Still Bringing Home the Bacon (and Ham) with an SBA Loan

Situation:

  • Broadbent B&B Food Products, Inc. d/b/a Broadbent Hams, has been curing country hams, bacon and sausage since 1909.
  • The company went through rapid expansion and several changes in ownership before being purchased by Elizabeth and Ronald Drennan in 1999.
  • While business was good and the reputation excellent, the company was housed in three leased facilities, which were very old and outdated. 
  • Beth Drennan stated that the biggest challenge was operating in multiple buildings with inefficient production equipment.

Solution: How the SBA Helped:

  • With the assistance of an SBA lender, Beth and Ronny were able to expand their business and move it to a single, new location in rural Lyon County. 
  • The SBA 504 loan enabled the company to own one efficient building, achieve higher production standards, accept larger orders and eliminate lease payments.
  • Consolidating all operations into one building large facility has allowed the company space to purchase two major pieces of equipment.
  • The SBA loan locked in a competitive, long term interest rate (20 years on the building and land; 10 years on equipment).

Successful Impact/Outcome: 

  • The new facility resulted in better product yield and increased profitability. 
  • The SBA 504 loan also allowed the company to improve cash flow, which was used to:
    • Hire 16 more employees in rural Kentucky, increasing employment by 60%;
    • Devote more space to cure products efficiently;
    • Allow potential customers to tour the facility, creating new revenue;
    • Expand the business through food shows and private label products;
    • Increase advertising campaigns to grow the mail order business;
    • Open a gourmet gift shop and café to tap into a whole new avenue for growth.

Beth and Ronny Drennan also believe strongly in giving back. They support local food banks and shelters. They also contribute time and money to many other nonprofit organizations.

 

Company Name: 
Broadbent B&B Food Products, Inc. d/b/a Broadbent Hams
Location: 
Kuttawa, KY 42055 (Lyon County)