Wednesday, June 05, 2013

Eric Corey of EMC Fintech, NYS SBDC Growth Company of the Year

The client had extensive experience in the specialty tool and die industry, producing roll dies for radiator and automotive cooling components. After working for over a month without pay, the client was displaced when his former company became insolvent. Given his design and sales background he wanted to pursue this niche manufacturing market.

The client needed help determining the feasibility of the proposed project and finding financing. Client was additionally challenged by a credit rating that had been impaired while working without pay – because he and remaining colleagues eventually left, they were initially denied unemployment benefits which further exacerbated the client’s personal credit issues.

SBDC assisted client with a feasibility analysis, credit repair, and the development of a business plan. Many financing options were explored due to credit issues. The SBDC facilitated the client’s application process to local public loan funds. Other assistance included job costing systems design, local compliance issues, and employer responsibilities.

Client successfully acquired local public loans (Chautauqua County IDA and STEDO) which combined with private investment (Mitsubishi Financing), trade credit, and equity for a total project of just under $600K. Nine jobs have been created at EMC Fintech.

Update regarding business expansion. Sales are now at 2.5 million, up from $250K year business was launched (2-12 FTEs). Sales to Valeo Mexico were significant in 2012, almost 1 million (40%). May have more machines for them this year. Also exporting to Canada and Europe. Renovations are underway - roof is done. They hope to do lighting, airlines, and electrical work soon.

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