Recently Funded Deal: Paper Products Manufacturer
THE 504 COMPANY HELPS BUSINESS PURCHASE ITS LEASED FACILITY AND REDUCE OCCUPANCY COSTS
A minority-owned business located in Clifton, NJ was experiencing historic sales growth and sought to purchase its leased facility to reduce occupancy costs. New equipment and renovations were also needed to improve the way the business managed new contracts. Historic cash flow issues caused by prior owners made this loan challenging to underwrite. A partner bank referred the owner to The 504 Company, and a loan officer recognized the fit for an SBA 504 loan.
A 504 loan for $2,205,000 paired with a conventional loan for $3,150,000 allowed the business to purchase its leased facility as well as perform the necessary renovations. Additionally, new equipment was purchased, which increased the business’s capacity.
In addition to providing the funding needed for this project, the SBA loan made it possible for the business to continue its growth and increase productivity. Twenty-five jobs were created and 55 jobs were retained, while revenue substantially increased.