A businessman needed financing to start his own business and was unable to secure a traditional bank loan due to lack of collateral
RCAC provided a $250,000 small business loan to Mont Adams to establish his new company
Mont Adams, who was a 50 percent general partner in Jed Welsh Fishing, wanted to leave the partnership to start his own new limited liability corporation. Jed Welsh Fishing was an existing RCAC business borrower.
RCAC evaluated both the feasibility of the new business and restructuring the Jed Welsh Fishing company. Before Adams could secure an RCAC small business loan, RCAC required that an agreement be reached to re-amortize and extend the Jed Welsh Fishing loan repayment terms based on the changing circumstances. Working with an attorney, the owners worked out a dissolution agreement. When the Jed Welsh Fishing loan modification was processed, RCAC loaned $250,000 to Adams to open Adamsbuilt Fishing LLC. RCAC made a subsequent $100,000 revolving line of credit loan so the business could purchase seasonal inventory.
“We started our business last March with an inventory collateral based loan from RCAC. Without the inventory based loan from RCAC we would not be in business today. No other lending institution (including the Small Business Administration) would even consider helping us without another form of collateral,” said Adams, Adamsbuilt Fishing president and CEO. “Our business has been growing rapidly and last fall, RCAC also helped us with a revolving line of credit so we would have the cash to purchase the necessary inventory to support this growth and take care of our growing customer base.”