The MadTree Brewing 2.0 50,000-sq ft facility in Oakley has been a highly visible project in Hamilton County during its construction. The much-anticipated opening was held last week. This $18 million expansion was funded in part by an SBA 504 loan from Alloy.
In addition to the $5,249,000 Alloy loan for the real estate and new equipment, MadTree took out an $8 million loan with Chase Bank, received $1.25 million from the City of Cincinnati for land improvement, received a $1.5 million loan from the State of Ohio, and received a Jobs Ohio grant for $0.5 million for not only retaining 50 jobs, but for creating an estimated additional 50 new jobs through 2020.
“Working with Alloy has been very easy, says MadTree partner Kenny McNutt. “I can always call them with any questions. They even gave me their personal cell numbers for me to reach them when they were out of the office. Most people have heard of the SBA, but without Alloy, the bank won’t come in, and you won’t get state and local investment,” he continues.
“It was really organic how it happened,” says MadTree partner Kenny McNutt. “We had the property under contract in April 2015, and spent the rest of the year putting our expansion plan together.”
One of the first calls McNutt made after seeing the property was to Alloy’s loan officer, who started paperwork for an SBA 504 loan. Alloy is a Certified Development Company, and as such, is approved to service SBA loans with a 40% stake in the project. A third-party lender holds the first property lien at 50%, and the borrower puts in 10-20% equity on the loan, depending on the project.
For more information on the SBA 504 Loan Program, go here, or call 513-631-8292.