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|Precision Racing Components buys manufacturing plant with SBA 504 loan from STAR Financial Bank & Indiana Statewide CDC
It's a year-around racing season at Precision Racing Components near the Indianapolis Motor Speedway.
Precision Racing designs and builds parts for professional racing teams. Its regular customers compete on Indy Car, NASCAR and drag circuits. Owner Chris Sumner and his 13-person staff of engineers and machinists can field a call at any time: "When our customers need a part, they need it right away, and we can do that," says Sumner.
Precision Racing Components is in a manufacturing plant on Gasoline Alley, south of the Indianapolis Motor Speedway. The company leased the building for several years, but recently completed buying it with a loan from the U.S. Small Business Administration 504 loan program provided by STAR Financial Bank and Indiana Statewide Certified Development Corporation.
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.
Sumner says, "The SBA 504 loan program is a good fit for our company. We were able to purchase our facility and reduce our monthly overhead expenses and provide stability so we can concentrate on growing the business."
Chad Baer of STAR Financial Bank says, "The low down payment is a great option for this client, coupled with the low, fixed interest rate."
The Indiana Statewide CDC has invested over $459 million in more than 1,120 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.
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." Precision Racing Components manufactures almost anything between the front of the racing engine and the tail pipe: from oil pumps to exhaust systems and electronic crash recorders.
Sumner is a racing veteran. His first job with an Indy Car team was in 1987. "I've held about every job there is," he says, listing team manager, crew chief, general manager and mechanic with several racing teams. His most recent position, before starting Precision Racing Components five years ago, was with Team Menard.