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Successful Midas Auto Service owner buys two Indianapolis locations with SBA 504 financing from State Bank of Lizton and Indiana Statewide CDC
Sandeep "Sonny" Shah has purchased the real estate holding two Midas Auto Service and Tires stores in Indianapolis. The Midas stores are located at 6184 N. Keystone Ave. on the north side and 851 N. Shadeland on the east side.

About 16 auto technicians are employed at the two stores, Shah says.

Shah financed the purchases with a small business loan from the U.S. Small Business Administration 504 program through the State Bank of Lizton and Indiana Statewide Certified Development Corporation.

Indiana Statewide CDC works with local Indiana lenders to issue SBA 504 loans to help owners of expanding or startup small businesses buy real estate, buildings and equipment. SBA 504 loans can give small business owners long-term, fixed rate financing similar to commercial loan terms available for large companies.

Shah graduated from the University of Michigan and was a mechanical engineer at GM for several years before buying his first Midas store in Bloomington. He purchased the two Indianapolis stores ó but not the underlying real estate owned by Midas ó less than two years ago and has been operating the stores ever since.

He says his Midas shops provide "one-stop brake repair and replacement, oil changes, tires and auto repair. We show customers their cars as we work on them and do most jobs in one day."

Shah says, "The SBA 504 loan required me to pay only 10 percent down. It reduces the cost factor of these purchases considerably. Total payout comes to just 60-percent of lease payment that Iíve been making."

Andy Pinegar of the State Bank of Lizton says, "The 504 loans are a great difference-maker to our clients who use it."

Background:

Indiana Statewide CDC has provided more than $530 million to 1,260 Indiana companies since 1983, creating or saving more than 26,595 jobs, and is the most prolific CDC in Indiana.

Executive Director Jean Wojtowicz says, "SBA 504 loans help small businesses grow because borrowing companies can put as little as 10 percent down and receive a low, fixed interest rate for as long as 25 years. The SBA guarantees bonds sold privately to finance a portion of the loan. With the guarantee, we can offer more favorable loan rates than generally available to small businesses."

State Bank of Lizton (www.statebankoflizton.com) originated in 1910 and now includes eleven locations providing full banking services throughout Boone and Hendricks Counties in Central Indiana.

Midas Auto Service & Tires (www.midas.com) performs repairs and maintenance for cars and trucks. Franchise owners operate their units of the nation-wide chain as local businesses. There are about 1,500 Midas locations in the US.


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