Seedcopa’s Marie Shires joined borrower Alli Fabrication for a site tour with the U.S. Small Business Administration and Pennsylvania Small Business Development Centers (SBDC) including (l to r) Michael Kane, Steve Dixel, Devin Tunis, Francesco Lama, Lynn Loaiza, Mark L. Madrid and Robert Goza.
When SBA Associate Administrator Mark Madrid recently traveled from DC to tour Alli Fabrication in Collingdale, Delaware County, he recalled the 40+ years his father owned a welding business. Administrator Madrid was thrilled to see how SBA 504 financing helped Alli Fabrication knock down familiar industry barriers. Utilizing low down payment, long-term fixed rate SBA 504 financing, Alli’s business was able to continue to grow after experiencing a sales surge while transforming the new Aramark building in Philly.
The Opportunity: Aramark Project
You’ve undoubtedly seen the modern steel and glass partitions that are used to break up open floor plans attractively in commercial and residential buildings. Alli Fabrication creates these stunning architectural features with non-welded assembly that allows custom and semi-custom products to be mass-produced efficiently and cost effectively. So when the Aramark building was being constructed in Philadelphia, Alli Fabrication was hired. Before the project was even completed, two other offices in the same building requested partitions in their offices. One of those projects already had a competitor’s product installed, and they chose to replace it with Alli’s after seeing the quality disparity. Sales began to soar.
The Challenge: Sudden Relocation
To keep up with demand and increase capacity, Alli Fabrication moved into a 22,000 square-foot facility in 2020 and hired 10 more people. But then Alli had to quickly find a new facility within Delaware County, due to a variety of factors. The situation could have broken the business at a time of critical growth. Instead, Alli found Seedcopa’s website and inquired about SBA financing to see if they could afford to buy a building with the vast square footage they needed.
The Solution: Seedcopa & Partners
Seedcopa was able to connect Alli with Marcia McGavisk, Director of Capital Acquisition at Pennsylvania Small Business Development Centers (SBDC). She assisted Alli with the business plan and financial projections they needed to apply for an SBA 504 loan to purchase their new building. Then Seedcopa facilitated the SBA 504 loan with lending partner Franklin Mint FCU. Today, Alli Fabrication is at its new location at 414 MacDade Boulevard in Collingdale, PA.
What’s Next
Alli Fabrication was formed in 2014 as a metal fabrication and laser cutting manufacturer specializing in design, manufacturing, and installation of steel and glass partitions, as well as their metal design work and laser manufacturing abilities. Approximately 65% of revenues have come from their fabrication work, with the remaining 35% coming from laser and bending work. Now that two new machines are at the project property, that percentage is projected to shift to 46% fabrication and 54% laser, with margins much higher for clients requiring complex laser cutting services and quick production. Fifteen employees now work at the Collingdale facility with 5 to 15 more to be hired by the end of 2024.
