When Mike McComas decided to retire from Leavenworth Electric and Excavation last year, he knew he wanted his successors to be Steve and Chelcie Strode, longtime owners of Strode Construction in Leavenworth.
McComas approached the Strodes and partnered with them to develop an ownership transition plan and help the company he owned and managed for four decades continue its high-quality electrical, excavation, snow removal, and septic installation work.
Leavenworth Electric, which has around 10 employees, has been a longtime primary subcontractor for Strode Construction. Both businesses have excellent reputations in the Leavenworth area and all they needed to accomplish the ownership transition was the necessary funding.
That’s where a Small Business Administration (SBA) loan from Peoples Bank came in.
Working together
Chelcie Strode filled out an online form expressing interest in SBA loan programs. She was quickly inundated with phone calls from banks across the country pitching their services and became overwhelmed by her choices.
One of the calls was from a Peoples Bank lender out of the Wenatchee area.
“By the time I got done with that phone call, I knew, this is the bank I’m going to work with,’” she says. “If I’m going to do this, I’m going to work with Peoples Bank.”
Thus began the Strodes’ journey with Commercial Market Leader, Michael Machado, whose entire 24-year banking career has been spent in the Wenatchee area, and Retail District Branch Manager, Amy Smith.
Peoples Bank provided an SBA 7(a) loan, commonly used to facilitate a business acquisition, and successfully transitioned ownership to the Strodes.
“Those two are the smartest people,” says Chelcie. “The SBA process can be so incredibly complicated. If we didn’t have smart people who were continually trying to pull the rope for us, acquiring this business may not have happened.”
While each business and loan request are unique, with varying levels of complexity, the entire process can take as little as 45 days, says Machado.
“We felt like we were their only clients,” Chelcie says of the Peoples Bank team. “They just were so responsive. I’m not quite sure we would have actually made it through the whole process without them.”
This acquisition was especially helpful to the Strodes’ present and future plans, as seasonal gaps in the construction industry do not exist with the four-pronged service Leavenworth Electric and Excavation provides.
Being able to acquire ample equipment for the business also gives them tangible assets to one day sell when they choose to retire. Overall, they are thankful for the help Peoples Bank provided to make their goals a reality.
“It can be a long, difficult process,” says Chelcie, “but if you’re working with the right people, you can do it.”
The Benefits of SBA
Peoples Bank is a locally owned and operated, independent full-service community bank, that has been serving the community for 100 years.
When it comes to lending, Peoples Bank is part of the SBA’s Preferred Lender Program (PLP). This designation allows their experienced, dedicated, local staff to self-approve their SBA loans which helps expedite the overall loan process.
SBA 7(a) loans and lines of credit can fund non-passive real estate purchases, equipment, tenant improvements, inventory, business acquisitions, qualified business refinance, and working capital.
SBA programs have a number of benefits to consider, including typically fully amortizing loans with longer maturities and lower down payments. These features allow customers to meet cash flow needs and obtain financing that may not otherwise be available through conventional lending.
In addition to the benefits of SBA loans, Peoples Bank works closely with several nonprofit organizations like SCORE Business Mentoring and Small Business Development Center (SBDC), both with local Wenatchee offices, that assist customers in creating their business development plans and projections.
“When working with our customers, we focus on the whole relationship, not just the loan,” says Machado. “We ensure our customers are surrounded by all the resources within Peoples Bank and provide everything they need to be successful.”
Although most business owners are extremely busy, Machado says that getting the ball rolling may not be as hard as they think. He encourages anyone considering an SBA loan to stop in at one of Peoples Bank’s two Wenatchee locations and speak to a banker. “We love to visit with small businesses and offer solid advice about what resources we, or other business partners, can provide, that will help customers achieve their business goals” says Machado.
Originally published in WenatcheeTalk
Equal Housing Lender