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Great Lakes Plant Services buys building with SBA 504 financing from 1st Source Bank and Indiana Statewide CDC
Gary's Great Lakes Plant Services tackles the big jobs of keeping industrial buildings clean and in environmental compliance. The company and its 30 employees are now located in a new warehouse and headquarters at 1030 East 10th Place in Gary.

Great Lakes Plant Services purchased and refurbished a dormant building at that location with financing from the U.S. Small Business Administration 504 loan program through 1st Source Bank and the Indiana Statewide Certified Development Corporation.

President Jim McGlothen says the 10-year-old company cleans buildings, tanks and equipment in industrial facilities all over the U.S. McGlothen says, "We clean non-hazardous and hazardous waste. With our high level of expertise, many customers lean on us to address very hazardous situations -- such as cleaning up potassium cyanide or gasoline -- that would cause them to curtail their operations unless the material was removed."

McGlothen adds, "All of our personnel receive the training for hazardous materials outlined in OSHA requirements and this is ongoing each year. We own and utilize the very large high velocity vacuum trucks and pumps."

Indiana Statewide CDC works with local lenders to provide SBA 504 loans to owners of small businesses. SBA 504 loans can give small business owners long-term, fixed rate financing similar to commercial loan terms available for large companies.

Great Lakes' McGlothen says, "We used the finds from the SBA 504 loan to purchase our new facility and to upgrade it for our use. We have always leased before, but an opportunity arose that allowed us to purchase the facility at a very low price and it is quite large."

Erik Back of 1st Source Bank says, "The project met a need for Great Lakes to expand and own its own space. The Indiana Statewide CDC is great to work with, and the loan helps solidify highly skilled jobs in the region."

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."

Background

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 observed its 30th anniversary last year and is the most prolific CDC in Indiana.

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.

U.S. manufacturing has added employees in the last two years, though its 12 million workers are far short of the all-time high of nearly 20 million in 1979. Production efficiencies help manufacturers accomplish more with fewer people: the U.S. leads the world in airplane manufacturing and is growing production in telecommunications, pharmaceuticals, heavy machinery and other high-end, skilled industries.

Together, the top 500 U.S. manufacturers would be the worlds' third largest economy if they were classified as a single country. Principal U.S. markets are in Canada, Mexico, China, Japan, the United Kingdom, Germany, Brazil, the Netherlands and Singapore.

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