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Ramsey Excavating
A low down payment made expansion easy for one of the region’s fastest-growing excavators.
Certified Development Company:
Minnesota Business Finance Corporation
Location:
Minneapolis, Minn.
Clients:
Alan Ramsey, Thomas Loegering
Case Study:
$538,000 SBA 504 loan for $1.3 million land-acquisition, construction project
Third-Party Lenders:
Anchor Bank; Eden Prairie, Minn.
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A commercial excavation firm, Ramsey Excavating Co. Inc. (REC) works mostly on school and local government projects. REC mainly operates as a subcontractor to larger, metro-area contractors. It is the prime contractor for more than a fourth of its projects.
Alan Ramsey is 100 percent owner of his namesake company and has spent most of his 20-plus working years in the construction
industry. Eyeing robust excavating growth in the Twin Cities, Ramsey decided to strike out on his own in 1997. REC was born and quickly rose to be a respected name in excavating.
REC had a 2,500-square-foot building, which soon was unable to support the firm’s galloping growth. Through Minnesota Business Finance Corporation, Ramsey took out an SBA 504 loan to expand. He borrowed the capital through his real estate holding company, L and R Development, which is co-owned with his partner Thomas Loegering.
Thanks to the SBA 504 loan, REC is now a larger operation. Its new, 9,200-square-foot facility has an office with stained concrete flooring that can store several pieces of heavy equipment. The loan also enabled REC to start up an affiliate, Minneapolis Concrete Recyclers, LLC.
“The SBA 504 loan enabled us to put down only 10 percent of the total project capital on great long-term financing terms,” said Ramsey. “This was an ideal way for us to expand and manage our growth.” |
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