Cabinetry business expedites adding 150 jobs with SEDA-COG loan

FREEBURG – William Penn Cabinetry is ramping up production and will be hiring 150 employees sooner than expected thanks to a $500,000 loan from SEDA-Council of Governments (SEDA-COG).

With the SEDA-COG EDA COVID-19 loan, owner Maurice Brubaker expects to hire the employees over the next several months. They currently have 30 employees at their 401 E. Front St. plant.

“This loan allows us to get the company the resources it needs to further ramp up our production much more quickly than our original estimate of a year. If it wasn’t for this loan, we wouldn’t be able to hire people as fast,” Brubaker said.

He expects to add a second shift in the next six to eight weeks.

The loan will fund inventory, equipment, rent, payroll, utilities, benefits, payroll taxes, and purchases.

Brubaker said working with SEDA-COG’s staff met an urgent need just when he needed it.

“The SEDA-COG staff understood the need and urgency for this. Everybody really pulled together to facilitate that. The attitude of all the staff was above expectations – they are very friendly and a delight to work with. I would recommend anybody to work with SEDA-COG,” Brubaker said.

Brubaker also is expanding to open a company storefront in the next few months. They currently have a designer who works one-on-one with homeowners in their houses to design their cabinetry products. The regionally located showroom will be owned by the company which Brubaker plans to make “a destination” by hosting wine tastings and special events all while creating a homey feel. Other showrooms will be located throughout the country but independently owned by dealers.

RATHER THAN RETREAT, MARCH FORWARD

Brubaker formed and registered William Penn Cabinetry LLC in July 2019 after he saw the abrupt closure of Wood-Mode. His company started production last March.

“It was hardworking people who lost everything in the blink of an eye. I felt it was our duty to help the community and help these people to get back to work. I think it’s good to have manufacturing in the area and those are normally good-paying jobs with benefits,” Brubaker said. “I understood the trickle-down effect of 900-plus people being out of work and possibly losing homes, not putting food on the table.”

Out of 30 total staff, 15 are former Wood-Mode employees.

He was glad when Wood-Mode reopened and said that this gives the region multiple manufacturing options.

Only days after opening, however, the COVID-19 pandemic hit hard, and the company had to close from March 19 to May 8 last year due to the statewide business shutdown.

“Rather than retreat, we marched forward – we hired a vice president of sales and a sales director. We took this as an opportunity to grow,” he said. “It was to help out the region; it gives manufacturing jobs. We have a benefits package that’s extremely competitive and it’s to help the area.”

While they haven’t been able to scale as they first wanted to, SEDA-COG’s loan helps put them in a better position to do so.

“We do what we have to do to put the employees first,” Brubaker said.

As a professional accountant based in Lewisburg, he has no prior experience in the cabinetry business – but he did apply a wise lesson: “Hire people who are smarter than I am. That’s what we did – hired the best people, and they have a lot of freedom. I trust them implicitly,” Brubaker said.

William Penn Cabinetry manufactures cabinets for residential and commercial businesses. The plant consists of cutting rooms, sanding rooms, finish rooms, assembly rooms and a warehouse.

What sets their company and product apart? “We have a well-made product and very good employees. We’ve all come together to make our company a success,” he said, adding that they also have antibacterial cabinetry that inhibits bacterial growth.

For more information about the company, visit williampenncabinetry.com. For more information about SEDA-COG’s loans, contact Mike Morrison at mmorrison@seda-cog.org.

As a community and economic development agency, SEDA-COG enhances the quality of life and economic advantage for residents and businesses in 11 central Pennsylvania counties through its vital partnerships and initiatives. SEDA-COG also is an advocate for the interests of its communities at the state and federal levels. For more information, visit www.seda-cog.org.

SEDA-COG assists communities, businesses with $28.5M in COVID funds

SEDA-Council of Governments (SEDA-COG) has responded to the COVID-19 crisis by assisting communities and businesses with $28.5 million of COVID funds in its 11-county region from March through October.

In addition to the COVID funds, the agency’s total investment in the region from January 2019 through June 2020 was $511.2 million.

