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Veris Manufacturing: Small Shop Feel, Big-time Growth
Veris Manufacturing was already a successful company for 14 years before Bill McIlvene took over the business and shifted it into another gear.
Founded in 1987 by electrical engineer John Ivory, Veris has made a name for itself providing contract electronic manufacturing services (EMS) to a variety of industries including aerospace, automotive, telecomm, medical and the military. Capabilities include circuit boards, on-site coating, assembly, and critical parts testing.
In 2001, Bill McIlvene (CEO) and Jay Cadler (President) took over the reins of Veris and began to expand the company’s capabilities by adding technology and acquiring quality certifications, all of which reinforced a reputation for superior value.
As the business grew, space became a premium. Warehouse space was insufficient and office space was limited. With their building lease expiring in 2015, McIlvene and Cadler went looking for a larger facility to accommodate their current needs and projected growth. They found a building 10 miles away in Brea.
Rather than lease the new space, Cadler suggested buying the facility and turned to SBA financing, which he had learned about at several seminars. In December last year, he and McIlvene closed on a $4.8 million SBA-504 loan with CDC Small Business Finance that allowed them to purchase their new home for Veris Manufacturing. At 27,000 square feet, it is double the space of their former location, plenty of room to accommodate warehousing and office needs as well as a showroom to demonstrate their products to clients. The owners anticipate growing the Veris workforce by 30% over the next two years.
“We’ve increased revenues tenfold since 2001, exceeded world class manufacturing benchmarks and developed a cross-functional workforce with one of the lowest turnover rates in the industry,” said McIlvene.
The Veris owners are also committed to philanthropy, supporting the Wounded Warrior Project, and the Kevin Armstrong M.D. Memorial Sports Foundation, established to encourage low-income youth to participate in sports in the Santa Ana Unified School District.
About the 504 Loan Program
The U.S. Small Business Administration 504 Loan or certified development company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates. The 504 loan program works by distributing the loan among three parties: the business owner, who puts in a minimum of 10%; a conventional lender, typically a bank, that puts up 50% of the project financing; and a certified development company (CDC) puts up the remaining 40%. Certified Development Companies are established under the 504 program as non-profit corporations set up to support economic growth in their local areas.