The Grow America Fund didn’t just offer us a loan; they had the flexibility to structure the loan in a way that worked for us,” said Mike Melton, owner of AeroTron.
New York , NY (PRWEB) September 10, 2012
The National Development Council (NDC) http://www.NationalDevelopmentCouncil.org, the country’s oldest national non-profit community development organization, today announced that its small business loan program, Grow America Fund (GAF), has successfully structured a flexible loan plan for Competitive Enterprises, Inc. (dba AeroTron Mfg. Co.) that will infuse the company with much needed capital to maintain and grow its presence in Morgan Hill, California.
NDC’s GAF is a small business development loan fund whose mission is to create jobs, stimulate investment, and build the strength of the entrepreneurial and small business base in qualified communities by lending to small businesses across the United States. After several staff from the City of Morgan Hill attended NDC training session ED101 – the first of four parts in the Economic Development Finance Professional Certification Program™ – the City agreed to invest $500,000 with NDC’s GAF which in turn created the Grow Morgan Hill Fund. The Grow Morgan Hill Fund works with the City and local banks to identify small businesses that are seeking loan options that traditional loan plans are unable to offer. The GAF will leverage this initial $500,000 investment into a $2 million loan program for Morgan Hill’s businesses.
AeroTron, which owns a precision machining facility in Morgan Hill, was the perfect candidate for the Fund. Prior to receiving the GAF loan, the company had been unable to make the property improvements necessary to commence operations at that location. “We’ve been trying to bring the Morgan Hill facility on line for over 18 months,” said Mike Melton, owner of AeroTron, “we just needed a capital injection that would allow us to open up our shop and are excited to be able to finally plan for a grand opening. The Grow America Fund didn’t just offer us a loan; they had the flexibility to structure the loan in a way that worked for us.”
“I love Morgan Hill,” said Mayor Steve Tate. “The leadership of this City has worked hard to retain, attract, and expand small businesses in the City. We are thrilled that our investment with NDC has already resulted in the retention and growth of AeroTron which will not only bring at least 35 jobs to Morgan Hill, but contribute in the short and long term to Morgan Hill’s overall industrial diversity economic health.”
NDC’s GAF lending program differs from conventional lending by offering small business owners in qualified communities, among other things, longer terms, larger loans, lower down payments, lower interest rates and flexible structures. “The loan to AeroTron is emblematic of the kind of need that Grow America Fund seeks to fulfill in communities around the country,” said John Palyo, President of GAF. “We recognize that there are times when even the most accommodating traditional lending institutions just cannot offer terms that make sense for a small business. It is our goal to serve those businesses, and the banks by helping small businesses build the credit and finances needed for more traditional loans.” The Grow Morgan Hill Fund is just one of more than 40 such funds in action across the country.
About National Development Council
Founded in 1969, the National Development Council is a national non-profit organization that has evolved into one of the most progressive and innovative community and economic development organizations in the country. From a seminal role in the earliest days of the community development movement, NDC has grown into one of the most comprehensive suppliers of financing, development expertise, technical assistance and training for community revitalization efforts throughout the U.S. One of its signature programs is the Grow America Fund (GAF), which operates as a community development lender to support the creation of jobs and the expansion of eligible small businesses in underserved areas, particularly minority and women-owned businesses. The financing provided is partially guaranteed by the U.S. Small Business Administration under GAF’s Small Business Lending Company license, and GAF has Preferred Lender status nationwide. For more information, go to http://www.NationalDevelopmentCouncil.org or http://nationaldevelopmentcouncil.org/index.php/site/programs/category/small_business_lending/
About the Grow Morgan Hill Fund
The Grow Morgan Hill Fund is a loan fund that provides $2 million in financing to eligible Morgan Hill businesses, citywide. GAF financing is well-suited for small businesses by providing financing with:
- Longer Terms – repayment schedules up to 25 years that give the borrower smaller monthly loan payments
- Larger Loans – providing loan amounts ranging from $100,000 to $2 million
- Lower Down Payments – allowing higher loan-to-value ratios to preserve the business’s equity and maximize growth potential
- Lower Interest Rate – providing lower interest rates to enhance community development
- Better Structure – matching the term of the loan to the life of the assets being financed, ensuring debt service does not exceed available cash flow