FSC Approves 2,000,000 in new loan commitments to Prince George's County small and minority-owned businesses
1/6/2011, 8:31 a.m.
County Executive Rushern Baker and the Board of Directors of FSC First are pleased to announce that FSC First has approved more than $2,000,000 in new funding requests to five local businesses in Prince George's County.
The Prince George's Financial Services Corporation, doing business as FSC First, operates a revolving loan fund that has been capitalized with more than $3 million in lines of credit from 11 local financial institutions. FSC First is a non-traditional lender that provides access to credit to businesses that are challenged to obtain loans from traditional lenders.
County Executive Rushern L. Baker, III, stated "the fact that FSC First has issued more than $2.0 Million in loan commitments to small and minority-owned businesses is a strong indication of the organization's ability to achieve its mission to provide access to innovative and creative financing solutions.
It is imperative that FSC First continue at this pace to achieve and/or exceed its fiscal year lending goal while at the same time balance its portfolio risk by lending to the most prepared and demonstrated businesses. This is the "grassroots" way we can increase employment opportunities for the residents of Prince George's County, while at the same time retain the intellectual capital that resides in our communities, increase the commercial occupancy rates, increase commercial property ownership, increase revenues from licenses, permits, filing, recordation and transfer fees."
Day care center -- A start-up, woman-owned Goddard School -- franchise day care facility in Bowie was approved for up to $930,000 in SBA 504 funding
with a fixed rate, 20-year mortgage that will be combined with a first trust mortgage, a $50,000 City of Bowie revolving loan and equity financing. The approved SBA 504 loan will be used to acquire commercial land in Bowie and construct a facility to accommodate a start-up day care operation.
FSC First Board of Director's Chairman, John L. Huggins, Jr. Courtesy Photo
Tuawana Braxton (left)- Pridgen, Owners of Pridgen Funeral Services, one of FSC First's borrowers. Shelly M. Gross-Wade (right), FSC First President and CEO Courtesy Photo
Automotive specialty parts firm -- a three-year old automotive parts company located in Hyattsville specializing in wholesale and online sales received a commitment for a direct loan of $250,000 that will fund the purchase of inventory and refinanced debt. When fully disbursed, the loan proceeds will allow this company to increase the demands nationwide for their specialty products to include individuals, independent contractors, body shops, automotive dealers, etc. The company has experienced a steady revenue growth and is forecasting a 53% increase in revenues as a result of improved access to new domestic and international market sales in the first two years after the loan has funded.
Funeral services firm -- a local woman-owned funeral services firm was approved for $463,000 to fund their relocation and expansion. The first commitment is to fund up to $378,000 in a SBA 504 loan with a fixed rate, 20-year mortgage that will be combined with a $462,500 first trust mortgage and $92,500 in equity financing. The mortgage loans will be supplemented by an approved direct loan of $85,000 to fund the day-to-day working capital, as well as the purchase of furniture, fixtures and equipment associated with the relocation and expansion. The approved SBA 504 loan will be used to acquire commercial real estate and facility in Laurel and fund improvements to convert a former real estate office into a 75 seat chapel, two handicap accessible restrooms, and signage, entrance and facility improvements.
Therapeutic center -- a local woman-owned occupational therapy firm was approved for a direct loan of $25,000 to establish a second location and rehire employees on a permanent basis. This is the result of an effort to re-position the company to improve access to its current customers. As a result of this working capital loan to fund the day-to-day operations, the company is forecasted to double its revenues by the end of 2012.
Management services firm -- A professional services, 8(a) certified firm was approved for a $131,000 SBA 504 loan to purchase two condominium office suites in Greenbelt and to fund the improvements to the facility. The firm is currently located in the TAC incubator hosted by the Prince George's County Economic Development Corporation and received loan packaging assistance from the Small Business Initiative. When fully funded this loan will be combined with a first trust mortgage and equity financing and will employ 15 full time jobs.
FSC First is the premier lender of non-traditional financing for small and minority-owned businesses. This 32-year old non-profit organization's mission is to provide access to creative, flexible, and innovative financing solutions through direct loans, accounts receivable financing, and contract financing ranging from $25,000 to $250,000; including SBA 504 commercial real estate and equipment loans up to $5.0 million.
FSC First is also a community development financial institution (CDFI) as designated by the U. S. Treasury Department and a certified development company (CDC) as designated by the U. S. Small Business Administration to market and process SBA 504s throughout the State of Maryland.
FSC First is located at 1100 Mercantile Lane, Suite 115-A, in Largo, MD. For additional information please visit our website at www.fscfirst.com.