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.
For years, MKR Fabricators operated out of 2 different locations, which was inefficient and expensive. Owner, Rob Webb found a building to purchase that was perfect to consolidate his locations into one. Using the SBA 504 Loan Program through MCDC, Rob purchased and renovated the building with a 20-year loan with a 20-year amortization and a low fixed interest rate. MKR specializes in large scale plate steel fabrication projects. They offer plate rolling, plasma cutting, and bending. Their typical projects include rock crusher, dredges, cones, tanks, vessels, centrifuges, and ladders.
For more information on MKR Fabricators, please visit www.mkrfab.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!
Mod43 Inc. was founded in 2005 by Mr. John McKeehan and Mr. Quinton Ritz. The business provides configuration, testing, training, and customization of Oracle products. Mod43 performs implementation of Oracle Warehouse Management Systems (WMS) and Mobil Supply Chain Applications (MSCA). In addition to working with Oracle eBusiness Suite, Mod43 delivers full integration with barcode printing and handheld scanning for the warehouse environment. They assist their clients with training and configuration for popular printing packages, as well as for handheld scanning equipment.
Economic issues and the declining real estate market caught up with their developer, and Mod43 found themselves in an unfortunate situation and had to move out of their space. After moving out of the foreclosed unit to a leased location nearby the unit came back on the market after the foreclosure was complete at a very attractive price. The lower price allowed them to purchase two units in the business complex but lacking liquidity after all the disruption the SBA 504 Loan Program was just the answer that allowed the business to finance 90% of the purchase price but better yet, the 20-year fixed rate at historically low levels made the payments on the loan very affordable. This locks in a very stable capital base for the company while securing the location for the long term. The second unit provides expansion space which the company anticipates needing as they project adding 8 jobs over the next two years. For more information on Mod43 Inc., please visit www.mod43.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!
Michael Glenn Monroe is a renowned wildlife artist and children’s' book illustrator Mr. Monroe's first book was M is for Mitten, a Michigan Alphabet Book, illustrated and published in 1999 by Sleeping Bear Press. Since publication of this first book Mr. Monroe has illustrated numerous other books the most notable of which is A wish to be a Christmas Tree written by his wife Colleen. In addition, Mr. Monroe travels around the country visiting schools where he teaches children about wildlife and art. Examples of his work and a complete listing of the books he has illustrated can be found at his web site, www.michaelglennmonroe.com. He uses the Brighton commercial building as a retail outlet for his work and as a place to process on-line orders he receives for his books and works of art.
Mr. Monroe finds financing to be a necessary encumbrance on his time, and would much rather concentrate on his art. The SBA 504 loan was an opportunity to enter into a long term mortgage at a fantastic rate with a very affordable monthly payment making it unnecessary to think about refinancing for a very long time (and never for the SBA debenture portion of the loan). Mr. Monroe found the process less cumbersome than he expected and appreciated all the guidance provided by his banker and the MCDC. The SBA Loan Program has made it possible for Mr. Monroe to concentrate on his business and creative endeavors.
Mary Lamos has owned her daycare/preschool business since 1990. She held a lease agreement with the Southgate School District to lease space for her daycare/preschool. Due to the increasing student base in Southgate, the school district was downsizing her available space every year. This was a major implication as it was hurting her revenue, so Mary decided to construct a new building. With the help of the SBA 504 Loan Program, Mary may now grow her business with ample space and is no longer limited by the Southgate School District. She was able to construct her new school with only 10% down.
Montgomery, Wiethorn & Burke, P.C. is a Certified Public Accounting firm serving both individual and business clients. The firm was established in 1986 and the principals combined have more than 80 years experience as CPAs. Tradition bank financing was an option for this firm, however, the reduced equity requirement and long-term, fixed-rate financing attracted MWB to the SBA 504 Loan Program. MWB was very satisfied with the process and expects to refer their clients to the MCDC and the SBA 504.