For over forty years, Great Northern Cabinetry has manufactured quality cabinets and countertops with a focus on affordability and customer service. In the mid-1990s, Phillip Staat and James Lally decided to purchase the business after working as consultants for Great Northern Cabinetry for many years. Their expertise led the company to new growth and the business was thriving. Yet, when the recession hit, they were not spared the challenges that faced the manufacturing industry.
Because of the economic downturn, Great Northern Cabinetry was coping with a decrease both in sales and net worth. After being unable to obtain a line of credit from the bank, they were forced to weather the storm with virtually no working capital. In spite of that, Phillip and James steered their company through the worst recession in their history and were able to return revenue to near pre-recession levels. However, they still needed to refinance their debt and were unable to obtain a conventional loan.
Looking at the story behind the numbers, we found strong leadership, industry experience, and impressive navigation through the recession. We were able to provide them with a $2.1 million SBA 7(a) loan to refinance their existing debts and retain 70 jobs in rural Wisconsin.