On February 21, 2018, Congressman Mike Bost (IL-12) visited a rural small business, Magnum Steel Works, Inc., in Mt. Vernon, Illinois. The purpose of this visit was to get a firsthand glimpse of the impact local business expansion has on its community. He also learned how the SBA 504 Loan Program helps businesses grow through the purchase of commercial real estate and equipment.
Jim Czerwinski opened Magnum Steel Works, Inc. because he saw renewed development of coal mining in the local area and wanted to fulfill the need for a mining equipment repair facility that could repair and rebuild equipment locally. Incorporated in 2005 with just five employees and a 12,000 square foot facility, Magnum Steel Works, Inc. has expanded numerous times…most recently to a brand new state-of-the-art facility providing over 128,000 square feet, which houses 90 employees. Not only did this expansion project fulfill the public policy goal of Rural Development, it is a great example of the investment and job creation potential of our nation’s small businesses.
504 Loans grow communities and allow businesses to build a long-term foundation in their community.
Congressman Bost, a business owner himself, has always fought for job growth. Meeting the owner of Magnum Steel Works, Inc. and learning more about the SBA’s 504 Loan Program is just one one of the many ways he has immersed himself in understanding the economic needs of his district. The 504 Loan Program, an economic development and jobs program at its core, requires that, for each $65,000 in financing, one job must be created/retained, or the project must meet one of several public policy goals. And the statistics speak for themselves. According to recent SBA data, since 1991, 504 loans have created or sustained 2.1 million jobs. In fact, 504 loans have added over 87,000 jobs to Illinois…6,700 of which were added to District 12 alone. It is nearly impossible to drive through the state of Illinois and not see businesses that have funded their growth, and, thus, positively impacted communities, by use of the 504. Plus, as an added bonus, the 504 Loan Program is self-supporting and costs taxpayers nothing.
The Community Benefits of the SBA 504 Loan Program
- Job creation and retention
- Local economic growth and investment
- Encourages free competitive enterprise
- Helps maintain local consumer spending
- Increases consumer confidence
- Supports the development of minority, women, and veteran-owned businesses
- Revitalizes business districts
- Expands capital access in economically disadvantaged rural areas
- Encourages innovation
If you run a small to medium sized business, or if you are part of an economic development team, and need quality business expansion financing, Growth Corp’s team of professionals will work with you directly to provide the best financing strategy for reaching your goal. Contact any member of our Lending Team today!