|
Today's Headlines |
|
| INTRODUCTION |
Question: Does a small business loan featuring a 20-year fixed rate at 6.7% (that’s 1.5% below prime) sound like a bargain?
Answer: Absolutely! But then that’s been the trademark of the SBA 504 Loan Program since its inception in 1981—a long-term, low fixed interest rate.
Here are the projections for the year ending September 30th:
| |
Number of 504 loans: |
10,600 |
| |
First mortgages: |
$8.7 billion |
| |
504 loans: |
$6.6 billion |
| |
Equity injections: |
$2.1 billion |
| |
|
|
| |
Total economic impact: |
$ 17.4 billion |
Chris Crawford, president & CEO of the National Association of Development Companies, notes “the continued and impressive growth of the 504 loan program demonstrates its value not only to the small business community but also to economic development in general. The 504 projects funded this year will create tens of thousands of new jobs.”
For more information on the 504 Loan Program, please visit the business finance section of the SLCEC web site or contact Larry Cresswell. |
|
|
| NOMAX FINDS PRESCRIPTION FOR EXPANSION THROUGH TAX-EXEMPT BONDS |
|
Nomax, Inc , through the assistance of the St. Louis County Economic County, has begun construction on a new headquarters and manufacturing facility in the City of Green Park.
The St. Louis County Industrial Development Authority issued $5,648,700 in bonds that were purchased by Midwest BankCentre. The current fixed rate on the tax-exempt bonds is 5.43%—nearly 350 basis points below prime.
Founded in 1982, Nomax is a privately held company that produces pharmaceutical and medical device products throughout the world. Originally located in the St. Louis County suburb of Webster Groves, the company owns two subsidiaries: Amcon Laboratories and Char-Lite Products, Inc.
“Steve Anderson and Monica Conners from our business development division helped Nomax find new space to meet their expanding needs,” stated Rick Palank, senior vice president of the SLCEC business finance division. “This project underscores the various ways the divisions within the St. Louis County Economic Council collaborate to insure growth and investment in the county,” he added.
Denny Coleman, SLCEC president and CEO stated, “Being able to offer companies competitive financing from in-house experts enhances our ability to successfully complete a deal.”
Nomax manufactures a variety of effervescent products, both pharmaceutical and non-pharmaceutical, as well as a number of specialty products such as pre-moistened towelettes, medical devices from a variety of materials, and diagnostic dye strips. |
|
|
| CDFA SELECTS ST. LOUIS FOR 2008 ANNUAL SUMMIT |
|
|
| FRIENDSHIP VILLAGE – WEST COUNTY EXPANDS WITH TAX EXEMPT BONDS |
|
Friendship Village of West County, located in Chesterfield, will soon begin a $6.1 million expansion that will include ten independent living units, a new multi-purpose room, bistro, swimming pool, and fitness area. The retirement center will use tax-exempt bonds through the St. Louis County Economic Council to finance the project.
“We found the tax-exempt bonds were a very economical way to finance this much- needed expansion to meet our growing needs,” stated Tim Cain, executive director of the Chesterfield facility.
Friendship Village has long been recognized for its many services, amenities, activities, excellent management, a service-oriented staff, and the security of on-site health care.
The new facilities will further enhance its excellent reputation.
“Not only were we able to gain a great rate for the new bonds, but we also refinanced some existing debt at a better rate and term,” Cain noted.
The $29 million in tax-exempt bonds will be issued by the St. Louis County Industrial Development Authority with Ziegler Capital Markets serving as the lead underwriter. |
|
|
| EUROPA MARKET COMPANY, INC. EXPANDS MARKETS AND FACILITIES |
|
Alem Boric started Europa Market Company, Inc. shortly after arriving in St. Louis from Bosnia in 1995. Europa Market began as a retail ethnic grocery importing foods from former Yugoslavia and other central European countries to service the Bosnian community.
Three years later, the importer of the bulk of their items, Grand Prix Trading of New York, offered Europa Market distribution rights for the St. Louis area. Over the course of that year, Europa Market successfully introduced their products into major chain groceries including Shop ’N Save, Schnucks, Dierbergs, as well as Walgreens.
With this success, Europa was able to serve other Midwestern markets in Iowa, Kentucky, Indiana, and Michigan. The company has added customers from states as far away as Washington and Oregon.
The St. Louis County Economic Council recently funded a $1.4 million project through a Small Business Administration 504 loan in participation with Regions Bank. The loan made it possible for EM Property Holdings, LLC to purchase a building at 8100 Water Street in South City for Europa Market Company, Inc. The building will serve as the main distribution point for central and western states.
SLCEC congratulates Europa Markets for their entrepreneurial spirit and encourages everyone to visit the Europa Markets at 8200 Water Street in St. Louis. |
|
|
| SLBDF HELPS BUDDEEZ SEAL FUNDING FOR ITS GROWTH |
|
After being laid off from McDonnell Douglas in 1991, Charles Hall invented the Bread Buddy®, an innovative but practical product that dispenses bread straight from its original bag. Charles formed Buddeez, Inc., to pursue the manufacture of the Bread Buddy®, and in 1994 a U.S. patent was issued on the invention.
Since then, Buddeez has developed a wide variety of dispensers to accommodate anything from breakfast cereals to bird seed. Buddeez products are found throughout the U.S. in Wal-Mart, Kmart, Target, Petsmart, Petco, and Lowe’s to name a few.
To sustain its growth, Buddeez and its sister company, American Plastics Group, Inc., recently began pursuing the purchase of a struggling plastic injection molding facility located in Union, MO.
The project is being funded by Heartland Bank, utilizing the SBA 504 Loan Program, but the need for even more capital led Buddeez to the Saint Louis Business Development Fund. SLBDF invested $250,000 to facilitate Buddeez’s expansion.
“By helping us to quickly meet our short-term inventory and equipment needs, the Small Business Development Fund allowed us to have the manufacturing facility up and running much sooner than if we had to spend time looking for additional outside investors.” – Charles Hall, President |
|
|
| ST. LOUIS COUNTY HEADLINES |
|
| |
|
|
|
