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SBA Helps Contractor Supply Company Build a Blueprint for Success

Picture of Robert Magbee

In 1954, in Atlanta, two brothers founded Magbee Contractors Supply, a small family-owned business that specializes in providing building material and products to professional builders. Over the years, as the city of Atlanta grew, the company grew from a two-person operation into a large regional supplier that currently employs more than 185 workers. Magbee’s success and growth has not come without its share of challenges and setbacks. 

 In 1992, Robert Magbee, a son of one of the founders, became the CEO. Magbee continued to grow the business until the great recession caused the housing market to crash. Revenue started dwindling as fewer houses were being built. As a former accountant, Magbee knew he had to find a way to reduce expenses and free up cash flow. Despite his company’s track record of success and established relationships with area lenders, he was denied several working capital loans. “The recession made us as risky as a startup in the bank’s eyes and they would not lend to us,” says Magbee.

 Fortunately, the CEO saw an article in a local business journal about the loan programs guaranteed by the U.S. Small Business Administration. Robert contacted the Georgia District Office and was connected with the Georgia Small Business Development Center. The counselors there helped him prepare his loan packages, leading to him being approved for two 7(a) loans for working capital.

 It wasn’t until he was approved for a 504 loan was he able to maximize his cash flow and set his business up for success. “The 504 loan gave us the opportunity to move capital out of real estate and machinery and put it back into the business, the CEO explains.

 “If it wasn’t for the SBA and their programs, I know my company would not be where it is now. They made it easy for the banks to say yes and support our growth. I think every business owner should connect with the SBA and take full advantage of their programs and services. It can really make the difference between success and failure,” says Magbee.

 The company is now stable and posed for success thanks to its savvy accountant turned CEO and the SBA. When Robert assumed control of the company, its annual revenue hovered around $18 million and now he proudly reveals that number has grown to more than $75 million.  

Company Name: 
Magbee Contractors Supply
Atlanta, GA
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