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.
- Collateral Shortfall
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.