Blue Bird Stone

Refinance equipment debt and provide Working Capital

Loan Amount
$3,625,000
Loan Type
USDA Business & Industry Guaranteed Loan
Term/Amort
15-year term, 15-year amortization
Collateral
State
Oklahoma

Guaranteed Lending Specialists recently assisted Mountain View Bank of Commerce through a $3,620,000 USDA Business & Industry (B&I) Guaranteed Loan for the refinance of equipment debt into long-term permanent financing for a quarry operation in Eastern Oklahoma. 

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Purpose of the Loan

This USDA B&I loan provided the Borrower with the capital needed to:

  • Acquire specialty equipment with better than traditional bank advance rates.
  • Increased amortization to preserve cash flows.

Strategic Benefits

  1. Provide Competitive Advance Rates on Specialty Equipment
    By working with an experienced Lender, the Borrower was able to move quickly through the USDA application process to secure critical specialty equipment with an advance rate better than traditional bank financing might allow.
  2. Financing for a Finite, Non-Renewal Resource

Quarries are unlike traditional real estate, in that their value is revied from an asset that is subject to fluctuations in pricing based on demand. Demand for stone, gravel, and sand are highly dependent on construction and infrastructure needs, which slow down during economic downturns.

  1. Maximizing Cash Flow Through Long-Term Financing
    The USDA B&I loan structure allowed for 15-year amortization, giving the Borrower the ability to finance at an attractive advance rate while preserving cash flow. This long horizon provides the flexibility needed to invest in facility improvements and scale operations over time.

Why USDA B&I?

The USDA Business & Industry Guaranteed Loan Program is a smart tool for rural and semi-rural businesses seeking competitive financing. In this case, it offered:

  • Extended terms and amortization to support long-term growth without the risk of a balloon payment
  • Reduced equity requirements compared to conventional financing

Building Together

At Guaranteed Lending Specialists, we take a curated approach to help both Lenders and Borrowers navigate the USDA Guaranteed Loan Programs to achieve their individual goals. We bring an expertise across all industries throughout the country.

If your business is expanding through acquisition or development in a rural area, our team is ready to help structure a USDA B&I loan that works for you. Not sure if your project is located in a rural area? Check out our mapping tool here.

Contact us today to explore how Guaranteed Lending Specialists can support your next strategic move.

Guaranteed Lending Specialists

Cole Wackenhuth
Visit glsusda.com to learn more.

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