Integrity Funeral Services and its commitment in Waterford


At a Glance!

Business Integrity Funeral Services
Lending partner Community State Bank
Owner Cindi and Adam Schweitzer
Location Village of Rochester
Project Building purchase
Jobs creating 3 jobs in 2 years
Financing source Racine County Community Development Block Grant revolving loan fund (CDBG RLF)

Caring, comfortable, respectful, professional, affordable and friendly are a few words customers use to describe Integrity Funeral Services. Their hard work and dedication to their customers has been rewarded with an increase in sales and reputation over the years. In December 2011, the business was founded by Waterford residents Cindi and Adam Schweitzer to provide a low-cost alternative to traditional funeral homes for families in Southeast Wisconsin. Its concept allows families to use their own church or another facility to host their visitation and memorial service, thus allowing them to save with lower fees and merchandise costs.

Cindi and Adam Schweitzer standing proud in front of their newly purchased building

In May 2015, the Schweitzer’s made a commitment to grow their business in Village of Rochester by purchasing its previously leased building. The purchase of the building will accommodate the company growth, strengthen its stability and allow for additional income by leasing parts of its building to other tenants. Business Lending Partners (BLP) partnered with Community State Bank to assist Integrity with the real estate purchase. By using one of BLP’s local loan programs, Integrity was able to retain its cash for other business needs while taking advantage of the low down payment requirement and low interest rate that the loan program offers.

When asked about her experience with BLP throughout the financing process, Cindi commented: “You [BLP] are more than a loan provider. You [BLP] are a business partner of ours, helping us to continue with our success, our needs, changes and growth."

Part of the company’s success is also the owners’ commitment to Waterford in building a better community. Cindi stated: “My philosophy is that the community is only as healthy as businesses participate and contribute to it.” She created the iCare program, a group dedicated to fight teen suicide and drug abuse. Integrity also participates in and sponsors multiple other community events. When asked how valuable Waterford is to the business, Cindi answered: “We like the location because we are surrounded by many towns, communities and families who can utilize our excellent service within a reasonable distance.

CHECK OUT MORE SUCCESSES

SBA 504

February 2018

20-Year Fixed Rate:

4.940%

10-Year Fixed Rate:

4.657%

 

 

  Borrower Benefits
  • Lower Down Payments Required
    The borrower may provide a cash down payment as low as 10% of the total funding needs, allowing them to save their cash for other business needs.

     
  • Fixed Rates on SBA 504 Loan
    The borrowers do not have the risk of an increase in the interest rate on the SBA loan making long-term planning for the business easier because borrowers know the amount of their mortgage payments for the next 20 years.
     
  • Long Term
    SBA 504 loans are made for 10 or 20 year terms. Longer terms results in lower monthly payments for the borrower without the concern of balloon payments due prior to the loan maturity.

     
  • Low Interest Rates
    The long-term, competitive interest rate results in savings over the life of the loan.

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 Eligible Use of Funds

  • Land Purchases
  • Site Improvements
  • Existing building purchases, expansions or renovations
  • New construction
  • Equipment purchase and installation
  • Projected related costs such as furniture and fixtures, title insurance fees, legal fees, appraisals, environmental reports, architects fees, survey costs, points on bridge loans, etc.
  • Refinancing – Limited debt refinancing is permitted but must involve a business expansion where the refinance may not exceed 50% of the project costs (other restrictions apply).
 
Ineligible Use of Funds
  • Working Capital
  • Inventory
  • Vehicles licensed to be on the roads (trucks, cars)
  • Stock purchases

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Eligible Businesses
  • Must be a for-profit business
     
  • Size Standard:
    The business must be small as defined by SBA as those businesses with a net worth below $15 million and an average net profit (after taxes) for the last two years of below $5 million.  If these standards are exceeded, the business can still qualify for the program by meeting other SBA size standards based on either number of employees or annual revenue, depending upon the industry.
     
  • Citizenship Requirement: 
    The business owner(s) must be U.S. Citizen(s) or resident alien(s) with permanent resident status.

     
  • Occupancy Requirement: 
    For funding projects that include real estate, the business must intend to occupy at least 51% of the 'Rentable Property' for existing structures or at least 60% of the 'Rentable Property' initially (and 80% over time) for new construction projects.  "Rentable Property" is the total square footage of all buildings or facilities used for business operations, which may include exterior space (except parking areas) that is actively used in Borrower's business operations.
     
  • Job Requirements and Waivers:
    The small business must meet the job creation/retention requirement or qualify for a waiver. The general requirement is one job per $65,000 in SBA funding for typical 504 loans, or one job per $100,000 for small manufacturers.  If a business does not meet the job creation/retention goals of the SBA, they may qualify for the program under one of the other goals of the program found here.
 
Ineligible Businesses
  • Non-profit businesses
  • Lending institutions
  • Insurance institutions
  • Gambling organizations
  • Businesses of a prurient nature
  • Businesses of restricted nature that exclude based on race, sex, or creed
  • Speculative businesses/development
  • Businesses located in a foreign country

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 SBA Loan Fees and Pre-Payment Information

  • Approximately 3.2% administrative fees are financed in the SBA loan amount.
  • $2,500 for legal fees for the loan closing are financed in loan amount.
  • Participating bank is charged a 0.5% senior lien holder fee.
  • Out-of-pocket costs are charged directly to the customer, i.e. title insurance for closing, lien searches, recording the mortgage, etc.

‚ÄčThe majority of the fees are collected at the time of loan funding and financed in the SBA 504 loan amount.  A $2,500 fee is collected at the time of loan approval and applied towards closing costs.  Ongoing servicing fees are reflected in the 'blended interest rates'.

Discounts offered to Veterans!  BLP offers the following discounts on SBA 504 loans to businesses at least 51% owned by military veterans:

Loans less than $1.5MM:  0.5% of processing fee is waived (up to $7,500 savings)

Loans more than $1.5MM:  0.25% of processing fee is waived (up to $12,500 savings)

 

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SBA 504 Pre-Payment Information

During the first half of the SBA 504 loan term, a prepayment penalty exists.  Therefore, it is recommended that if the business wants to pay down some of its long term debt, that they prepay the bank portion of the financing package. The SBA loan cannot be partially prepaid.  The prepayment penalty declines every six months based upon the remaining principal balance of the loan and disappears altogether a 20-year loan reaches 10 years and a 10-year SBA loan reaches five years.

Guidelines regarding prepaying SBA 504 loans are as follows:

  • Company needs to notify BLP, in writing, at minimum 45 days prior to the date they would like to prepay their SBA 504 loan.
     
  • An SBA loan can be prepaid any month, however, it is recommended that if the borrower wishes to prepay their loan it is done on a six month interval to save on interest payments.
     
  • Prepayment penalties may apply. Prepayment penalty levels decline at six (6) month intervals and are eliminated once half of the term has passed.
     
  • The prepayment penalty is an amount equal to the outstanding principal balance plus accrued interest and the prepayment penalty.
     
  • Generally, the prepayment penalty equals 100% of the interest lost in the first year of the loan, 90% of lost interest in the second year, 80% the third year, etc.  After the tenth year, this becomes 0%.
     
  • Upon the funding of an SBA loan, the customer is provided a prepayment schedule which provides the dollar amount of the penalty for prepayments every sixth month until the penalty no longer applies.

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