Recently Funded Deal: Metal and Glass Contractor
- A Long Island-based metal and glass contracting company was in need of larger headquarters to support growth. The owners were seeking financing to purchase their first building and new equipment.
- A partner bank referred the project to The 504 Company. At the initial meeting, the borrower quickly understood the advantages offered by the 504 program in terms of low down payment and fixed-rate financing. However, the borrower did not project creating enough jobs to meet the 504 job creation requirement.
- The 504 Company loan officer identified an alternate public policy goal, enabling the business to qualify for 504 program financing. Because employees and clients who spend time at the headquarters would frequent local area shops and restaurants and bring new income to the community as verified by a letter from the local municipality, the project met the 504 program’s community development goal.
- The borrower was approved for a $1.5MM SBA 504 loan, which supported total project costs of over $3.7MM.
- The 504 loan program allowed the 15-year-old company to purchase a 26,000 square foot facility allowing space for current and future growth. The project also included the purchase of a large piece of equipment.
- The business relocation was approximately 10 miles from the company’s prior facility, allowing it to seamlessly continue to serve its existing customer base, retain all of its existing employees, and hire more staff.