- 5.00%September 2014504 20-Year Term
|Business Names / Operating Companies:||LaRock Enterprises, Inc. dba Eagle Machine|
|Borrower/Eligible Passive Company:||Ahtanum Ridge Properties, LLP|
|Project Location:||1401 West Pine St. Union Gap, WA|
|Financing Purpose:||Purchase of land and ground-up construction of a general purpose commercial building|
|Financing Structure:||47% Lender/37% Evergreen/16% Borrower|
|Permanent Lending Partner:||Wheatland Bank|
|Economic Development Goals Met:||Manufacturing, Rural Development, Labor Surplus Area|
|Jobs Created and Retained:||4|
"We were maxed out. We could not add another person. We needed more space and our old location was not a good place to expand," recalled Doug LaRock.
Eagle Machine manufactures metal machine parts to custom specifications and repair work for other manufacturers and retailers. It is owned by Doug LaRock, his wife Linda LaRock and Robert Hendry and was started in Doug LaRock's garage as a small one-man shop in 1985.
Eagle Machine built its first 5,000 SF shop in 1987 on land located on Doug and Linda's personal property and by 1988 they had expanded to use the entire building. In 2007, they began leasing an adjacent building, which provided an additional 2,000 SF.
The business continued to grow and was in need of a larger shop in a more suitable area. LaRock said, "Fortunately we identified land that came with light industrial zoning and we had cash on hand. We learned about the 504 program from our banker, Wes Schut at Wheatland Bank. We looked at several loan products, but liked the 504 program's low down payment and low interest rate."
Evergreen Senior Loan Officer Tom DiDomenico said, "This project is a perfect example of what the 504 program was designed to do - help an existing, family-owned business move into a larger more comfortable space, increase revenue and hire more people."
The 504 project financed the ground-up construction of a general purpose concrete tilt-up commercial building. The total square footage of the new building is 13,000 and replaces the two leased buildings. They also upgraded the ventilation and environmental systems to filter out particulates which are a byproduct of metal machining. Costs include land, building construction and sales tax, construction contingency and soft costs.
"Wheatland Bank was great and the people at Evergreen we good to work with. Our business is fast paced and sometimes the loan process took longer that we expected, but in the end the low down payment and rate were important benefits for us."
"We have already hired one new employee since the move. We are set for future business growth and slow steady job creation."
Wes Schut, VP/Loan Officer, Wheatland Bank, "Since their inception in 1987, LaRock Enterprises dba Eagle Machinery has been an American enterprise showcase. This business prides itself on its quality workmanship. I am not sure if they have a motto, but if they did, two mottos they could rightfully use would be "build it like it was our own" and "do it right the first time"."
"Another quality trait of this company has been their aversion to debt. However, eventually they became a victim of their success. Their reputation for high quality work and on-time delivery forced them out of their smaller leased facility and building their own building was the right choice."
"The SBA-504 program was the right fit because of their need to preserve working capital allowing them to remain nimble in this recession. Evergreen Business Capital was great to work with. I especially want to acknowledge the tremendous help from Tom DiDomenico and Jamie Sherbondy."