Photo courtesy Plouse Precision Manufacturing
You could say that Plouse Precision Manufacturing is the “manufacturer’s manufacturer.”
Founded in 1957 and based outside Harrisburg, PA, the company provides custom parts and assemblies to OEMs worldwide. It’s also run by a team of four owners who are heavily involved in the day-to-day functions of the business. Their hands-on approach kicked into high gear after purchasing a building resulted in unexpected moving costs and delays in revenue.
“The goal of purchasing an existing building with short-term financing was to accommodate growth, but when the process started cutting into our ability to serve customers, we found we risked losing money. We knew we had to put long-term financing in place,” said Dale Seitz, President of Plouse Precision Manufacturing.
Seitz and his team turned to Seedcopa + SeedcoDE, as well as partner bank Members 1st Federal Credit Union, to assist with refinancing and restructuring their SBA 504 loan at a fixed interest rate below all-time lows of 4% and payable over 25 years.
The $1.9M loan provided additional cash out for the purchase of inventory and also helped stabilize the business when COVID-19 kicked in. Because the company had used an SBA 504 loan, they were eligible to enjoy covered payments for 6 months that they will never have to repay. This allowed Plouse to stay open and keep employees working.
“These covered payments have helped restore many businesses that have new and existing SBA loans,” said Sherwood Robbins, Managing Director of Seedcopa + SeedcoDE. “This is especially important at a time when our country is trying to grow and support the manufacturing industry within the U.S.”
To be eligible for the SBA 504 Refinancing Program, the debt to be refinanced must be at least two years old and the borrower must be current on all payments for at least the last twelve months.
“Purchasing a building and moving several thousand tons of manufacturing equipment is hard enough. Throw in COVID-19, and we had our challenges. Seedcopa + SeedcoDE eased the burden considerably by walking us through the loan application process and helping us get the operating capital we needed,” said Seitz.