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.
Since its incorporation in 1999, Ted Brown has been the operations manager at Midland Compounding & Consulting, Inc (MCC). Before MCC, Ted spent 27 years at Dow Chemical Company. MCC is a thermoplastic compounder that makes plastic compounds for bags, furniture, automotive parts and military applications as well as offering consulting services to help make other manufacturing companies more cost effective. As MCC has grown they’ve continued to lease several buildings in a small industrial park. When the opportunity arouse to purchase the buildings, Ted jumped at the chance. This came at a great time since MCC was yet again, ready to expand.
This project involves the purchase of property and several buildings for MCC. With the help of Russ Mathews at Comerica Bank and the MCDC SBA 504 Loan Program, Midland Compounding & Consulting benefited from 90% financing and a 20-year fixed rate loan. This project not only meets a Public Policy Goal of aiding rural area businesses development but it creates 4 new jobs to the Midland area.
For more information on Midland Compounding & Consulting, Inc., please visit www.midlandcompounding.com. 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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Seeley, Inc. dba Midway Engravers has been in business for over 25 years. The company was purchased by Richard and Elizabeth Seeley in 1985. Midway Engravers manufactures rotary cutting dies and accessories for the converting industry. Unlike many in the tool and die industry, the company has experienced dramatic growth in recent years due to management's emphasis on customer service, customized solutions, quick turn-around time and increased penetration of diversified markets including automotive, food products, medical, and packaging. Midway Engravers has also increased their production to larger dies that are more profitable and a big part of the general market trend. With an increase in business, Midway Engravers needed to expand its current facility by adding an additional 10,000 square feet of manufacturing space. With the SBA 504 Loan Program, they were able to obtain 20-year financing at a low interest rate.
For more information on how Michigan Certified Development Corporation can help fund your business, please visit www.michigancdc.org, Michigan’s #1 SBA Lending Partner!
Midway Engravers is a manufacturer of rotary cutting dies and accessories for the converting industry and has been in business for over 25 years. The company was purchased by Richard and Elizabeth Seeley in 1985. The new equipment purchase will improve their overall business by increasing quality, and allowing more customized solutions, and faster turn-around time. It will also increase packaging. Having this new machinery and equipment will also increase the overall efficiency of the manufacturing process.
With the help of Capitol National Bank, and the MCDC SBA 504 Loan Program, Midway Engravers benefited from 90% financing on their equipment purchase.
When Skip White bought Midwest II, Inc., he didn’t have any experience in the electrocoating business and he was enjoying his retirement from being a general contractor. But entrepreneurship is in his blood and no one could hold him back. He intuitively knows how to turn around a business. Since owning Midwest II, he’s grown the business and diversified the client base from 99% automotive to 75%. He’s accomplished this on top of picking up the majority of the business left by his former competitors.
Another smart move Skip’s made since owning the company is purchasing the building they were leasing. The opportunity arose and he jumped at it knowing that a monthly mortgage payment would be less than half of the rent he was currently paying. Skip worked alongside his lender at Waterford Bank and MCDC to utilize the SBA 504 Loan Program for the purchase. In doing so, he was able to purchase the building with only 10% down.
For more information on Midwest II, please visit www.midwestecoat.comand 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!
Incorporated in 1984, Mike Barger has built a reputation for being one of the area's experts in the Tree and Plant Health Care industry. The Company was operating out of two buildings that weren’t large enough to store trucks and equipment; therefore, time was spent each evening unloading equipment that needed to be stored safely indoors.
Mike located a building large enough to store all the equipment indoors and when he contacted his lender at Alliance Catholic Credit Union, he suggested the SBA 504 Loan Program to help with financing, giving Mike the ability to inject only 10% down and earn a long-term fixed rate. Moreover, Mike’s Tree Surgeons, Inc. was able to create 14 new jobs to go along with the current 40.
To find more information on Mike Tree Surgeons Inc, please visit www.e-bnlcafe.com/mikestree/mtree.htm. 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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