Case Study: Industrial Purchase with Build Out

Uses:

• Building Purchase - $4,000,000
• Renovations/Equipment - $2,750,000
• Interest Reserve - $50,000
• Soft Costs - $50,000

Total Project - $6,850,000


Structure:

Bank Conventional Structure:

• Bank - 75% - $5,137,500
• Equity - 25% - %1,712,500

Total Cash Outlay = $1,712,500



504 Structure:

• Bank - 50% - $3,425,000
• Growth Corp - 40% - $2,740,000
• Equity - 10% - $685,000

Total Cash Outlay = $685,000


Total Outlay Savings Using the 504 = $1,027,500

 Remember...we work in conjunction with local banks, not in competition with them!

An Innovative Business Concept Landed This Company on the Discovery Channel

When Discovery Channel calls to ask if they can come to your place of business and film an episode of "How It's Made", you can be certain you have an innovative business concept!  That's exactly what happened to Jim Czerwinski, owner of Magnum Steel Works, Inc.  The company drew national attention when they expanded their cutting-edge metal fabrication and machine business in Mt. Vernon, Illinois.

Magnum Steel Works, Inc. - Mt. Vernon, IL

Czerwinski opened the business when he saw renewed development of coal mining in the local area and wanted to fulfill the need for a mining equipment facility that could repair and rebuild equipment locally. 


People's National Bank and Growth Corp teamed up to help Magnum Steel Works, Inc. acquire new equipment using the 504 Loan Program.  The financing helped create jobs and is a great example of the investment and job creation potential of the 504 Loan Program.

Read more about how Growth Corp helped Magnum Steel Works, Inc. with the financing using a 504 Loan Program.

504 Loans for Veterans

504 Loans for Military Veterans

U.S. Military Veterans are eligible for commercial financing with the SBA 504 Loan Program.

The 504 is a commercial real estate loan primarily designed for business expansion.  Veterans can use the 504 to:

• Purchase real estate to house their business
• Expand or remodel an existing facility
• Purchase equipment with a useful life of at least ten years
• Refinance an existing, qualifying commercial loan as part of a NEW business expansion project
• Perform GREEN or Renewable Energy improvements

Why is the 504 a good choice?

• It offers long-term, fixed-rate financing fully amortized for the life of the loan with no future balloons, re-qualifying or refinancing required.
• It allows a 10% down payment/equity in most cases whereas conventional loans may require 25%-30% down
• Closing costs and soft costs can be included in the financing

For more information about the 504 Loan Program, to determine an estimated monthly payment, or for application forms, go to www.GrowthCorp.com.