You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Fort Wayne ranks No. 11 on Forbes list of Opportunity Cities
    Forbes has ranked Fort Wayne No. 11 on its list of Opportunity Cities. The 19-city list, published Thursday, put Columbus, Ohio, at the top.
  • Alibaba stock soars 40% in massive IPO
    NEW YORK – Alibaba debuted as a publicly traded company Friday and swiftly climbed more than 40 percent in a mammoth IPO that offered eager investors seemingly unlimited potential for growth and a way to tap into the burgeoning Chinese
  • China levies record fine
    BEIJING – Drug giant Glaxo­SmithKline was fined $492 million Friday for bribing doctors in China in the biggest such penalty ever imposed by a Chinese court.
Advertisement

Loans provide benefit to area entrepreneurs

Nugent

Charlie Seyler has been running a distribution business for 10 years, but it wasn’t until December 2011 that he decided to buy a building to house his enterprise.

“Our business is growing, and it makes sense to have our own,” said Seyler, president and chief executive of Midwest Weld Source Inc., a distributor of welding products.

“Fort Wayne, northeast Indiana is a good place to do business,” he said. “We looked for a long time to find the right building at the right value.”

Timing is everything. And so is financing. Seyler was able to get a government-backed loan that required 10 percent up front for Midwest Weld’s 12,000-square-foot home at 23201 Roemer Drive in an industrial park in Woodburn. Seyler said earlier this year that his company would invest about $400,000 in upgrades.

The entrepreneur worked with the Community Development Corporation of Northeast Indiana. Sponsored by the city of Fort Wayne, the non-profit business development organization lends money at below-market interest rates.

Government-backed loans are definitely the “more affordable way to get into ownership of a building,” said David Nugent, a principal at BND Commercial LLC in Fort Wayne.

Before the recession hit in 2007, about one in five of the commercial deals Nugent worked on involved government-backed loans.

“For the last year and a half, it’s been probably four out of five that have been those kinds of loans,” he said.

Because demand for property has picked up, the inventory of buildings is leveling off, Nugent said. So although interest rates are still attractive for buyers, the market is getting healthier and also benefiting sellers.

With fewer buildings on the market, sellers “know they don’t have to give these properties away,” Nugent said.

lisagreen@jg.net

Advertisement