Have our past two articles on Revolving Loan Funds piqued your interest? Perhaps you are now asking yourself, “How can my business use a RLF loan?” A key aspect of this funding option is its flexibility. A loan from a Revolving Loan Fund (RLF) can be used by businesses from a variety of industries to finance projects ranging from purchasing or building a new facility to setting up a training program and everything in between.
EDWC has helped secure financing for clients in many different industries, big and small. To get you thinking of how your business could use financing, here are six ways your business can use an RLF loan:
#1 Purchase or Build a New Facility
Business is booming, and your building is busting at the seams. Consider purchasing a larger building or building a facility that will be just right for your company’s needs.
The right opportunity to make a move doesn’t always come at the right time in your budget cycle and this is where a RLF loan can help create equity. EDWC worked with Houseware Distributors, Inc. (HDI) to finance the construction of a brand-new facility. By doing this, HDI can invest in their growth plans, which includes warehouse technologies around racking, Wi-Fi, barcode scanning and associated integrated software for their new ERP system.
#2 Remodel, Reconfigure or Expand an Existing Facility
What if your business needs more space to grow and meet the demands of your customers, but moving is not an option? Adding on to your existing building may be the answer for you.
If you have unused acreage at your current location, the best option may be to put an addition on your building. With the extra space you can add machinery or reconfigure the workflow to create efficiency in your operations. MBW in Slinger did just that. They reached capacity in 2021 due to space and capacity constraints within their current facility. In the first of a two-phase approach, MBW is building a 12,000 SF R&D, engineering and global training center. This will allow MBW to reconfigure manufacturing in the freed-up space in the existing facility. Phase 2 plant reconfiguration will include various improvements to the existing facility, such as dock rebuilding along with purchasing additional manufacturing equipment.
#3 Purchase an Existing Business to Retain Local Ownership
A business can change hands for many reasons. Sometimes it’s a family-owned business transitioning ownership to the next generation. Other times, an owner is ready to sell and you see a new opportunity! EDWC can assist in making this transition and did so by facilitating the purchase of Weld-Fab in Slinger. Retirement was on the horizon for Art & Deb Hahn. Kelly Wendorff and Kale Wenzel were looking to purchase an existing business and expand on their many years of manufacturing experience. Knowing of EDWC, they made contact and pitched their plan. Keeping Weld-Fab local and helping transition from one local family to two other local families became EDWC’s mission. Negotiations and creative deal structuring got this deal to the finish line. Keeping companies local and keeping jobs local is what drives EDWC to devise creative solutions.
#4 Secure New or Upgrade Existing Equipment
Do you have equipment in need of repairs? Maybe your equipment is outdated and needs an upgrade? Would another automated piece of equipment make getting orders out the door quicker? Any one of these may be the reason behind the need to invest in additional or upgraded equipment. A RLF loan can help with equipment purchases by providing long-term, fixed-rate financing. EDWC has the expertise to work with you, your bank and the vendor you are looking to purchase from. Sometimes filling the gap to add that extra piece of equipment is all it takes to get your project off the ground. EDWC can be your partner in financing that equipment.
#5 Train and Develop Employees for Future Growth and Expansion
If you are installing updated machinery, implementing more automated processes or adding robotics to your shop floor, is your staff ready for the changes? Upskilling your current employees can be an expensive prospect. Whether you are sending staff offsite to train or bringing in dedicated trainers for a week, there will be a cost to your business.
A RLF loan can help by providing working capital for those direct expenses, but also to cover the cost of lost production due to installation or shut down. A RLF loan can also be used to create an internship or apprenticeship program to develop potential new employees of the future.
#6 Brownfield Redevelopment
You have found the perfect place for your new building, but . . . there’s WHAT?? Don’t let possible site contamination stop you from considering a location. Brownfield sites can come with one or many conditions that could make you pause when considering them for a project. Washington County is a leader in converting brownfield sites into usable land. Reusing an existing commercial location works to preserve land for agriculture, Washington County’s second most important economic activity.
A loan from the Washington County RLF can be used to assess, clean up and monitor a brownfield site, turning it into a brand-new location for your business.
Do any one of these six reasons for an RLF loan spark some ideas for your business? The best way to know whether your growth project qualifies for financing from the Washington County RLF is to connect with one of our experts. Let’s get started.