Vista Dental Products Local Expansion


At a Glance!

Business Inter-Med, Inc. dba Vista Dental Products
Lending partner Wisconsin Bank & trust
Owner Gary Pond
Location City of Racine
Project Building purchase
Jobs retained 46 jobs
Jobs creating 43 jobs in 3 years
Financing source City Loan Fund

In September 2015, President/CEO of Vista Dental Products, Gary Pond, made the commitment to grow their business in the City of Racine with the successful relocation of the business into its newly purchased building on 2200 South Street. This expansion into the nearly 30,000 sq. ft. building will allow Vista to create 43 new jobs over the next 3 years. 

Inter-Med, Inc. dba Vista Dental Products newly purchased building on a sunny day

Founded in 1995, Vista Dental Products designs, manufactures and sells a broad line of 700+ branded catalog items of dental syringes. Vista outgrew its previously leased location at 2200 Northwestern Avenue. While this growing company could have made the decision to locate anywhere, its commitment to the local economy and its employees made it an easy decision to stay in Racine. The City of Racine was fully supportive of keeping the Company in Racine and provided local financial incentives as well.

With diligent work between Racine County Economic Development Corporation’s staff (Business Lending Partners parent company) and Wisconsin Bank & Trust, Vista Dental Products was approved for State of Wisconsin income tax credits of $400,000 typically used over 3 years as jobs are created. The management commented:

 “We appreciated Business Lending Partners’ genuine interest in establishing local relationships to assist during our move.  They were efficient and streamlined the lending process.  The staff at BLP was friendly, responsive, and easy to work with.“

Bill Loumos is working on the floor, keeping the warehouse organized and running

Christy Loew - Human Resource Manager at Vista, is very proud of working for the company. Besides the general benefits, Vista is very innovative about other programs to help its employees advance such as: educational assistance, tutoring assistance, mental health counseling and computer purchase programs. She said, “You [The employees] are only as good to us as you are to your home.”

Sandy is bonding 2 components to create a luer HVE adapter

 

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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