TxCDC Customizes 2 Loans to Support Valley Die Castings’ Growing Needs

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Rio Grande Valley Company Molding Its Future

Valley Die Castings, Inc . built its reputation on creating custom components and providing just-in-time delivery to its Rio Grande Valley customers. So when owner Andrew Brown CPA contemplated applying for an SBA 504 loan, he wanted an equally high level of service.

Brown found what he was looking for in Texas Certified Development Company (TxCDC). “The TxCDC staff members were very easy to work with and very thorough in making sure all the details were addressed,” the owner of the McAllen-based business said.

TxCDC’s staff members, in turn, appreciated assisting a small business owner who had a vision for where his company needed to go. “Andrew knew what he wanted and how to get there,” said Senior Loan Officer Corey Gaskill, who oversaw the loan application process for TxCDC. “The SBA 504 loan met the down payment preferences of the borrower and provided needed expansion funding for a Texas company.”

quote_valleydieA Long History in the Valley

Valley Die Castings has a long history of working in the Rio Grande Valley. The company was started by Andrew’s father, Charles Brown, in 1992 with the help of an SBA 7(a) loan. Brown worked for his father after graduating from college, but then left to attend graduate school and become an accountant. In late 1996, Brown returned to the company when his father experienced serious health problems and purchased the business after his father’s death in 1997.

In the 17 years since Brown took ownership, Valley Die Castings has continued to grow. The company, which has 31 employees, manufactures custom aluminum and zinc die cast component parts. “We basically inject molten zinc or aluminum into a mold and form a part in the shape of the mold,”  Brown said. “We then perform value-added secondary operations such as Computer Numerically Controlled (CNC) machining, deburring, finishing and assembly. These parts are used by other manufacturers in their products.”

Increasing Capacity Through SBA Loans

Having obtained SBA loans in the past, Brown was very familiar with the SBA 504 loan program.  The Valley Die Castings owner finds he has an easier time obtaining financing through an SBA 504 loan instead of a traditional loan. Furthermore, Brown believes SBA 504 loans make good business sense because they have lower down-payment requirements and fixed interest rates, as well as longer amortizations.

Brown worked with TxCDC and Rio Bank Loan Officer Edward Zinsmeister to take out two SBA 504 loans. “The first loan was to refinance our real estate, which lowered our overall payment, and allowed us to get cash out for working capital,” Brown said. “We also have a 504 equipment loan, which was used to purchase new equipment to support our existing operations as well as our growth.  When the equipment is fully operational, we will increase sales 25-35 percent and hire nine additional employees.”

These two loans position Valley Die Castings to tap into the Rio Grande Valley’s growing economy.  “I am so pleased that TxCDC was able to provide the financing that Valley Die Casting needed for their growth,” said TxCDC President Suzanna Caballero. “We are excited to see businesses like Valley Die grow and be able to prosper when economic opportunities present themselves. We hope to help other business owners in the Rio Grande Valley do the same.

Written by Dorian Martin