SBA 504 IN ACTION ON MAIN STREET: MANUFACTURING COMPANIES
Manufacturing is big business in the United States. In fact, there are almost 600,000 small manufacturers in the country today, making up nearly 100% of the industry category! The SBA has even created a dedicated Manufacturing Office to support the specific needs of these entities. On the SBA 504 financing front, that includes providing funding for commercial real estate purchases and expansions, inventory acquisition, and the purchase or upgrade of specialized equipment.
Over our nearly 45 years in business, Bay Area Development has had the privilege of helping thousands of small businesses secure solid SBA 504 funding to keep their companies growing. As you can see in the “Impact on Main Street” graphic in our annual report, we have deep roots working in virtually every industry sector and below are three of our recent project success stories in the manufacturing category:
A well-established company in the East Bay needed a larger facility to keep pace with its customer demand. With a focus on manufacturing ocean cargo containers and related hardware components, this client leverages state of the art technology to produce and distribute its products throughout North America, Europe, and Asia. Purchasing an industrial warehouse nearly tripled the company’s operating space and consolidated business functions under one roof with room for inevitable future growth.
A manufacturer in the high-tech space came to us with a dual request; they needed more space and wanted to own their building instead of continuing to lease. The South Bay-based company has been in business for over 30 years, manufacturing equipment and technology for clients in the growing aerospace, semiconductor, and medical device industries. Purchasing a new building increased their capacity by 25% and allowed them to create new jobs in their community. And, owning property instead of leasing is an investment in the business that will pay off for years to come.
Sometimes the products our clients manufacture are downright delicious! That was the case with a North Bay tortilla chip company that came to us with growing pains. The owners had opened a small Mexican market several years ago and, on a whim began producing and selling house-made kettle style tortilla chips. They were an instant hit, and distribution grew to more than 100 stores across the Bay Area – far exceeding their production capabilities. Acquiring a new building doubled their manufacturing and storage space and has allowed the owners to increase their tortilla chip production tenfold.
These three local entities join millions of others across the country to create what the SBA calls “Main Street” – the wide variety of shops and services that are fueled by entrepreneurs and make local communities both viable and vibrant. The SBA 504 program exists to ensure small businesses in virtually every industry on this Main Street have access to capital so they can purchase commercial real estate and equipment to help them grow and create new jobs. Bay Area Development’s team is proud to provide this optimal funding option as well as advice and expertise tailored to each of our client’s unique goals and needs. Contact us to learn how we can do the same for you!
