Somebody forgot to tell Steico Industries the economy is in the throes of a recession.
Founded in 2001, this Oceanside-based manufacturer of aerospace precision tubes and welded assemblies has been growing at a 35-percent clip annually. Sales have climbed steadily from $479,000 in 2001 to $15.8 million last year. Projections for 2009 are a cool $19 million.
"All the stars have definitely lined up for us," said company president and entrepreneur Troy Steiner, a 22-year veteran of aerospace manufacturing.
Steico Industries services the aerospace industry as well as medical and high-tech sectors. The company manufactures products to exact customer specifications, using state-of-the-art equipment and processes.
Over the past two years Steiner has moved the company into its current location, which consists of two side-by-side, custom-built, industrial facilities with over 65,000 square feet ft. He utilized the SBA-504 loan program to finance the purchase of these buildings.
Other benefits of the SBA-504 loan include a low down-payment by the small business (only 10%) and a below-market interest rate. The 504 rate has been at historic lows over the past few months.
Flush with success, Steiner recently approached 1st Pacific Bank of California about a third 504 loan to acquire a $1 million robotic, laser, tube-cutting system that will be one of only two such pieces of equipment in the world.
"It will automate what is now a manual process, increase our efficiency by 4,000 percent and allow us to continue to grow," he said.
Rob Pedersen, senior vice president of 1st Pacific Bank, shepherded the 504 process, choosing to partner with Ken Rosenthal of CDC Small Business Finance, the nation’s largest 504 lender.
"Our goal is to add value to our clients’ businesses and build long term relationships ," said Rob Pedersen, senior vice president of 1st Pacific Bank. "Our seasoned SBA team believed the SBA-504 loan was the best tool to help Steico Industries acquire the sophisticated equipment they need to grow and be even more successful."
CDC senior loan officer Rosenthal added: "The SBA-504 loan is particularly beneficial to manufacturing companies like Steico because the loan size can go up to $4 million."
At Steico’s current pace of growth, Steiner anticipates he will need to expand his current workforce from 92 employees to 130 next year.
— For more information about SBA-504 loans, contact CDC Small Business Finance loan officers Ken Rosenthal, (619) 243-8607 or Mike Sarthou, (619) 243-8608.