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SBA Loan Program Equals Jobs For Morgantown Economy
Dr. Kevin Trembush, owner of Advantage Health & Wellness, PLLC in Morgantown is looking for the wave of the future in preventative health care.
“Today’s healthcare system seems to be too dependent on drugs and surgery to fix a medical issue,” said Trembush. “It makes better sense to try to understand the cause of the ill health and correct that through basic life style adaptions, nutritional intake, and reduction of stress to allow your body to be healthy.”
At his healthcare facility, Trembush focuses on physical, functional medicine to integrate other healthcare provider educations and philosophies into a single program whose focus is on achieving and maintaining health, using drug or surgeries as a last resort. The chiropractic doctor is combining the knowledge of chiropractors, physical and massage therapists, nutritionists and medical doctors to naturally treat patients to better manage their health concerns and issues.
Before Trembush could bring all the different medical facets together in one area, he was going to need a much larger and more functional building than the 3,200 square foot area he was leasing. That’s when he approached Don Robinson at Huntington National Bank in Morgantown to inquire about financing options to build a 5,600 square foot modern facility.
“Don had commercial lending experience and thought the U.S. Small Business Administration’s Certified Development Company 504 loan program would be an excellent fit for our project,” added Trembush. “He put my wife April and me in touch with Dee McCormick at the Regional Economic Development Partnership in Wheeling, a certified SBA 504 lender for the entire state, and things quickly fell into place.”
SBA’s 504 Loan program is an economic development program that supports small business growth and helps communities through business expansion and job creation. The 504 program provides businesses with long-term, fixed-rate, subordinate mortgage financing for acquisition of capital assets, including land, buildings and equipment.
“Working with Dee on the SBA 504 loan was great,” said Trembush. “You figure a government agency would slow down the process, but the 504 loan application process actually stayed at pace or ahead of the bank.”
The SBA 504 loan was actually approved under the American Recovery and Reinvestment Act (ARRA) which at the time allowed for the waiving of fees and a lower interest rate, which saved Trembush thousands of dollars.
“The SBA 504 loan actually surprised us with how efficient the process was,” Trembush said. “We are extremely happy with the loan terms and how helpful everyone was during the entire process.”
With job creation being a main focus of the 504 program, once the facility was completed and everything was up and running, Trembush was able to nearly double his staffing to 30 employees.
I’ve heard it said that luck is when preparation meets opportunity and a lot of luck was involved with this project,” said Trembush. “The business was ready for this and it couldn’t have happened without the support of the SBA 504 loan program. It has allowed us to grow, create jobs, and hopefully create a model for the future of the healthcare industry.”
SBA’s 504 loans are provided through an SBA-approved CDC. CDC’s work with banks and other lenders to make loans on reasonable terms, helping lenders retain growing customers and provide Community Redevelopment Act credit. A complete 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of a project, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business concern. The maximum long-term loan is $5 million for most businesses and up to $5.5 million for manufacturers and energy public policy projects.
For information on the SBA 504 and other loan programs and services, contact the SBA’s West Virginia or Charleston Branch offices at 304-623-5631 or 304-347-5220 respectively or visit www.sba.gov/wv.