THE SITUATION: REFINANCE CORPORATE DEBT & PROVIDE CAPITAL FOR EXPANSION
The owners of a nationwide construction company in the Pacific Northwest wanted to consolidate business debt and recapitalize the business for expansion plans to move into new markets. A true market leader in its industry, this client was only constrained by its amount of inventory and work crews it could hire. A collateral shortfall meant that few traditional lenders stepped up to help with this financing.
Financing Falls Apart
Another financial institution worked with our client for six months before backing out of the lending facility they previously structured for the client.
The lending package was secured on inventory, equipment, receivables, and intangible assets because there was no commercial real estate in this loan request.
Working Capital & Expansion Financing
A lack of working capital and liquidity was the client’s biggest challenge facing its growth plan to move into new markets and different niches.
THE SOLUTION: 7(a) SBA LOAN FROM FIRST BUSINESS BANK
First Business Bank, an SBA-designated Preferred Lending Partner, provided a 7(a) loan totaling $3,674,000, which included refinancing corporate debt and a large amount of liquidity for business growth.
First Business Bank’s closing team worked closely with the client and their CPA firm to achieve a rewarding end result and avoided a financing fall-through they’d experienced with another lender.
First Business Bank provided the financing facility originally proposed and closed in a timely manner.
Using the SBA 7(a) program, First Business Bank’s loan facility was the right loan for this client, allowing them to grow.
"Everyone happily pitched in to get this closed and provide the borrower with THE LOAN THEY NEEDED. IT WOULDN’T HAVE HAPPENED WITHOUT EVERYONE’S ASSISTANCE. The transaction is a true testament to working as a cohesive unity to get a goal accomplished.“
— David M. Schmidt, SBA Business Development Officer, First Business Bank