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| BUSINESS FINANCING IS MORE THAN JUST FINDING MONEY |
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Happy New Year and welcome to the inauguration of the Business Finance Division’s electronic newsletter.
Since its inception, the St. Louis County Economic Council’s Business Finance Division has been committed in finding the mix of funding options to insure our customer’s prospect for success. Noting that, our goal is far more than just funding a project.
We take pride in administering our below-market interest rate programs – the SBA 504 Loan Program and the tax-exempt bond programs. These two programs can save a business owner thousands of dollars in interest expense each year.
Equally important, we always are looking to develop new financing vehicles that make sense for St. Louis County businesses. Last year we introduced Bank Qualified Bonds, a special type of tax-exempt bonds that provide additional savings to 501(c)(3) organizations.
Another Economic Council initiative is the Saint Louis Business Development Fund, now in its tenth year. Owned by 22 banks and the three largest economic development agencies in the St. Louis area, SLBDF invests in regional companies without taking any equity.
Our success rate for loans is one of the strongest in the nation because of the measures we take prior to approving any financing program. The St. Louis County Economic Council believes a project is more than just a funding tool…it is an investment in our region.
Contact our office at 314-615-7667 to find out more about the variety of financing options that we can make available to you or visit the Business Finance Division’s website.
Sincerely,
Rick Palank
Sr. Vice President
Business Finance Division |
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| 504 RATES CONTINUE TO DROP |
6.09%, fixed for 20 years!
The current 504 rate, which is nearly 175 basis points below prime, provides an incredible opportunity for an expanding small business to lock into an extremely long term favorable rate.
Business Finance Division of the St. Louis County Economic Council is offering rates that are always well below market rates. This is because the underlying loan to a small business concern is guaranteed by the U.S. Government, bundled monthly with all other 504 loans nationwide, and then sold to institutional investors.
In addition to the 504 loan (which typically represents 40% of the total project’s cost), a participating bank provides a market-rate loan, and the small business concern injects only 10%.
For more information on the 504 loan program, call Rick Palank at 314-615-7667 or visit the Business Finance website, which includes a program description, the complete brochure, the application, the 12-month and our 504 rate schedule. |
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| NERINX HALL, BOY SCOUTS UTILIZE NEW BOND PROGRAM |
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Above is an artist's rendering of the addition that is under
construction at Nerinx Hall in Webster Groves. |
Over the past year, two well known St. Louis institutions took advantage of bank qualified bonds (BQBs) that resulted in a lower than otherwise attainable interest rate on their financing.
Nerinx Hall, an independent private Catholic high school for young women, has been a landmark of Webster Groves since 1924. SLCEC provided Nerinx use $5 million in bonds to construct a new performing arts facility, as well as make other improvements to its campus.
The Greater St. Louis Area Council, Boy Scouts of America, is recognized as the 3rd largest council in the nation. The Council is using $3.4 million in bonds to construct a training and conference center and a dining hall at its Beaumont Scout Reservation.
Although BQBs are available in other markets, they were not available in St. Louis County until last year. These bonds are limited to 501(c)(3) organizations, and provide additional savings to the borrower of up to 100 basis points.
Contact the Business Finance Division to find out how we can help your organization find the proper tool to finance your growing needs. |
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| CAFÉ BALABAN SERVES UP NEW OWNERSHIP |
The Saint Louis Business Development Fund is investing in the new owner of Café Balaban, a fixture in the Central West End since 1986. Brendan Marsden, owner of the very successful Modesto restaurant on the Hill, will restore Café Balaban to the highly acclaimed status it enjoyed for many years.
Marsden has a great deal of experience and success in managing and owning restaurants. One might say that the restaurant business is in his blood, as he is related to the owners of the famous Commanders Palace and Brennan’s in New Orleans’ French Quarter.
