SBA 504 Loan Helps Revitalize Snack Manufacturing in North Central Florida
A new company, Mestizo Foods, which makes private label snack foods and whose savvy principals include the founding president of a big-league sports franchise, has the former Golden Flake snack foods factory in Ocala operating again.
The plant was constructed by Golden Flake in 1984 and was operated by such until Golden Flake was acquired by Utz in July 2016. The 28-acre facility sat vacant as the production room within the facility and the roof of the plant were destroyed by fire in October 2016.
To facilitate the purchase of the plant and get it up and running again, Danny Villanueva, a principal of Mestizo, worked with Florida First Capital and the Small Business Administration (SBA) 504 Loan Program. A total of $9,750,000 in 504 loan proceeds were used to extensively renovate the 88,753 square-foot facility and purchase both new equipment and existing equipment for the 24-hour operation.
The first mortgage commercial lending partner in the deal also used the 504 Bridge Loan Program available through Florida First Capital to cover the second mortgage during the interim period of the project until the permanent SBA second mortgage takeout occurred, thus reducing the first mortgage lender’s interim phase risk exposure.
The SBA 504 Loan Program provides up to 90% financing at below-market, fixed interest rates and long amortization terms up to 25 years for the purchase of major fixed assets, such as owner-occupied commercial real estate, energy efficient “green” initiatives and/or heavy duty machinery and equipment.
“Manufacturers particularly benefit from the 504 Loan Program as they qualify for up to $5.5 million per eligible 504 project with no limit on the total SBA dollars available,” said Kristen Tackett, Florida First Capital Vice President and Business Development Officer for Northeast Florida. “This was a win-win for both the manufacturer and the local economy that benefits from the creation of 50 full-time positions,” she said.
Villanueva, 58, is no stranger to start-ups, including those of a high-profile variety. He was president of the Los Angeles Galaxy in the early years of Major League Soccer. His late father, also named Danny, was a kicker and punter for the Los Angeles Rams and Dallas Cowboys and co-founded a Spanish-language media company that later became Univision. The younger Villanueva helped establish and manage Univision affiliates in a number of major markets. More recently, he has been active in investment groups and in the food industry.
For more information about SBA 504 loans in Alabama, Florida or South Georgia, contact a Florida First Capital Loan Officer or email us at email@example.com. Phone: 850.681.3601 or toll-free at 800.504.LOAN.