SEDA-COG Board President Rich Ridgway thanked the agency for its assistance.

“As board president, I have been more involved than ever with SEDA-COG this year, and I am grateful to their exhaustive efforts to fill the glaring gaps left by this pandemic. This agency is first-rate at how it continually adapts to the ever-changing economic climate presented to it since its founding in 1957,” Ridgway said.

Mike Fisher, SEDA-COG assistant executive director, said the agency has sought to meet its member counties’ needs throughout the economic crisis the pandemic has wrought.

“We know this is an incredibly difficult time for people and businesses. We saw a way we could provide further assistance by assisting with COVID-specific funds in our communities,” Fisher said. “Our staff has gone above and beyond, especially during these extraordinary circumstances, to meet our counties’ needs.”

As part of the agency’s total investment, SEDA-COG helped to administer $25.8 million in COVID-19 County Relief Block Grant (CRBG) funds on behalf of five of its counties, in addition to $980,000 for Sullivan County.

The CRBG funds are for the prevention, preparedness, and response to the COVID-19 crisis. Funds were used to assist municipalities, small businesses, and nonprofits pay for COVID-related costs. The funds are from the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act), through the state Department of Community and Economic Development (DCED).

SEDA-COG provided professional expertise and grant administrative services for the CRBG funds, as well as activity development and management to ensure accuracy and adherence with federal and state regulations.

Additionally, SEDA-COG loaned $2.6 million to 30 businesses. The U.S. Economic Development Administration (EDA) had awarded SEDA-COG $6.3 million from the CARES Act for these COVID-related revolving loan funds.

Finally, SEDA-COG invested $101,632 in 28 homes through the LIHEAP Recovery Crisis Program. Residents in seven of SEDA-COG’s counties had their heating unit repaired or replaced at no cost through August, thanks to CARES Act funds the agency secured. awarded to the agency. The Crisis program normally ends in April, but with the COVID-19 pandemic, the program was extended from May through August.

As a community and economic development agency, SEDA-COG enhances the quality of life and economic advantage for residents and businesses in 11 central Pennsylvania counties through its vital partnerships and initiatives. SEDA-COG also is an advocate for the interests of its communities at the state and federal levels. For more information, visit www.seda-cog.org.

SEDA-COG’s COVID-related assistance in the region (March – October 2020):

$28.5 million total:

·       $25.8 million administration of CRBG funds

·       $2.6 million loaned to 30 businesses from EDA funds

·       $101,632 invested in 28 homes from LIHEAP Recovery Crisis Program

SEDA-COG welcomes employees

SEDA-Council of Governments (SEDA-COG) welcomed employees in August.

Jamie Shrawder returned to SEDA-COG’s Community Development program as project coordinator on Aug. 17. She previously worked for SEDA-COG’s Joint Rail Authority in 2004 and transferred to SEDA-COG’s Community Development program in 2008 where she worked until 2016 as senior program analyst.

Shrawder has 15 years of experience, working in administration, financial management, contracting, marketing, and communications. Her experience includes administrator of governmental affairs for Danville Borough, township manager for East Buffalo Township, and secretary for Turbotville Borough, among other positions. She earned her Bachelor of Science in Wildlife & Fisheries Science from Pennsylvania State University.

Michael Morrison joined SEDA-COG’s Business Finance department on Aug. 31 as a loan officer. He brings a strong sales and management background with a passion for establishing and developing business and personal relationships.

Morrison was a business development officer at First National Bank of Pennsylvania; the dual branch manager at Santander Bank; and account manager/director of media buying at Gregory Welteroth Advertising. He attended Pennsylvania College of Technology for Business Administration and Accounting.

As a community and economic development agency, SEDA-COG enhances the quality of life and economic advantage for residents and businesses in 11 central Pennsylvania counties through its vital partnerships and initiatives. SEDA-COG also is an advocate for the interests of its communities at the state and federal levels. For more information, visit www.seda-cog.org.