The Saint Louis Business Development Fund, which specializes in investing in companies without taking any ownership, partnered with U.S. Bank for this exciting and promising opportunity. |
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| SLCEC HELPS GET THE BUGS OUT OF ROTTLER GROWTH |
Rottler Pest & Soil Solutions is a second generation; family owned and operated company that has been growing since 1956. Founder Fred Rottler borrowed $10 from his wife’s aunt to purchase his first pesticide spray tank and to start a small pest control business during the black widow spider scare. In the 1980’s his two sons, Mike and Gary, joined the company and are the current owners.
At that time Rottler operated just two trucks – one for pest control and the other for termites. Since then, Rottler has grown to be one of the top 100 pest management firms in the nation and is the largest privately- owned pest management firm in Missouri. Rottler Pest & Lawn Solutions is one of the first pest management firms in the nation to bear the QualityPro Seal of Excellence.
The company has grown into a multimillion-dollar business. The extensive knowledge and experience of Mike and Gary Rottler will allow this company to continue to be a leader in the pest control industry.
Rottler Pest & Lawn Solutions employs 73 people, operating three branches in the St. Louis area. Due to the fast growth of the business, a move to a new corporate headquarters was necessary. The purchase of the land and new construction of the 16,000 square foot building in St. Louis County was financed with the 504 loan from SLCEC's Business Finance Division and the participating bank, Alliance Credit Union.
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| BUSINESS FINANCE REPORTS $78 MILLION IN LOANS AND BONDS FOR 2006 |
Denny Coleman, President and CEO for the St. Louis County Economic Council reported the organization recorded over $78 Million in bonds and loans for calendar year 2006.
“Our loan and bond portfolio continues to demonstrate the strong business climate in the St. Louis region,” Coleman stated.
Rick Palank, Sr. Vice President of Business Finance stated the report indicates the diversity of investments St. Louis County has participated in over the past year.
“We have funded projects over $1,000,000 and as low as $20,000,” said Palank. “This shows that St. Louis County is committed to helping companies of all sizes.”
“We also recognize the importance of investing in the entire St. Louis region,” Palank added. “That is why we actively participate in the Saint Louis Business Development Fund (SLBDF).”
SLBDF is a cooperative effort between the St. Louis County Economic Council, St. Louis Development Corporation, EDC of St. Charles County and twenty-two (22) banks which helps finance growing companies in the St. Louis metro area without taking an equity position in the business.
“Not only is SLCEC an investor in SLBDF, but we also professionally manage the program for the shareholders,” Palank stated.
The SLCEC report encompasses both bonds and loans managed by the organization. The portfolio consists of 504 Loans, the Metropolitan Loan Program, Enterprise Center Loan Program, Brownfield Loan Program, Recycling Loan Program, Small Business Loan Program, Saint Louis Business Development Fund, Tax-Exempt Bonds and Bank Qualified Bonds.
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| VINCENT VOLPE NAMED NEW SLBDF BUSINESS LIAISON OFFICER |
The Saint Louis Business Development Fund is pleased to announce that Vincent Volpe has been retained to fill the new position of business liaison officer.
Vincent has 32 years experience in a professional career as a CPA, attorney, investment banker, operating executive, and management consultant.
Currently, Vince is an Assistant Professor of Management in the John Cook School of Business at Saint Louis University, where he teaches business law and entrepreneurship classes.
Prior to joining Saint Louis University, Vince held the following positions –
- Owner of Arbiris Consulting
- CEO of PPC International, a global behavioral healthcare company
- Investment banker with Pauli & Company
- Head of KPMG Mergers & Acquisitions Group in St. Louis
- Corporate attorney with Lewis, Rice & Fingersh
- Corporate attorney with Guilfoil Petzall & Shoemake
- Chief aide and counsel to former Mayor Vincent Schoemehl
Vince holds a JD and an MBA from Saint Louis University, a M.Ed. from William Paterson University, and a BA from Indiana University.
He has served as president of the Association for Corporate Growth, St. Louis chapter.
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