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National Steel Erectors expands capacity with SBA 504 financing from National City Bank & Indiana Statewide CDC
National Steel Erectors, Inc. is helping define Indiana's skyline. The four-year old company erects structural steel and precast concrete supports for commercial construction projects.
National Steel recently purchased and moved into a building that will allow it to increase its capacity. The purchase was assisted by National City Bank and Indiana Statewide Certified Development Corporation which provided an expansion loan from the U.S. Small Business Administration 504 program. National Steel Erectors' new building is a 20,000 square foot industrial building with two acres of outside storage space.
The three founders brought varied experiences to National Steel Erectors. Jeff Porter, Jr. is the business administrator. He graduated from Franklin College and helped start National Steel after 12 years in construction management. Mike Chapman, the operations manager, is a union ironworker and U.S. Marine veteran. Maintenance manager Jeff Porter, Sr. has more than 25 years in maintaining equipment and rigging.
The company's 65 employees have built downtown condominiums, manufacturing buildings and the Altra Ethanol plant near Cloverdale in Putnam County. National Steel's school projects include additions to Lawrence Central High School, Indianapolis Public School 84, the Indiana Wesleyan University Chapel in Marion and the Dehority residence hall complex at Ball State University in Muncie.
"Our crew puts up the building's skeleton, the steel beams and concrete precast structural pieces that support the structure and give it shape," says Porter.
Indiana Statewide CDC works with local lenders to provide SBA 504 loans. Congress created the SBA 504 program 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 so we can 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," she adds. Conventional business loans usually require 20 to 30 percent down and do not allow for a fixed, long-term interest rate.
Porter adds, "The 504 financing was exactly right for us. We wanted the low interest rate and are happy with the final package."
Penny Lewis of National City Bank says, "Our bank is honored to serve National Steel Erectors' financial needs and we look forward to a long-term banking relationship in assisting the company, the owners and their employees in meeting their financial goals."
The Indiana Statewide CDC is Indiana's largest SBA 504 lender. It has helped create or saved more than 26,000 jobs with the loans in all regions of Indiana.
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