Mud Hole Custom Tackle Reels in SBA 504 Loan for Major Expansion
The words “gone fishing” conjure a variety of images from Andy and Opie strolling to the fishin’ hole to the high energy pursuit of sport fish in blue water. Regardless if the motivation for fishing is relaxation or sport, we do love to fish. In 2018, the Recreation Boating & Fishing Foundation reported that an estimated 49 million Americans went fishing, spending more than $7.4 billion on fishing equipment.
Mud Hole Custom Tackle, Inc. was founded in Oviedo, FL in 1999 by Thomas McNamara and Scott Gimbert. Since then, it has become the world’s largest supplier of tackle crafting goods, rod building, fly tying and lure building.
With more than 500,000 items stocked in inventory, Mud Hole is the “go-to” supplier of hobbyists, small manufacturers and large OEM’s worldwide. When the time came to expand their operations, McNamara and Gimbert didn’t have to go fishing for funding – Florida First Capital was ready to help Mud Hole land an SBA 504 loan.
Florida First Capital helped Mud Hole secure financing for the ground-up construction of a 75,000 square-foot state-of-the art manufacturing and distribution center on 3.60 acres. With a total project cost of $8,961,140 with 90% financing at 3.45% fixed rate over 25 years, Mud Hole can maintain tight lines on their business.
“Using a 504 loan to fund ground-up construction is ideal for both the borrower and the lender,” said John Hanrahan, Florida First Capital Vice President and Business Development Officer for Central Florida. “With only 10% down, the borrower preserves vital working capital and gets a long term below-market fixed interest rate with predictable payments. The lending institution mitigates its loan-to-value exposure due to the program’s unique distributed credit structure making it a win-win.”
With an SBA 504 loan onboard, Mud Hole is reeling in success. Visit Mud Hole Custom Tackle at www.mudhole.com.
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 fixed heavy duty machinery and equipment, including commercial marine vessels.
504 loans are paired with private-sector commercial loans and provide up to $5 million of aggregate SBA eligibility on standard 504 projects; up to $5.5 million per 504 energy efficient green project not exceed $16.5 million in the aggregate; and up to $5.5 million per eligible small manufacturing project with no limit on total SBA dollars available. These are SBA 2nd mortgage loan portions only; there is no limit on overall project dollar size.
For more information about SBA 504 loans in Alabama, Florida or South Georgia, contact a Florida First Capital Loan Officer or email us at info@FloridaFirst.com. Phone: 850.681.3601 or toll-free at 800.504.LOAN.