Sports center built with SEDA-COG and Juniata Valley Bank partnership

STATE COLLEGE – An entrepreneur’s dream of building a sports facility became reality thanks to a loan partnership with SEDA-Council of Governments (SEDA-COG) and Juniata Valley Bank.

The agency and bank partnered with owner Michael Lee to help fund the creation of Nittany Valley Sports Centre at 177 Champion Dr. Investment partners also helped finance the project. This created six full-time jobs and 10 to 20 part-time jobs, depending on the time of year.

“I’m excited to offer this opportunity for kids and everyone to play sports – that’s important,” Lee said.

The indoor sports and multipurpose facility has offerings for almost every occasion. The area’s competitive and recreational soccer organizations use it to participate in leagues, training, and facility rentals. The Centre offers athletic training through a Parisi Speed School franchise, along with sports clinics, sports tournaments, and summer youth sports camps. The Centre is available for other sports and non-sport activity rentals such as summer camps, birthday parties, school rentals, preschool programming, and more.

While Lee was an architectural engineer by education and trade, he came to realize it wasn’t his passion. After taking his daughter to a gymnastics competition in a large indoor sports facility, he saw the variety and opportunity a sports center offers.

“I thought, why doesn’t State College have a place like this? I asked around, and people said the area has needed a place like this for years. So, I hired a consultant to do a market study which showed it could support this,” Lee said.

However, because of the scale of the project and Lee’s lack of experience in that arena, banks were reluctant to fund the project alone. SEDA-COG bridges that gap and helps to spread the risk by offering various loans in addition to traditional lender financing.

John Reichard, SEDA-COG loan officer, said SEDA-COG was pleased to help make Lee’s project come to fruition.

“Michael faced many challenges to bring this project to reality since he first envisioned it. We were thrilled to bring a solution to the table to help him overcome some financing obstacles. His persistence and optimism are the hallmark of his success,” Reichard said. “Juniata Valley Bank was a fantastic partner in this project, as well.”

SEDA-COG secured a $2.4 million U.S. Small Business Administration (SBA) 504 loan which offers low down-payments, long terms, and fixed rates. Juniata Valley Bank financed the project with a $4 million loan.

“This made the bank more favorable toward loaning to the overall project cost. That’s the reality – we couldn’t have done it without the SBA component and SEDA-COG. SEDA-COG exists to make it easier, and they did,” Lee said.

Fred Wallace, bank vice president relationship manager, said it was an exciting project and are proud project partners.

“We are excited to be partners with Michael on his journey; we believe in the project. We’re thrilled to see that it’s taken off and running,” Wallace said. “Our partnership with SEDA-COG was first rate; we appreciate all the time and effort that John Reichard put into this project, not only with Michael, but also with us. We look forward to having a long-term relationship with Michael and SEDA-COG.”

The Centre opened in February 2019 and Lee is building a second phase addition that will support in-house basketball and volleyball, as well as a wide range of events including sports tournaments, trade shows, conventions, and more. This phase is funded by a state grant and is expected to open in November.

While Lee is from Vermont, he attended Penn State University and moved to State College permanently in 1998.

For more information about Nittany Valley Sports Centre, visit www.thecentrepa.com.

The SEDA-COG Local Development Corporation, located in Lewisburg, is a Certified Development Company providing SBA 504 loans throughout the state of Pennsylvania. For more information, visit www.sedacogldc.org, email sba@seda-cog.org, or call 570-524-4491 and ask for the Business Finance Department.

Information Box:

SBA 504 loans: Long-term, fixed-rate financing to acquire fixed assets for expansion or modernization or to refinance existing real estate or equipment debt.

Benefits of SBA 504 loans:

    • · Long-term, fixed-rate financing (10 years for equipment and 20 or 25 years for real estate)
    • · Lower down-payment vs. conventional financing (as low as 10 percent for existing businesses)
    • · Financing up to 40 percent of eligible costs (land and building purchase, building construction, building renovations, equipment, refinancing of real estate or equipment debt)
    • · Loan is fully amortized (no balloon payment)

Eligibility: For-profit businesses with a net worth less than $15 million and net income less than $5 million.