Good Supply owner completes purchase with SBA 504 financing from
First Merchants Bank & Indiana Statewide CDC
Good Supply Co. in Anderson is building a future on a basic idea. Owner James Jent says, "Everyone is always going to need plumbing and heating."
Jent recently bought Good Supply from his original partner with financing from the U.S. Small Business Administration 504 program for expanding businesses. First Merchants Bank and Indiana Statewide Certified Development Corporation provided the SBA loan.
Jent already had over 20 years in heating, ventilation and air conditioning (HVAC) work when he and Gary Goodwin started Good Supply in 1999. They bought a plumbing supply company and moved into its building in 2003.
Five mornings a week, contractors drive up to Good Supply and load up. "We also deliver to construction and remodeling sites all day," says Jent.
With building construction slow in Anderson, Jent says repair and remodeling are big growth areas.
"Most people are getting it fixed rather than getting it replaced," Jent says. His company supplies contractors on every type of remodeling and construction project from commercial buildings to homes built before 1900.
Good Supply employs five people, counting Jent.
Indiana Statewide CDC works with local lenders to provide SBA 504 loans for expanding companies. Congress created the SBA 504 program in 1983 to help small businesses gain favorable financing terms and retain operating cash while expanding.
"The SBA guarantees bonds that are sold to finance a portion of the loan, allow us to offer a low, fixed interest rate for as long as 20 years," says Jean Wojtowicz, executive director of the Indiana Statewide CDC.
"The guarantee also allows borrowers to pay as little as ten percent down. The interest rate and down payment stipulations are better than those provided by commercial financing," she adds.
Jent says, "I couldn't have bought the company without the SBA loan. I was real glad it was available."
Aaron Reger of First Merchants Bank says the SBA financing was a win for both the lender and borrower.
"SBA financing allowed the borrower to get a long term fixed rate financing that First Merchants would otherwise not been able to provide, and we were able to lessen the bank's exposure in a tough real estate market," Reger says.
The Indiana Statewide CDC has helped create or save more than 25,000 jobs in Indiana by providing SBA 504 loans.