Powder Metal Technicians opens plant in Franklin with SBA 504 financing from BMO Harris Bank and Indiana Statewide CDC

Powder Metal Technicians has relocated to Franklin from Indianapolis, wrapping up an ambitious building project aimed at boosting capacity for precision machining of industrial components. Doug Hefley, owner and president of the 18-year-old company, financed the real estate purchase and construction of a new building with a loan from the U.S. Small Business Administration 504 loan program. BMO Harris Bank and Indiana Statewide Certified Development Corporation provided the loan. Powder Metal is now located at 1565 Graham Avenue north of Franklin. It moved from 8262 Brookville Road — and four other small buildings nearby — on Indianapolis' southeast side. Powder Metal's new building contains 14,000 square feet, more than twice that of the five buildings the company is leaving. With the new manufacturing facility's robotics, machining and fabrications equipment, Hefley says Powder Metal Technicians can customize parts and rebuild machinery in less time and with more precision. "We can also provide most of our services on a customer's site," Hefley says. Powder Metal employs twelve people with expertise in machining, robotics and machine set-up. Hefley says the company expects to hire three more this year. 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. Scott Norman of BMO Harris Bank says, "Our bank frequently uses the SBA 504 loan because it helps our small business clients get more out of their key expansion projects." Hefley says, "The SBA 504 loan let us build the building at a down payment we could afford." 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." BMO Harris Bank (www.bmo.com) operates 20 branch locations in Central Indiana as part of the bank's 600 locations in eight states. Powder Metal Technicians (www.pmtpress.com) was established in 2001 with 27 years of fabricating, tool room and machining experience and over 16 years' experience in powder metal press repair and rebuilds. PMT can help eliminate long periods of customer downtime with scheduled maintenance and by stocking a large inventory of Cincinnati Press compatible parts. PMT also delivers custom machining, robotics, and custom equipment. PMT engineering staff is currently using AutoCad Inventor for 3D modeling.