SBA 504 loans are primarily used for financing commercial real estate. However, the program does allow, for the acquisition of heavy equipment with a useful life exceeding 10 years.
In fact, we’ve closed such a loan. Fountainhead closed a $1.3 million loan used for the acquisition of heavy equipment. Natstone, LLC, a manufacturer of thermal bluestone, was the business in this closing.
Natstone, located in Montrose, PA., acquired the necessary equipment needed to mine, treat, and manufacture natural stone products. These products are used for patios, walkways, building facades, landscaping and pool decks. The equipment acquired included loaders, forklifts, large off-road trucks, backhoes, rock cutting equipment and a stone processing line.
Natstone is confident the rapid growth for thermal bluestone will continue because consumers have a strong desire for natural stone and appreciate the safety aspects of the non-slip surface. Similarly, Natstone credits the aesthetics of the uniform appearance.
The Fountainhead Team enjoyed working with Augusta Deluca, the owner of Natstone. We wish him the very best in becoming the leader in this industry. We look forward to seeing him create wealth due to utilizing the 504 loan program to expand his business.
If you, or one of your clients, are seeking a loan for the acquisition of heavy equipment, please contact us and we will see how we can help!