A Marble and Stone Fabrication Company

Project Summary:

A granite and marble manufacturing company in Brooklyn needed to finance the acquisition and equipping of their new manufacturing facility. The Company wanted to establish a permanent facility and move out of inefficient leased space.

Issues:

• The client was able to contribute only 10% in equity for the project and needed 90% financing to make its ownership dream come true. The client was offering high returns to equity investors for injection of funds into the project.
• The client had been denied financing by the banks that they had approached.

Solution: 

• We advised the client on financial modeling and structuring and helped them qualify for an SBA loan with 90% financing, enabling them to avoid using high cost equity in the project. We arranged both the bank and SBA financing transactions. 
• The blended rate on the financing was 5.50% for 90% financing, half of which was fixed for 20 years.

Benefit:

In addition to closing the project, we helped the client save money using various economic development incentive programs which provided waiver of the 2.8% mortgage recording tax, 100% abatement of land taxes on the project for 25 years, stabilization of building taxes for 25 years, energy cost savings, and other New York State tax credits.