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|R&R Auto Service/McKinney Transmission opens new shop Nov. 18
with SBA 504 financing from Old National Bank and Indiana Statewide CDC
A longtime auto service mainstay is moving into a new building just down Lafayette Road from its old location.
R&R Auto and Fleet Services and McKinney Transmission are moving this week and will open November 18 at 4451 Lafayette Boulevard, just north of Lafayette Square Shopping Center.
Owner Roger Chung and his eight employees will continue to perform complete maintenance on autos and light trucks in a new, modern, 12,000 square-foot facility. Chung says, "We'll have 12 bays doing all kinds of commercial and retail fleet maintenance. We're a full maintenance shop, everything except body work."
Old National Bank and the Indiana Statewide Certified Development Corporation helped Chung finance the new building and equipment with a loan from the U.S. Small Business Administration 504 loan program.
Indiana Statewide CDC works with local lenders to provide SBA 504 loans to owners of small businesses. SBA 504 loans can offer small business owners long-term, fixed rate financing similar to commercial loan terms available for large companies.
Chung has been an auto mechanic for more than 30 years. He started R&R Auto and Fleet Services in 2004. In 2009, he purchased a much older company, McKinney Transmission. McKinney originated downtown in 1950 and moved to Lafayette Road in 1969.
"The SBA 504 program is working out well for me," says Chung. "My interest rate for repayment is lower than I could have gotten from a conventional loan."
Kathy Cooper of Old National Bank says, "It has always been great working with the Indiana Statewide CDC people. They are very helpful and make the SBA 504 process go very smoothly. It has been great getting to know Mr. Chung and his business and watching it go to the next level. I believe it has been a great fit for Old National."
The Indiana Statewide CDC funded more than $17 million to 38 Indiana small businesses in fiscal year 2013 through the SBA 504 program. The amount swells to $42 million invested when the participating banks' shares and borrower down payments are included. The loans are expected to create or save more than 275 jobs in Indiana.
The Indiana Statewide CDC has invested over $459 million in more than 1,050 Indiana companies since 1983, creating or saving 26,500 jobs. Indiana Statewide CDC is observing its 30th anniversary this year.
Since Congress created the 504 program, SBA 504 loans have funded over $62 billion to more than 130,000 small businesses. In turn, those small firms have created or retained over 2.1 million jobs for the U.S. economy.
Indiana Statewide CDC Executive Director Jean Wojtowicz says, "SBA 504 loans are effective because borrowing companies can put as little as 10 percent down and receive a low, fixed interest rate for as long as 20 years. The SBA guarantees bonds sold privately to finance a portion of the loan. With the guarantee, we can offer loan rates more favorable than conventional financing."