The recent interest in domestic manufacturing has struck a chord with me (and many others). When I was fresh out of college, I was hired by Polaroid (remember them?!?) to work on a technology-transfer project that brought a now-archaic production process from Yamagata, Japan to Boston. I spent a year in R&D, then moved to manufacturing to scale up the chemistry that ended up in one of Polaroid’s films. I left Polaroid in ’91 and, ever since graduating from business school, have spent the entirety of career in finance. But owing to that early experience, I have always loved, respected, and supported manufacturers.
I never bought into the idea that globalization and capitalism efficiently allocated resources nor that it was okay to rely on other countries to make and grow everything for us because of some theoretical “competitive advantage” that turned out to rely mostly on cheap labor and unfair trade practices.
So, I suppose it goes without saying that I wholeheartedly support the recent trend to reshoring and the US Small Business Administration’s (SBA) focus on manufacturing.
At Gulf Coast Small Business Lending, we provide SBA loans, both 7(a) term loans and lines of credit to the small business community who continue to be a critical component to all aspects of our economy. We have special interest in supporting these businesses, roughly along the following categories:
- Reshoring – financing efforts to expand domestic manufacturing to replace imported parts, components and finished goods. SBA loans can be used for equipment, plants, warehouses, and inventory, as well as general working capital.
- Specific industries – critical businesses are a high priority to our economy and our security and, as such, deserve the added support. Medical devices, aerospace, defense, and pharma are just a few examples. Again, SBA loans can be used to expand production with emphasis on capital expenditure.
- Modernizing legacy infrastructure – Manufacturing stateside never went away, but in many cases suffered from underinvestment and, in some cases, neglect. With the long amortization schedules and high advance rates offered through SBA loan programs, we are ideally suited to provide critical financing with the goal of bringing facilities up to date.
- Working capital cycles – Manufacturing rather than importing changes the operating cash cycle of a business, especially during the transition period. An SBA 7a loan can help clean up a balance sheet and together with a line of credit, offer additional liquidity.
- Supply-chain players – In many instances, small businesses provide parts, sub-components, and components to larger manufacturers. These businesses are of particular interest to us.
As a large nationwide SBA Preferred Lender, our experienced Gulf Coast Small Business Lending team is committed to supporting small businesses across many sectors and industries. As our economy pivots more towards manufacturing, we are delighted stand alongside America’s entrepreneurs to be a small part in strengthening the US industrial base and the long-term growth and competitiveness of American manufacturers.
If you are interested in more information or want to discuss a financing need, please reach out to me or one of our Gulf Coast Small Business Lending business development officers (contact information here: https://gulfcoastsba.com/our-people/). We are finding a way to say YES!