.
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.
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.