Brainerd Glass Company Awarded MBFC’s VetLoan Advantage Rebate!
Minnesota Business Finance Corporation (MBFC) is pleased to present a VetLoan Advantage Rebate of $3,000 to Charles Deutsch, President, of Brainerd Glass Company. MBFC is the only Certified Development Company (CDC) in Minnesota to offer a rebate to business owners that are active or retired Military Members. The VetLoan Advantage is part of a strategic initiative of the National Association of Development Companies (NADCO) of which MBFC is a member.
Brainerd Glass Company has been in operation for over 60 years. Deutsch has worked for the company since 2003 and in 2009 he and his wife decided to purchase the business. Charles qualifies for the VetLoan rebate for his Military Service in the U.S. Air Force. Some of Brainerd Glass Co’s products include insulated glass, shower enclosures, decorative glass products, glass storefront and entrances, auto door operations, custom mirrors, retail screen and storm repairs, as well as aluminum deck railings, to list a few!
The SBA 504 loan was used to purchase a building and expand their existing operation. The new location provides a retail storefront and office space including showroom areas for their products. With their growth they were in need of additional office space and warehouse room. Deerwood Bank of Baxter also successfully partnered with the project.
MBFC thanks Chuck for his Military Service and for more information about Brainerd Glass Company click here. For additional information or to inquire about MBFC’s VetLoan Advantage Rebate program please contact your MBFC Business Development Officer today!
SBA has made favorable changes to the SBA 504 Refinance Program!
Eligibility – New Business Definition
The borrower must have been in operation for 2 years as of the application date evidenced by financial statements submitted with the application. Any ownership changes during this 2 year period, SBA was ruling as a new business and automatically ineligible.
Rule Change: If there has been a change of ownership in the 2 years prior to application – SBA is stating it’s a new business and ineligible only if it’s a change in ownership that would have resulted in new, unproven ownership/management.
Cash Out / Business Operating Expenses Loan-to-Value 75% to 85%
For any project that includes cash out / financing of “Business Operating Expenses”, a maximum 75% loan to value of the refinancing project applied.
Rule Change: SBA has increased the maximum loan-to-value of the refinancing project to 85% for a project including cash out / financing of “Business Operating Expenses”.
The cash out portion of the refinance project stays the same – cannot exceed 25% of the value of the eligible fixed asset securing the Qualified Debt.
SBA was requiring appraisals to be dated within 6 months of application.
Rule Change: SBA now requires appraisals must be dated no later than 1 year prior the application approval.
We’ve seen the 504 Refi Program assist in refinancing contract for deeds and also utilizing the cash out capability to free up working capital to be used for many different things.
The 504 Refi Program can also help lenders with lending limit concerns and concentrations in particular industries.
These are favorable rule changes just in time for year-end renewals. Keep in mind the 504 Refi Program can assist in attracting new clients with below market, long term, fixed rates!
If you’d like to learn further details or schedule an individualized on-site training, give your MBFC Loan Officer a call.
MBFC Presents Grant to Hubbard County Regional Economic Development Commission
Minnesota Business Finance Corporation (MBFC) recently awarded a grant of $1,500 to Hubbard County Regional Economic Development Commission (HCREDC) in Park Rapids, MN. Chuck Nordquist, Vice President of Business Development presented the check to David Collins, Executive Director of HCREDC.
MBFC is proud to partner with Collins to support development of a growing and vibrant economy in Hubbard County. Part of their mission serves to address needs of existing businesses as well as provide assistance to new and expanding businesses.
Funds from the grant are going to establish an “Entrepreneur For a Day” program for 5th grade students in Park Rapids, Nevis, and LaPorte school districts. They plan to launch the program within the Fall 2016-Spring 2017 school year. For further information about HCREDC and contact information please visit their website by clicking the link here: HubbardCountyREDC
Please contact Tom Saehr, President & CEO of MBFC, for more information about the MBFC Grant Program and application details for your organization
MBFC Announces Lender of the Year & Member of the Year!
Minnesota Business Finance Corporation (MBFC) held their FY2016 Annual Membership Meeting on Oct. 20th, 2016 at the Courtyard Marriott in St. Cloud, MN. The annual membership meeting was well attended with over 65 in attendance. MBFC awarded the Lender of the Year and Member of the Year for FY2016 at this event. MBFC thanks our Board of Directors, MBFC Membership, Lenders, Economic Developers and Government Officials for a very successful year. MBFC was chosen as the MN SBA Top CDC of the Year for both highest dollar amount of loans and most number of loans for the second year in a row! We greatly appreciate your business as a crucial part of our continued growth and success!
MBFC is pleased to announce the FY2016 Lender of the Year Award is given to BankVista. The third party lender of the year award is given to the lender with the highest dollar amount of 504 debentures approved by MBFC and the U.S. Small Business Administration (SBA) within the fiscal year. Congratulations to BankVista!
Gordon Winzenburg has been awarded the FY2016 Member of the Year. Winzenburg is the President of CMG Finance located in Brainerd, MN. Winzenburg referred the most SBA 504 loans to MBFC during FY2016. He has been a longstanding MBFC Member and is currently a MBFC Board Member. Congratulations Gordy!