BDS Fastener & Supply LLC prides itself on providing superior customer service. They are an ISO certified fastener distributor and provide services such as Vendor Managed Inventory Programs (VMI) for their Class C Commodities, kitting, bagging/custom packaging, and specialty and standard fastener products.

They have a strong presence with customers in the Midwest, across the United States and even in Mexico, Canada, Italy, Belgium, and Switzerland. 

In 2012, current owner Dave Schmitting, who was a senior manager and long-term employee of Westby Production Components at the time, had the opportunity to purchase the business assets of BDS Fastener & Supply due to the then-owner’s impending retirement. 

The Case for SBA 7(a) Loan

Due to a limited cash injection and a collateral shortfall, conventional financing was not an option. Schmitting turned to Investors Community Bank for options to finance the purchase.  With the bank’s help, he was able to obtain an SBA 7(a) loan, providing a longer amortization period and easing the debt service requirement. The SBA loan met the need for a quick turnaround to get the deal done, as the desired December 31 closing date was looming. The 10-year amortization period helped stretch out the loan over a longer period of time, which helped ease the cash flow burden.

SBA 7(a) loans can be used for a wide variety of expenses. Some of the top uses that fall under the SBA 7(a) umbrella include start-up costs, purchasing a business, working capital, equipment purchase, and refinancing debt. 

In Schmitting’s case, the SBA 7(a) program worked perfectly to provide the desired quick turnaround despite limited collateral and equity injection, because ICB is an approved PLP (Preferred Lenders Program) lender. SBA PLP lenders like ICB offer the full range of SBA loan products, and have the authority to make final credit decisions, which simplifies and speeds up the loan approval process for everyone involved. 

Since the original loan in 2012, ICB was able provide another SBA 7(a) loan to pay out the owner’s personal financing that supported the initial buy out. 

As a result of the SBA financing, the company has grown, enabling them to add additional employees to support the business and the local economy.

Written by Dave Diedrich

Dave Diedrich is Vice President - Senior Business Banking Officer for Investors Community Bank. He works with local businesses in understanding their needs and provides options to meet the demands of their operations. He earned his bachelor’s degree from UW Green Bay and holds an MBA from Notre Dame. He has over 40 years of experience in banking, including 30 years in the commercial lending field.

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