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SunTrust Bank-SBA Loan Helps True Communications to Hire 180 Employees, Buy Equipment
SunTrust Bank's Deric Mims helped structure the loan for True Communications. True Comm President Stephen Libonate accepts the big check from Mims and SBA's Antonio Doss, District Director (Acting).
True Communications, a Service Disabled Veteran Owned Small Business (SDVOSB), recently received a $4.288 million dollar SBA loan from SunTrust Bank. Based in Dulles, Va., the firm's customers include Verizon, AT&T, Veterans Affairs, the IRS, and the FAA. True Comm is a certified partner with Cisco, NEC, Hewlett Packard, Sprint and T-Mobile. The company is an integrator of leading edge IP based Voice, Video and Data technologies specializing in the design and delivery of both wired and wireless technologies including Voice over Internet Protocol, Wireless Data delivery, Tele-Medicine and Energy Automation.
With a desire to hire about 180 new employees and to buy equipment, True Communications needed working capital to facilitate company growth. They considered a conventional $1 million Line of Credit to replace the current factoring resource. Although the company had a competent and experienced management team and strong cash flow, because they lacked sufficient collateral, they had a hard time getting the capital they needed. True Comm saw the SBA solution as an attractive alternative to the Private Equity Market. SunTrust provided $3.5 million in permanent working capital plus another half million to pay off two notes from a private equity source. At the check presentation, Stephen Libonate the President of True Communications Inc., said “The financial resource provided with this working capital allows True Comm to compete and expand in the ever growing technology market place.” SunTrust's Adam Winder, Commercial Relationship Manager assisted with the loan, which was structured with a 9-month interest-only period to allow the company to draw down funds as needed. Once the interest-only period expires the outstanding balance will be repaid over 7 years. This structure would not have been possible in a conventional loan. The fact that the majority of the collateral is outside of the SunTrust footprint added to the challenges. All said, the SBA loan will enable the company to reach the growth goals it has set for itself while creating much needed jobs.