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|Two Indiana manufacturers produce more with SBA 504 loans
New machinery bought with SBA 504 financing is brightening the futures of two Indiana manufacturers located at opposite ends of the state.
Hoosier Pattern in Fort Wayne and Fisher Tool in Evansville had the same problem: customer demands were overwhelming existing equipment.
Fort Wayne's Hoosier Pattern bought an ExOne 3D sand printer, using SBA 504 financing for the 3D printer, the building housing it and an overhead crane. Indiana Statewide Certified Development Corporation coordinated the package with First Merchants Bank.
"We're very excited," says Hoosier Pattern owner and president Keith Gerber. "We can now rapidly prototype very complex parts and deliver in a matter of days rather than weeks."
Down along the Ohio River in Evansville, Fisher Tool was turning away work from regular customers until the company purchased and installed an Okuma 1000VH 5-Axis machining center. Fisher Tool's SBA 504 financing was coordinated by Indiana Statewide CDC and German American Bank.
Owner Tim Fisher says, "Our new machining center reduces the number of man hours required for one major client and frees up a second machine for work we were refusing."
Now, Fisher's ten employees -- and the 31 workers at Hoosier Pattern -- can keep up with customer orders, and add more. This satisfies their customers -- who are also manufacturers -- and their customers who build parts for everything from tractors to appliances and the equipment to move them.
Both bank loan officers involved worked hard on behalf of these two experienced, profitable companies.
Lindsay Botsch of German American says, "The Fisher Tool project really makes a difference in our local economy, and is perfect for the SBA 504 loan program."
Here's what Dean Fuelling of First Merchants says: "The loan structure is a good opportunity to mitigate some of the risk for Hoosier Pattern and our bank because the SBA 504 allows Keith to amortize the loan over a longer period of time, increasing his likelihood of success."
Hoosier Pattern's Gerber adds, "The loan process was well coordinated by the combined team from the Indiana Statewide CDC, First Merchants Bank and the SBA. I felt that the team was very supportive and encouraging of our vision."
Fisher says, "Without this SBA 504 loan, this would not of been possible for us to do. It is the largest investment we have made in our future and I believe it is totally necessary in order to have a future."