Cambridge Capital Management
Home
Contact Us
News
Calculate Your 504 Loan Payment Here!

Current 504 Loan Rates:
10 Year:
20 Year:
News
Andersonís ALA Trucking beginning construction on new HQ with SBA 504 loan from First Merchants Bank & Indiana Statewide CDC
Construction work is beginning for ALA Trucking's new headquarters on Anderson's south side at 5625 Dr. Martin Luther King Jr. Drive. ALA is converting a former lumber yard into a corporate headquarters, warehouse, truck service center and a truck parts store.

ALA owners Alan Adams and Paul Fogle obtained financing for the project from the U.S. Small Business Administration 504 loan program through First Merchants Bank and the Indiana Statewide Certified Development Corporation.

ALA is a 10-year-old freight company that ships commercial and consumer products for manufacturers and distributors nationwide. It has 33 employees and expects to add ten more after moving into the new facility next 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. Small companies gain favorable financing terms with SBA 504 loans similar to those available to large companies.

The SBA 504 loan helps ALA Trucking in two ways, says Fogle, ALA's chief financial officer. "From an economic standpoint the 504 program helps us with having a competitive interest rate and a lower upfront capital requirement than conventional financing. This allows us to fulfill our business space needs sooner and expand our business quicker than other financing methods," he says.

"From a risk perspective it allows a local bank partner to take on a little more risk than they may have been comfortable with without the program. The end result is a more competitive business creating more local employment opportunities and generating additional community, state and federal tax revenue," says Fogle.

Aaron Reger of First Merchants says, "First Merchants is excited to partner with ALA on this project. The SBA 504 loan will allow them to conserve cash as they continue to grow as well as provide a much better location for their planned business model diversification.

Background:
Indiana Statewide CDC Indiana Statewide Certified Development Corporation (www.cambridgecapitalmgmt.com) has funded one-half billion dollars ($500 million) to more than 1,200 Indiana small companies since 1983. Those loans total $1.25 billion in investments including the banks' portion of the loans and borrowers' down payment. The loans created or saved more than 15,000 jobs.

Jean Wojtowicz, executive director of the Indiana Statewide CDC, says, "SBA 504 loans work because borrowing companies can put as little as 10 percent down and can receive a low, fixed interest rate for as long as 20 years."

First Merchants Bank (www.firstmerchants.com) is part of First Merchants Corporation, the largest financial holding company based in Central Indiana. Since its organization in 1893, the Corporation has grown to include banks with more than 100 locations in Indiana, Ohio and Illinois.

ALA Trucking (www.qualityleasing.com), founded in 2007, provides freight services nationwide for manufacturers and distributors of commercial and consumer products. It is currently located at 3777 W. 300 E. Anderson, IN.



Please do not forward non-public information through this website.