Michigan Certified Development Corporation Reaches Loan Milestone; Miller Mold Company 1,000th Loan Recipient

Michigan Certified Development Corporation Reaches Loan Milestone; Miller Mold Company 1,000th Loan Recipient

EAST LANSING, MI (September 10, 2012) — Michigan Certified Development Corporation, (MCDC) has announced that they reached a loan milestone receiving 1,000 loan approvals in the history of the organization.  “Miller Mold Company of Saginaw, Mich., was our one thousandth loan approval, which was used for the purchase of equipment,” Sherzer said. “To date we have 1,000 SBA loan approvals with a total project cost of just over $1.4 billion and total debentures exceeding $500 million.”  MCDC started in 1986.

Miller Mold Co. has been a leader in the thermoform and plastic industry since 1951. Although Miller Molds expertise has commonly been in thermoforming tools, match metal punches and die sets, they have also expanded the business into the design and manufacturing of Injection, Blow and Rotary mold tooling to assist their customer’s needs.

“Chase is proud to be part of the 1,000th loan made through the MCDC, an important partner for banks and businesses across Michigan,” said Joseph Pichla, Vice President for Chase Business Banking.  “The SBA 504 loan program is a very effective way for businesses to grow, with favorable rates, terms and down payments that are an attractive alternative to conventional financing.”

With Chase as its lender, Miller Mold used the MCDC 504 program for a large piece of equipment along with improvements to accommodate the new machinery.  The loan covered the purchase and installation of the equipment, including computer software and an overhead crane for moving heavy materials on and off the work table. The SBA 504 program offers longer loan amortization, helping businesses such as Miller Mold with better cash flow and more manageable payments.

“MCDC’s 504 program allowed Chase to offer Miller Mold a longer amortization on the equipment. A bank can usually offer to amortize equipment for five to seven years. The SBA 504 allows clients to amortize their equipment for 10 years. Since it only requires 10 percent down, it helps Miller Mold to maintain a higher cash balance,”

Miller Mold Company Addresses Challenges to Manufacturing

“The manufacturing business in Michigan is rapidly increasing today – especially because of the demand for ‘green appliances’,” explained Hank Baxter, Chief Operating Officer for Miller Mold Company. “This started trending in the first quarter of last year; however it takes a good year to get everything in place to meet these new demands.”

Miller Mold Company has been able to hire 21 new employees in the last two years. They now have 40 employees working on customized molding – which includes design, engineering, programming, and CNC processing.

“We take tremendous pride in our work as well as our commitment to our customers,” Baxter said. “We have evolved from hand-cut layouts to modern computer numerical control (CNC) cut molds with the agility to embrace new technology and ideas to better serve our customers. By purchasing new equipment, we are striving to give our customers the best products available to meet their needs.”

Baxter’s dream is to start a technical training program in Michigan with a focus on manufacturing. His vision is to partner with other entities in Michigan to test and train candidates for all types of jobs in the manufacturing arena. “If we could test for math, science and other capabilities – we could determine who might excel at design, CNC, programming, drilling and even the basic janitorial services needed to make a company run successfully,” he explained.

“Hank is trying to put a coalition of businesses together to help with training our unemployed and underemployed in Michigan,  It’s an ambitious goal and certainly needed.”

According to Baxter, it’s very hard to find qualified labor today. The “trades” classes that used to be offered in high schools and other career centers are no longer offered. It takes a special skill to be a tradesman. “With so many people out of work because of the auto industry shrinking and changing – we are in the dark in terms of education,” he added.

Baxter said Miller Mold Company is using recruiting firms to find qualified people – but even then he spends a lot on training because all of the work at his company is customized molds.

For this fiscal year MCDC has completed 126 approvals with more coming. Michigan is a consistent SBA leader with MCDC breaking several records for the number of SBA 504 loan approvals.  MCDC has earned national recognition for their achievements. 

MCDC led Michigan in SBA 504 loan approvals since 2005, and was named the Michigan SBA Lender of the Year in 2007.  “At MCDC we have enjoyed consistent growth and a well-managed portfolio.”

About the Michigan Certified Development Corporation (MCDC)

With five offices throughout Michigan, MCDC’s experienced staff will work through every step of an SBA Loan. MCDC is a non-profit corporation certified by the U.S. Small Business Administration to provide SBA 504 loan financing and SBA 7(a) loan packaging. With projects in nearly 90 percent of Michigan’s counties, MCDC is a leading provider of SBA financing in Michigan. For more information please feel free to call 517.886.6612 or visit www.michigancdc.org.