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Buying major equipment with lower amount down and longer terms, compared to traditional bank loan

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Steico Industries – Oceanside, California

Steico Industries founder, president and CEO Troy Steiner on buying key pieces of large equipment through the SBA 504 program…

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Hi, I’m Troy Steiner founder, president, and CEO of Steico Industries. I’ll take you on tour of the  facility and show you a few pieces of 504 program equipment that we acquired and I’ll show you around.

So 5-axis robotic laser is meant to be used to cut and coat detail tubes in preparation for the welding operation. Machine’s made in Italy, it’s $1.2 million and we purchased it on the 504 program. I’ll show you a little demonstration of how the machine works and we’ll go from there.

The parts being put in this bag, the robot comes and grabs the part. We’re running at a very, very slow speed right now. Hit the part, grab it, return to the laser on the opposite side.

This is another piece of equipment that we acquired from Italy. It’s the only one in the United States acquired on the 504 program, it’s a 5-axis CNC coiling machine. And what it does is bends all of the tubes straights and does the precision coil and bends additional straights if required on the opposite end all in one, solid motion.

A couple examples of some parts that we produce. We produce about 15,000 different types of parts a month, 22 million in sales this year. Company is formed in April 2001. About 105 employees currently; we’re growing about 30 percent a year. These are some of the different welded assemblies that have been produced in the shop, going from main fuel lines for the Boeing 737 program to one-piece, unique parts that are going to secret programs to Northrop Grumman, Lockheed Martin, different Boeing divisions.

Why SBA financing?

Steico, being a younger company and not having large amounts of cash reserves, the lower amount down that was required made it easier for us to acquire larger pieces of equipment or real estate — more flexible, longer term payments compared to a conventional loan. It made the whole process work for us where we couldn’t have done it through a typical banking relationship, without the SBA 504 program.

Who made a difference?

The person I had dealt with, I’ve dealt with on every program has been Ken Rosenthal. He walked us through the first time and the second time it was easy and maybe there’ll be a third time.

Just a lot easier than I expected. I thought there was going to be a lot more paperwork a lot more time in. The whole process moved pretty quick. There weren’t any hiccups or issues. Once he had the package complete, the second piece of equipment went through even quicker.

Download Steico Industries – Oceanside, California Success Story PDF

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